Tax Day 2024 and How to Get an Extension from the IRS
Tax Day is on Monday, Apr 15, 2024. Not ready to file? Submit an electronic request to the IRS for an extension ASAP!
The fiscal cliff is a collection of Federal tax and spending changes that will affect the tax liability of nearly every single one of the 160 million wage earners in America. In payroll, potential increases in withholding percentages and the number of allowances claimed for tax situations will directly affect an individual's take-home pay. Tom Reahard, founder and CEO of Symmetry Software states that, "Regardless of how Congress acts, Americans will see a drastic increase in tax withholding, causing a decrease in take-home pay."
The fiscal cliff is a collection of Federal tax and spending changes that will affect the tax liability of nearly every single one of the 160 million wage earners in America. In payroll, potential increases in withholding percentages and the number of allowances claimed for tax situations will directly affect an individual's take-home pay. Tom Reahard, founder and CEO of Symmetry Software states that, 'Regardless of how Congress acts, Americans will see a drastic increase in tax withholding, causing a decrease in take-home pay.'
To display the potential increase in the amount of federal tax that will come out of paychecks come the first of January, Symmetry Software, the company behind the popular PaycheckCity® website, has created a fiscal cliff payroll graph where one can compare pre- and post-fiscal cliff tax amounts for annual income levels ranging from $5,000 to $300,000. Simply visit PaycheckCity® and click on the 'Fiscal Cliff Ahead' image to access the interactive graph.
Here's how the graph works: To see the potential increase in the amount of federal tax that will come out of a paycheck, select a filing status from the Form W-4 (single or married,) and the number of federal allowances claimed. Hover the mouse over the bar that corresponds to the approximate income level. Check the summary window to see the estimated impact the fiscal cliff could possibly have on the amount of federal taxes withheld from a paycheck. For a single individual claiming one federal allowance, with an annual income of $75,000, the graph shows that she currently pays $17,505.50 in federal tax deducted from her paycheck. Should the federal tax and spending changes revert back to the pre-Bush federal calculations from 2001, she will pay $22,448.50, a difference of $2,943, representing a 16.81% increase. For a married one-percenter making $275,000 a year and claiming four deductions, the current tax is approximately $69,273.90. Reverting back to 2001's rates would create a $8,562 increase for a post-cliff tax of $77,835, or a 12% increase.
Reahard offers the following advice on using Symmetry's online tax graph:
For additional information on Symmetry Software's payroll-withholding tools, visit Symmetry.com.
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