How much do you estimate your take home pay will drop next year?

[benbo]

Okay, I don't intend this to be for debate on the merits. No politics please, that's why I didn't post it there. I'm just interested in how much everyone else thinks they will be affected by the seemingly inevitable plunge.

I get paid monthly. Between the expiration of the payroll tax and the increase in marginal rates I estimate I'll be taking home around $600 less each month (I hope it's not more).

That's not counting what I'll lose on dividend income or if the market tanks.

That hurts, honestly.

Oh well. I do have a raise coming, and we'll probably get off these furloughs we're on in July so maybe it'll be okay.

 

[Flyer_PE]

If you include the increases in insurance premiums, I think my actual take-home will drop between $400 and $600 per month. That number includes a small increase in before-tax income.

 

[Dexman PE PMP]

We're expecting a COLA increase in the neighborhood of 3%, which will offset the Medicare taxes going back to 6.2%, but other than that even our payroll guys don't have a clue as to what to expect...

 

[Capt Worley PE]

I don't want to think about it...

 

[Ble_PE]

^Me neither.

 

[Dexman PE PMP]

The Medicare tax increase will cost me about $2k by itself... (over the course of the year)

 

[Capt Worley PE]

The marriage penalty will be coming back, too.

 

[snickerd3]

I have no clue...In illinois we never saw the fed benefits that are expiring as the state income taxes went up by almost the same amount. With our contract in limbo, we have no clear picture of what the next 2 yrs will be. the very least a pay freeze and likely increases to the insurance cost so i will be a negative year...thats all i know

 

[Capt Worley PE]

In all honesty, I won't know until I see my paycheck. Of course, all that is electronic now, so I'll have to dig it up. They don't mail it like they used to.

Insurance up, fed taxes up, state taxes same...

 

[Lumber Jim]

The marriage penalty will be coming back, too.

There's a marriage "Penalty" ???

I guess I haven't thought about all the hits we'll take next year.

 

[Flyer_PE]

Even if they strike a deal on taxes, it will be a bit before they figure out the withholding tables. It's going to be a PITA for the employers to get payrolls sorted out.

 

[Dexman PE PMP]

The marriage penalty will be coming back, too.

There's a marriage "Penalty" ???

I guess I haven't thought about all the hits we'll take next year.

because of the progressive tax rates, it used to be that two people making a combined income were taxed more than if they were single.

For example, my wife and I each make $50k per year. The tax rate for $50k is 12%, but if we combine incomes (married filing jointly), the tax rate for $100k is 15%. So we would be "penalized" 3% for being married... (all numbers are made up for the example)

For the last few years, the feds updated the tax rates for the "married filing jointly" to be more of a flat tax to eliminate that penalty, but that part of the tax code is set to expire 12/31/2012.

 

[benbo]

Here's a rough cut calculator - of course most people have different deductions -

http://www.bankrate....?ec_id=Tweet101

 

[Dexman PE PMP]

^^^ That makes me want to cry.

 

[Flyer_PE]

^Pretty painful ain't it. And all they have to do to increase the taxes by this much is......nothing.

 

[Capt Worley PE]

The marriage penalty will be coming back, too.

There's a marriage "Penalty" ???

I guess I haven't thought about all the hits we'll take next year.

because of the progressive tax rates, it used to be that two people making a combined income were taxed more than if they were single.

Not just that. The standard deduction for married filing jointly was less than the collective standard deductions for two single people filing separately.

 

[Judowolf PE]

Thanks Benbo for the calculator, there's another 9K I can kiss goodbye! Pretty sickening to say the least!

 

[blybrook PE]

I just did that calculator option and with the so called "raise" I just got, I'm gonna loose 3.5k more each year in taxes. The raise deosn't even cover it, nor does it cover the required insurance BS!

This just made my day...

 

[goodal]

Looks like I can forget replacing my car. Theres $4.5k out the window. Its ok though. The government knows better what to do with my money than I do.

 

[Master slacker]

Guess an IRA is not an option next year. Another way to get us to become more dependent on the gubment...