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Two Fiscal Cliff Tax Impacts for the Taxpayer

The Bush-era tax cut expiration is right around the corner, as of right now no new deal has been implemented for the December 31st, 2012 deadline. We want to highlight two of the many factors that may happen come January 1st that could lighten your pockets:

• The social security payroll tax holiday may expire on December 31st. This will raise the amount of social security tax withheld from each employee from 4.2 to 6.2 percent. This will mean that each of your paychecks will be smaller every pay period.

• Tax refunds could be delayed. If the tax cuts expire on the 31st then the IRS needs to create revised tax forms that may not be ready by the time of your usual filing.

So you may want to plan accordingly if these changes happen, but look at the bright side, I am sure we have all already saved a couple dollars from not having to pay for Bruins tickets this year 🙂

As always, please consult your personal tax advisor on all the above information.


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