Our total tax would increase by $354/month over the 2011 rate, which would definitely impact our budget. We would probably split it into thirds and cut travel, gifts, and home improvement.
So, how much would your tax increase and how would you adjust?
According to that, the full fiscal cliff would increase our tax liability by about $20,000. Obama proposal would raise it by about $5000.
We don't budget, so we wouldn't necessarily adjust. But our raises would definitely cover the Obama proposal and probably the full fiscal cliff (though that's a screwy calculation because of taxes and when we get our raises and such).
As far as I can tell this doesn't include the 2% increase (or elimination of the decrease) in SS tax, so you have to add that in. From what I read eliminating this cut is a definite yes.
The full fiscal cliff is giving us AMT, which would honestly shock me if we were affected.
ETA- Nevermind, it looks like it does include payroll tax at the bottom.
I don't really know since most of our income comes in the form of bonuses. But if DH has a good year and our taxable income is in excess of $400k (the newest Obama proposal), I will gladly pay the extra taxes.
I just always thought that taxable income over 250k as a thresh hold was way too low.
Post by sillygoosegirl on Dec 20, 2012 11:22:41 GMT -5
Almost $1K/month at our current income level, which I actually totally support happening. Unfortunately, even Obama seems to think my household should pay even less in taxes than we do now.
However, it would reduce our take home pay in the potential SAHM proposed budget by almost $300, bringing our "leftover" money in the budget down to $81/month. That "leftover" is supposed to cover life insurance and all other new baby expenses, so we'd definitely have to give up something to make it work. That said, I'd be totally willing to do it for the good of the nation.
Fiscal cliff would raise our taxes by about $3k. Last year we got a large refund, so I plan to just adjust our withholdings if they don't come to an agreement.
How does a will reduce/impact your estate tax owed?
Significantly increase unless you're passing it to your spouse through a will. Thus, the necessity of a will.
So if I die intestate and everything goes to my husband, there will be estate tax implications? Only for non-joint stuff, right? Maybe luckily for us for this reason, neither of our retirement accounts will be at $1 million any time soon...
So if I die intestate and everything goes to my husband, there will be estate tax implications? Only for non-joint stuff, right? Maybe luckily for us for this reason, neither of our retirement accounts will be at $1 million any time soon...
I don't know. I thought I read something that said you needed a will to avoid the tax implications, but i'm not seeing anything that says that now. We don't have a will - and we REALLY need one - so I've buried my head in the sand. Fortunately, most of our assets are jointly held.
I think only about $15,000 of our non-retirement money is not joint. And the only other thing I can think of that is separate is my husband's car (which is totaled, so it is worth $0 in theory). I've been thinking of getting a will lately anyway because I keep thinking of the instance where something happens to both of us, but one of us dies an hour after the other, which I think would mean that whoever died last's parents get everything? Which doesn't seem fair.
Almost $1K/month at our current income level, which I actually totally support happening. Unfortunately, even Obama seems to think my household should pay even less in taxes than we do now.
I am so conflicted. I absolutely think we need to raise taxes, but I also think we need to take a hard look at spending. I'm starting to feel unwilling to raise taxes (which our family will pay a disproportionate amount of), if we're not taking a hard look at spending as well. I absolutely think we need to address the deficit now.
I would prefer they look at spending first, but I would be willing to pay slightly more in taxes. However, I feel like the "cliff" is a huge sudden increase, and it would be much better for the economy to have gradual increases over the next 5-10 years.