How to Make Up for the Payroll Tax Increase

In 2011 and 2012 we got a break when the Social Security payroll tax temporarily dropped from 6.2% to 4.2%. Now it's back where it started. For a family with a household income of $100,000, the payroll tax hike means a loss in income of about $2,000 a year. Making up for that loss in income will require some careful planning to cut expenses and increase earnings, but it can be done.

How to Make Up for the Payroll Tax Increase

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