Here's something you wouldn't expect: Your Federal Taxes Withholding MAY be going up in 2011

[RobertSeattle]

If you make under $75,000, you Federal Income taxes are going up! It has to do with the "Making Work Pay Tax Credit" that expired 12/31/2010. If you make under 75K, your withholding will actually be going up with your first paycheck in 2011 assuming you didn't have a salary change.

Yes, your SSN tax will be going down by 2% points, but due to changes in the withholding tables, you Federal Tax withholding will actually increase with your first paycheck in 2011. You'll still have a net increase in take home, but it came as a surprise when I did our company's payroll, and everyone who made under 75K got an increase in their withholding.

[Broderick]

1. I noticed it

We pay my wife more through the business than I. Her net check went up, less taxes, and mine went down...

[elleng]

2. How does that work, if tax going down,

'changes in withholding tables?'

And the net increase in take home due to what?

[RobertSeattle]

5. Here's an example (Apple to apple)

Single, 1 Deduction, paid semimonthly, taxable income of 1741.33 per pay period. (No change from 2010 to 2011)

In 2010,
Federal Tax withholding: 200.26 (from IRS tables)
Social Security Tax: 140.25
"Take Home": 1401.15

In 2011,
Federal Tax withholding: 213.54 (increase of $13.28)
Social Security Tax 103.58 (decrease of $36.67)
"Take Home": 1424.54 (net increase of $23.39)

[elleng]

7. Gotcha, thanks, so its the SSTx 'decrease' allows this.

[montanacowboy]

3. YEP, HAPPENED TO ME

FEDERAL TAXES WENT UP!

I AM SO GRATEFUL THAT THE RICH GOT THEIR GODDAMN TAX CUT, AND WHAT DID I GET?
THIS DAMN TAX INCREASE.

HOW MANY OTHER PEOPLE ARE AWARE OF THIS? BECAUSE IT HAPPENED SIMLULTANEOUSLY WITH THE FICA CUT, PEOPLE WON'T NOTICE IT. FOLKS, YOU NEED TO BE AWARE OF THIS.

[CC]

4. That was pretty well publicized

when the tax deal was done. GOP would not budge on the "Making Work Pay" tax cut.

[RobertSeattle]

6. Publicized, but don't think it had "sunk in"

I think we'll be hearing more about this in the news as regular people check their paychecks.

But if you are a Journalist making 75K or more you might not care...

[Frustratedlady]

8. Yep, my pension check for 2011 is over $20 less than 2010 per month

And I didn't get an increase to cover it, either.

[JVS]

9. Not catching this and re-working the numbers is not very slick of the administration