Government Giving Taxpayer up to $2,136 Tax Break in 2011 and another in 2012 by Reducing Social Security Withholding
Your Tax Savings = up to $2,136 per year!
For 2011 and probably 2012 social security paid by the taxpayer was reduced from 6.2% to 4.2%. And 2% is a lot ($760) given the average taxpayer earnings in the US was $38,000 in 2008. For each $10,000 of taxable earnings, the taxpayer saves $200 up to $106,800. While the issue of who is going to pay for social security is something our government is definitely going to have to tackle in the next few years, they certainly are more focused right now on fixing the economy. This tax break will do that! You do not have to do anything to take advantage of this tax savings. Your employer or tax preparer will make sure you are getting this tax break!
Stuart Steinberg, CPA, MBA has owned a strategic tax planning practice on the North Shore for 23 years. Please feel free to contact him anytime and let Erock Tax take care of you!