You may have noticed that your paycheck is smaller this year. This is because Congress allowed the temporary Social Security payroll tax cut to expire. The payroll tax increased this year from 4.2 to 6.2 percent on all earned income up to $113,700. This means that a household earning $50,000 per year will pay approximately $1,000 more in payroll taxes.
Many of us do not like to think about our tax situation until it is time to file our returns. Take time to project this year's taxes - during the course of the year you may have a life event that has affected your tax situation, such as a job change, birth of a child or other factors. Seek the advice of a tax professional when you experience such changes so you can get every deduction for which you qualify.
Source: aim, the monthly magazine for LGFCU members