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Thu Jan 10, 2013, 12:20 PM

Were 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.

11 replies, 874 views

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Arrow 11 replies Author Time Post
Reply Were there changes in the tax brackets? (Original post)
Bradical79 Jan 2013 OP
DURHAM D Jan 2013 #1
sinkingfeeling Jan 2013 #2
Bradical79 Jan 2013 #5
Cicada Jan 2013 #3
valerief Jan 2013 #4
Bradical79 Jan 2013 #8
Make7 Jan 2013 #6
Bradical79 Jan 2013 #9
hay rick Jan 2013 #7
Crabby Appleton Jan 2013 #10
Bradical79 Jan 2013 #11

Response to Bradical79 (Original post)

Thu Jan 10, 2013, 12:24 PM

1. Huh?

Have you conflated income taxes and payroll taxes?

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Response to Bradical79 (Original post)

Thu Jan 10, 2013, 12:32 PM

2. Was the accountant drunk? Here's the 2012 tax brackets from Forbe's.


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

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Response to sinkingfeeling (Reply #2)

Thu Jan 10, 2013, 12:58 PM

5. It's actually 2 accountants...

... 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.

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Response to Bradical79 (Original post)

Thu Jan 10, 2013, 12:39 PM

3. Social security withholding rose 2%

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%.

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Response to Bradical79 (Original post)

Thu Jan 10, 2013, 12:55 PM

4. Another backdoor "dems are bad for supporting payroll tax change" post. nt

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Response to valerief (Reply #4)

Thu Jan 10, 2013, 01:07 PM

8. Are you replying to me?

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.

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Response to Bradical79 (Original post)

Thu Jan 10, 2013, 01:04 PM

6. It's odd that so many people can find DU yet still not know where Google is.

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Response to Make7 (Reply #6)

Thu Jan 10, 2013, 01:09 PM

9. Thanks jackass.

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Response to Bradical79 (Original post)

Thu Jan 10, 2013, 01:07 PM

7. His income tax would have increased to 15% without the fiscal cliff deal.

Sounds like your dad's employer needs new accountants.

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Response to Bradical79 (Original post)

Thu Jan 10, 2013, 01:10 PM

10. IRS Notice 1036 (3 Jan 2013)

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

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Response to Crabby Appleton (Reply #10)

Thu Jan 10, 2013, 01:14 PM

11. Ah, thanks, I'll pass it along :-) -nt

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