Skip to comments.Reuters Wants to Know How You Are Dealing With Payroll Tax Hike
Posted on 01/11/2013 8:19:51 AM PST by kristinn
Paycheck looking lighter? How are you adjusting spending after the payroll tax-hike? Contact firstname.lastname@example.org or @langejason
clipping more coupons. someone has to pay for the president’s 4 million dollar golf vacations.
Actually, there should have never been a “payroll tax cut”, so the “payroll tax hike” is not a bad thing (given the premise that Social Security is here to stay for the next few years, anyway). The “payroll tax cut” was simply a move by 0bama to look like he was cutting everyone’s taxes.
I am no longer sending money directly to Barack Obama to help him defray the expenses of those frequent Hawaii vacations.
co workers increasing the dependents on their ww2’s....
Spending less on trivialities and more on ammunition and other staples.
Obama voters whining about their paychecks on Twitter:
I’ll be cutting back on my 401K (or maybe eliminate) contributions.
As I see it, our 401K’s will be the likely next target in the coming year(s). What is the penalty of early withdrawal of the entire 401K?
I might as well get something then nothing later on.
Lost about $150 every two weeks. Not amused.
My family is cutting back on spending in the private sector because more of our dollars are being forcibly taken by the public sector.
As others do the same, the private sector, from whom the dollars are extracted by the public sector, will shrink. The public sector will receive fewer and fewer dollars to consume.
It is the very simple equation seen most clearly in the host-parasite relationship. Eventually, both the host and the parasite die.
“It was never yours to begin with. Just be thankful you’re allowed to keep what we let you keep.” - Lord Barry
Unemployment Insurance Reauthorization, and Job Creation Act of 2010 provides a two percentage point payroll tax cut for employees, reducing their Social Security tax withholding rate from 6.2 percent to 4.2 percent of wages paid.
So the Social Security Tax withholding rate returns to the 6.2% which was reduced by 2% for two years during 2011-2012.
Same here...I will probably have to decrease my 401k deferral.
The way I look at it I simply never got that raise last July. Also, for some reason my federal and state withholding went down.
“How are you adjusting spending after the payroll tax-hike?”
spending and saving less
Obama voters? Paychecks? Bless your heart.
I believe it's 10% plus the whole withdrawal is treated as regular taxable income, at your current marginal rate. If your entire withdraw was within the 15% bracket, for example, the total hit would be 25%.
I clicked on a random picture of one of the paycheck complainers.
A narcissistic Obama voter, who now wonders why he has less money.
There is NO payroll tax hike.
The SS payroll tax has been restored so that SS can go fback to pretending at solvency, unfortunately, you hear nothing about fixing Social Security itself or how much farther in the hole it's gone in the past two years.
10% penalty and 28% tax. Tax can either be paid off the bat or you can wait until end of year and put it on tax form as income.
If I had a 401K I would cash it ALL in now, no matter what the penalty, and buy as much low cost real estate (rental units especially) as you could get your hands on
I can’t tell; I got a promotion/raise on 12/16, so my check went up.
After receiving my fist check today, I have discovered that I will be $350 per month lighter in the wallet. I, obviously not an Obama voter, am not happy in the least bit. Thank you very much GOPE.
Yes it is 20% Federal & there is a 10% penalty plus State Tax. I just recently cashed mines out even though it is not much. I got laid off last October 30, now my unemployment check is like $200 less than what I was earning when I was working. I do need the money and I regret opening a 401K when I should have instead saved it so I can have access to my money without penalties.
This is what I was given remember it is only estimate & I did took out a loan about 2 years ago and was being deducted from my paycheck so here is what I was notify of:
Total Gross Distribution $9,467.93
Cash amount to you $5,622.36
Loan distribution $1,762.62
State tax $189.36
Federal tax $1,893.59
Total Estimated Net Distribution $5,622.36
One of hubby’s coworkers bought a house to rent out in a nice college town in TN a year ago. The last three tenants all stopped paying rent and when the sheriff was brought to the front door, they all said they had 90 days before he could evict them. Also, they all trashed the place and he has lost his butt on his investment and is just going to outright sell the house after this present tenant is gone. He ran background checks, credit checks and called their past landlords and everything checked out. The word is out that the landlord has no rights and that no one really needs to pay rent as the law is on the side of the tenant.
No, it is 10% penalty plus tax on the withdrawal as ordinary income. The rate would be dependent on the person’s tax bracket as of the end of the filing year, as the income is lumped into current year’s income. Miniumum = minimum.
No it was not a hardship withdraawl and fully understood the tax consequences. Yes it did allow hardship withdrawl but I did not fall into any of the catagories so I said hell with it and just cashed it out
This along with the FSA limit reductions of Obamacare will result in a $1200 tax increase for me. Of course all of this pales in comparison to the loss of purchase power I have suffered over the last four years due to the monetizing of the debt. I will gladly accept the $1200 loss if we can turn grocery prices back to where they were in 2008.
that sucks. in this economy, can’t imagine why it’s not a hardship to become unemployed.
If it was easy everyone would be doing it
I had tenants like that before
You’re right it can be difficult but you learn to deal with people like that. They lie- you lie. Just tell the sherrif they moved out and are trying to move back when you dont want them.
Once their stuff is out of the building and in storage they will have to find another place to sleep that night.
I had a tenant who piled garbage up _ photographed the crap out of it and shovelled it out the window into my dump truck. When they showed up that evening I told them dont even bother coming in, they were evicted. Never heard a word from them afterwards
You gotta find good properties and be willing to WAIT for a good tenant- I passed up many, and demanded first, last, AND security deposit up front- if they could not do that they could not afford the place.
I also treated good tenants extremely well- I never raised their rent once they moved in- I had a 10 year tenant who was paying about half the market rate at the end and he was thrilled, kept the place clean and helped out with the whole building, and had no intentions of looking around for new place since his rent was so cheap.
Once again, if it was easy- everyone would be doing it.
I’m laughing my fanny off. The schadenfreude I’m getting from watching leftist heads exploding is worth the price I pay.
I put a buck in my good-feelings jar every time I tell a Lefty, “How’s it feel to be one of the rich?”