Greg: This is PKF Texas, the Entrepreneur’s Playbook. I’m Greg Price, director of Consulting Solutions, and I’m here with Tina Winograd, a payroll specialist in our accounting department at PKF Texas. Tina, welcome to the Playbook.
Tina: Thank you, Greg.
Greg: So Tina, it’s after the election. Will my taxes go up in 2013?
Tina: Unfortunately, the answer to that is probably. Many Bush-era tax cuts will expire at the end of this year and with the presidential elections now over and the previous administration still in office, we feel somewhat comfortable with the tax path for next year.
Greg: So what kind of changes are going to be happening for 2013?
Tina: Unless Congress takes steps to extend the time limits, one of the major things would be that the 10% bracket will be dropped and thresholds for those in the cusp will probably up to the next bracket. Now I’ll give you an example. Like for 2012, a family making $72,000 dual income will probably be around the 15% bracket; but next year with no changes, then a dual-family income with about $60,000 will be put into the 28 percentile; and the highest bracket at 35 will probably go to 40.
Greg: Wow. Those are some pretty big changes coming forward. So what’s going to be the dollar impact in general for most families?
Tina: For the typical single worker it will be about $1,000 but for high-earning, dual-income families it could be as much as $4,500.
Greg: Well, that’s certainly different from before, isn’t it?
Tina: Yes.
Greg: So Tina, we’re going to have you back to talk some more ’cause there’s a lot more going on in payroll taxes. Will you join us in the future?
Tina: Absolutely.