Don't Be Fooled By January Pay -- Higher Taxes Loom - 47 ABC - Delmarva's Choice

Don't Be Fooled By January Pay -- Higher Taxes Loom

Posted: Updated:

WASHINGTON (AP) - Even if the "fiscal cliff" can't be avoided, workers probably won't feel the full brunt of the tax hikes in their paychecks right away.
    
The IRS has delayed releasing income tax withholding tables for 2013. So employers are planning to withhold income taxes at the 2012 rates, at least for the first one or two paychecks of the year.
    
That doesn't mean take-home pay won't take a hit. Social Security payroll taxes are set to increase on the first of January. And that will be reflected in paychecks.
    
And the other tax increases will be felt eventually. If employers don't withhold enough taxes in January, they will have to withhold even more taxes later in the year to make up the difference.
    
If Congress fails to act, workers at every income level face significant tax increases next year. According to the Tax Policy Center, a taxpayer making between $50,000 and $75,000 would get an average tax increase of $2,400.

(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

12/24/2012 1:17:09 PM (GMT -5:00)

  • Most Popular StoriesMost Popular StoriesMore>>

  • Delaware Man Accused Of Assaulting Woman In OC

    Delaware Man Accused Of Assaulting Woman In OC

    Wednesday, July 30 2014 11:08 AM EDT2014-07-30 15:08:04 GMT
    OCEAN CITY, Md. - A Delaware man has been arrested, after he allegedly assaulted a woman in a local beach town.More >>
    OCEAN CITY, Md. - A Delaware man has been arrested, after he allegedly assaulted a woman in a local beach town.More >>
  • Homeless Sex Offenders

    Homeless Sex Offenders

    DELAWARE - Individuals featured in this slideshow are NOT wanted. They are sex offenders who have registered with Delaware State Police as homeless. These are public notifications.More >>
    DELAWARE - Individuals featured in this slideshow are NOT wanted. They are sex offenders who have registered with Delaware State Police as homeless. These are public notifications.More >>
  • One Of Wicomico Co.'s Most Wanted Arrested In PA

    One Of Wicomico Co.'s Most Wanted Arrested In PA

    Tuesday, July 29 2014 12:21 PM EDT2014-07-29 16:21:36 GMT
    WICOMICO CO., Md. - A man Police in Wicomico County have been searching for, for three years, has been apprehended. The Wicomico County Sheriff's Office says on July 23rd, an Officer from the Mt. JewettMore >>
    WICOMICO CO., Md. - A man Police in Wicomico County have been searching for, for three years, has been apprehended.More >>
Powered by WorldNow
Powered by WorldNow All content © Copyright 2000 - 2014 WorldNow and WMDT. All Rights Reserved. For more information on this site, please read our Privacy Policy and Terms of Service.