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First stumbling block of the new year

January 3rd, 2013 at 02:01 am

I calculated how much less we'll be taking home now that the payroll tax cut has expired. I'd set aside $90 in the budget, but I forgot that AS got a full-time job and NT and I both got raises since the break was implemented. Plus I may have misremembered how much it was to begin with. Anyway, the actual hit is going to be $226 per month. I was $136 off! Ouch.

I took that out of the house down payment savings line item. Now we'll be $675 short every month of what we need to accomplish all three goals. It's a lot to come up with every month for 4 years. But, hopefully we'll get some unexpected windfalls as well as curveballs over the course of it.

Posted in Uncategorized | 5 Comments »

5 Responses to “First stumbling block of the new year”

  1. creditcardfree Says:
    January 3rd, 2013 at 02:12 am 1357179141
    1357179141

    I think the payroll tax expiring is going to hit a lot of people. We are still up on our income, but only because of a 1.7% raise and an increase in our housing allowance.

  2. ThriftoRama Says:
    January 3rd, 2013 at 03:10 am 1357182603
    1357182603

    We're all scrambling trying to figure out how much we're going to be bringing home. I'm still waiting for payday to be sure.

  3. CB in the City Says:
    January 3rd, 2013 at 02:50 pm 1357224637
    1357224637

    I got a modest raise this year, but I believe the payroll tax will be twice the amount. Which means, one step forward, two steps back.

  4. SavingsQueen Says:
    January 3rd, 2013 at 03:33 pm 1357227180
    1357227180

    Personally, I am glad the payroll tax went back up again. That small percentage was taken from the FICA (social security and medicare) taxes that employees have always paid (with the increase we will be once again paying the 7.65% we paid in the past). We need to put the funds back in again to help fund social security.

    By the way, I was just reading a recent Suze Orman book and she says if you are 50 and over none of the proposed changes to social security will affect you. Yea!!

  5. ceejay74 Says:
    January 3rd, 2013 at 03:41 pm 1357227677
    1357227677

    SavingsQueen, I agree in spirit, but I think it's hypocritical that Congress fought so long to save upper-class tax cuts but didn't even mention this one, and that everyone is saying the middle class won't see any increase in taxes. And, the economy is going to suffer because of this. I've seen estimates of big job losses and GDP slowing as a result. I don't think the money should come out of Social Security any more, but I wish they'd given an alternate tax break and lowered the income threshold of the other increase to compensate -- say, to people making $300K-$350K.

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