Wednesday, February 16, 2011

2011 Social Security Tax Break



Part of an extensive tax cut package signed into law last December 17th is a new tax break on social security taxes.  Previous to January 1st 2011, a social security tax of 6.2% was taken from workers yearly wages.  With the signing of this tax cut package social security taxes have dropped to 4.2% per yearly income.  To put in in perspective, this tax cut will drop the amount of tax taken out of your paycheck from $6.20 per $100 of wages to $4.20 per $100 of wages.  Workers who claim the Making Work Pay Credit, which allows for up to $400 to an worker making less than $75000 or up to $800 for an employed couple making less than $150000 will only see the difference from this social security tax break above the Making Work Pay credit.

Long story short:  you may, or may not, have noticed a barely noticeable increase in your paycheck.

9 comments:

  1. ughh, been putting off doing my taxes, I'm pretty sure I owe money this year :.(

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  2. Well it's a good job I'm a johnny foreigner

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  3. I have noticed yet, but I sure am excited for my tax return! Should get a good chunk back!

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  4. i did! i thought i mustve gotten a tiny raise...

    randomramblingggg.blogspot.com

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  5. Awesome. I just thought I had put in hours I hadn't thought about.

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  6. Lost 400 euro last year to taxman. Now playing: The Beatles - Taxman

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  7. I'm leaning towards "may not" :)

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  8. I'm surprised they can afford to do this the way the current state of the economy is!

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