Updates to 2024 Federal Taxes
IRS has updated tax brackets for 2024. See how this affects your first paycheck this year!
The proposed budget agreement on Capitol Hill is kind of like a holiday fruitcake; it looks good on the outside, but is it really fit to eat? It sounds good: Social Security withholding will be 2% less for the year. However, the proposal also lets the Making Work Pay (MWP) credit expire for 2011. The Making Work Pay Credit provided a maximum credit of $400 per person or $800 per couple toward federal tax liability. By comparing the numbers, it's clear that this agreement as described actually make taxes higher for a percentage of tax payers.
The proposed budget agreement on Capitol Hill is kind of like a holiday fruitcake; it looks good on the outside, but is it really fit to eat? It sounds good: Social Security withholding will be 2% less for the year. However, the proposal also lets the Making Work Pay (MWP) credit expire for 2011. The Making Work Pay Credit provided a maximum credit of $400 per person or $800 per couple toward federal tax liability. By comparing the numbers, it's clear that this agreement as described actually make taxes higher for a percentage of tax payers. Here are some examples:
'We cannot accurately forecast the results until the budget agreement is passed and the 2011 withholding rate tables are released by the IRS' said Sam Kerch, CPA, the Director of Tax Compliance for paycheckcity.com and Symmetry Software. 'On the surface it looks good but you should examine the details to see how your paycheck will be impacted.'
When the new tax rates do become available, check out the updated paycheck calculators at paycheckcity.com to be sure you're withholding the correct amount to optimize your take-home pay.
IRS has updated tax brackets for 2024. See how this affects your first paycheck this year!
Check out the updated 2024 Federal benefit limits for 401(k), HSA, and simple IRA, and more. Stay informed and plan your finances with confidence!
New updates to the 2023 and 2024 401k contribution limits. Use a free paycheck calculator to gain insights to your 401k and financial future.