New taxes hit first 2013 paychecks - 13 WTHR Indianapolis

New taxes hit first 2013 paychecks

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INDIANAPOLIS -

Watching your money this morning, you may notice your first paycheck of 2013 is smaller than expected. That's because some taxes are taking a bigger chunk out of your earnings.

Two big things took place in the New Year that will affect how much you bring home with each new paycheck this year.

The temporary reduction in Social Security payroll tax expired.

For someone who makes $50,000 a year, that means you'll be paying a $1,000 more a year into Social Security.

It's frustrating for people who already struggle.

Cindy Moore is a state worker. "A lot of times, I feel overwhelmed and I am sure there are a lot of people who feel this way," she said. "And this little issue just makes it worse."

There's also a payroll tax increase that will impact 77 percent of families.

If you make between $40,000 and $50,000, you'll have a tax increase of $579 in 2013. Those making between $50,000 and $75,000 will see an $822 increase.

The big tax increases will be on the rich.

The fiscal cliff deal includes a higher income tax rate of 39 percent on people making $400,000 and more and couples making $450,000 or more.

Calculate how much more you will pay

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