You may not have noticed it yet, but your paycheck will be smaller this month. Uncle Sam is taking a larger amount from your paycheck because of tax increases in Social Security and Medicare.
It's something Direse Curry, father of three, says is hard to swallow.
"It doesn't matter if it's ten or 80 dollars if it's your money you deserve to have it. Yes, it's going to hurt in the long run, if not right now it will hurt in the long run," said Direse Curry, College Station Resident.
Rebecca Escoto isn't too happy about the changes either.
"It's going to effect a lot because that means that I have to cut down on what I buy when I put food in my house or when I put gas in my car when all the bills roll in," said Escoto.
Don Madewell has been preparing taxes for more than 13 years. He says the new taxes will hurt some more than others.
"If you're making $30,000 losing $600 hurts you a lot more than the person making $200,000 losing $2,200," said Madewell with H&R Block.
Senior Tax Preparer, Don Madewell says the social security tax will increase by 2%.
The increase is now being implemented after Congress voted to end the Tax Holiday, which was included in the 2010 Federal Stimulus Package. The amount of taxes citizens were required to pay on social security was lowered from 6.2 % to 4.2 %. Tax experts say the purpose of the tax break was to help boost our economy.
Congress may have avoided the Fiscal Cliff, but tax experts say it will cause a delay when it comes to filing and processing taxes this season.
To comply with tax law changes, experts say the IRS won't even accept your tax returns until the end of the month.
"Normally the taxes are out the third or fourth week of January so people anticipating their refund from Christmas are going to be getting it late," said Madewell.
"They're gonna do what they're gonna do," said Escoto.
It's an adjustment we all will have to deal with whether we like it or not.
To comment, the following rules must be followed:
If you believe a comment violates the above rules, please use the Flagging Tool to alert a Moderator.
Flagging does not guarantee removal.
Decisions to suspend or unsuspend accounts are made by Station Moderators.
Questions may be sent to email@example.com. Please provide detailed information.