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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsWere there changes in the tax brackets?
Just confused because the accountants at my dad's job said they "couldn't find" the 10% tax bracket he had been in resulting in a substantially smaller paycheck. Thought I'd see if any tax experts here might know what the deal is.
DURHAM D
(32,609 posts)Have you conflated income taxes and payroll taxes?
sinkingfeeling
(51,457 posts)http://www.forbes.com/sites/moneybuilder/2011/09/30/2012-federal-income-tax-brackets-irs-tax-rates/
Tax Bracket
Married Filing Jointly
Single
10% Bracket
$0 $17,400
$0 $8,700
15% Bracket
$17,400 $70,700
$8,700 $35,350
25% Bracket
$70,700 $142,700
$35,350 $85,650
28% Bracket
$142,700 $217,450
$85,650 $178,650
33% Bracket
$217,450 $388,350
$178,650 $388,350
35% Bracket
Over $388,350
Over $388,350
And here are a few related points:
The personal and dependency exemption will rise to $3,800
The standard deduction for married filing jointly will rise to $11,900
The standard deduction for singles will rise to $5,950
Bradical79
(4,490 posts)... for a company of around 20 people.
I'm not sure what he brought home before, but he ended up with only $250 take home pay for two weeks of work (around 80 to 90 hours of work), which is a significant drop and far more than can be accounted for with the payroll tax holiday ending.
Cicada
(4,533 posts)For decades 6.2% of wages were withheld for social security tax. Then to stimulate the economy it was temporarily lowered to 4.2%. Now it is back to normal - 6.2%.
valerief
(53,235 posts)Bradical79
(4,490 posts)If so, it's nothing of the sort. If fact, I fully support the end of the payroll tax holiday as do everyone in my family. It wasn't mentioned at all.
Make7
(8,543 posts)Bradical79
(4,490 posts)hay rick
(7,613 posts)Sounds like your dad's employer needs new accountants.
Crabby Appleton
(5,231 posts)contains payroll withholding calculation guidance for 2013; 10% rate still there. Look at table 7 near the end for the annualized rates.
http://www.irs.gov/pub/irs-pdf/n1036.pdf