Tax Cut Help for the Math Challenged
No need to break out pencil, adding machine or abacus: We can tell you what the tax deal will do for your paycheck.
What does a drop from 6.2% to 4.2% in the tax that pays for Social Security mean to your paychecks?
It’s really pretty simple. Take your gross pay, reduce it by the amount you divert to flexible spending plans for medical and/or child care costs (since that money isn’t hit by the payroll tax) and multiply the result by 0.02. That will tell you how much your paycheck will go up starting in January.
Don’t trust yourself (or don’t want to spend the time) to do the math yourself? Then just use our new calculator: What the 2011 Tax Cut Is Worth to You.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The table below will give you quick look at what the payroll tax change -- part of the deal to extend the Bush-era tax cuts -- is worth at various salary levels. Once annual pay passes $106,800, the value of the tax cut stops rising. That’s because the part of the payroll tax that pays for Social Security applies only to the first $106,800 of income.
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
-
Stock Market Today: The Dow Leads an Up Day for Stocks
Boeing, American Express and Nike were the best Dow stocks to close out the week.
By Karee Venema Published
-
Black Friday Deals: Are They Still Worth It in 2024?
Is Black Friday still the best day for deals? We share top tips for smart holiday shopping.
By Jacob Wolinsky Published
-
NYC Congestion Pricing: Ghost Tax or Necessary Fee?
State Taxes Drivers headed to Manhattan’s downtown district will face a new $9 toll in January.
By Gabriella Cruz-Martínez Published
-
Tax Credit vs. Tax Deduction: What’s the Difference?
Tax Breaks Your guide to tax deductions and credits, how the IRS treats them differently, and how they impact your tax bill.
By Kate Schubel Published
-
Premium Tax Credit: Are You Eligible For This Health Insurance Tax Break?
Tax Credits The tax credit can help qualifying individuals pay for coverage from the Affordable Care Act’s health insurance marketplace.
By Gabriella Cruz-Martínez Published
-
IRS: Here’s How to Recover Your Tax Records After a Natural Disaster
Tax Records Your tax documents can help you get federal relief faster, the IRS says.
By Gabriella Cruz-Martínez Published
-
Voters Approve New Veteran Property Tax Relief
Tax Relief Thanks to the election, some Veterans will soon see expanded property tax exemptions.
By Kate Schubel Last updated
-
Nevada Approves Diaper Tax Relief Amid Childcare Crisis
Tax Relief Nevada voters have expanded sales tax relief to diapers. But are prices still too high?
By Kate Schubel Published
-
Earned Income Tax Credit (EITC) 2024: How Much Will You Get?
Tax Credits The refundable amount for workers with or without children is slightly higher this year. Here’s what you need to know.
By Gabriella Cruz-Martínez Last updated
-
Five Cities With the Lowest Property Tax in the U.S.
Property Tax Property taxes are ultra-low in these popular metro areas, but is housing affordable?
By Gabriella Cruz-Martínez Last updated