You'll pay more in social security taxes this year, but how much - KAIT Jonesboro, AR - Region 8 News, weather, sports

You'll pay more in social security taxes this year, but how much?

TYLER, TX (KLTV) -

In 2013, Americans will pay more in social security taxes than they did last year.

In 2012, everyone put 4.2 percent of their income toward social security. This year, 6.2 percent of your income will go into the pot.

That's because the FICA tax rates that were in effect prior to 2011 have been reinstated.

Congress gave Americans a break on social security taxes when the economy tanked, but now that it's recovering, those pre-recession social security tax rates are reverting to what they were before.

"It's really what they were paying prior to two years ago. It's an increase in withholding from their paycheck, but it's not really a tax increase because they were paying the same rate prior to two years ago," says Maureen Parkhill, co-owner and manager of Liberty Tax Service in Tyler.

Parkhill says the lower tax rate was always temporary and was intended to boost the economy.

"People got used to having some extra income, and now they're going back to where it was a couple years ago," says Tyler Chamber of Commerce President and CEO Tom Mullins.

Mullins doesn't expect to see the reinstated tax rate hurt the local economy, but it won't go unnoticed.

"It'll be interesting to see over the first couple of months... that people will cut back some of their spending," says Mullins.

Calculating how much more you'll be paying in social security taxes this year is simple. Take your salary and multiply it by .02. For example, somebody who makes $30,000 can now expect to pay $600 more this year in social security taxes than they did last year. To look at that monthly, divide by 12 and you get $50. That's how much less you'll be bringing home each month than you were before.

"People are very strict about their budgets, what they're taking home [and] what they can spend it on. It's usually allocated every single month. They don't have a lot -- if anything-- left over. So, to have an additional $50 or $60 dollars, taken out, it has an  impact. It will be felt by a lot of families," Mullins says.

The average household income in East Texas, using 2012 data available from the counties, is just under $38,000.

The reinstatement of the tax rate means the average East Texas household will pay about $63 more a month in social security taxes.

Copyright 2013 KLTV. All rights reserved.

  • Region 8 News</span><a class="customMoreLink" href="/Global/category.asp?C=4391" target="_top">More >></a>Region 8 NewsMore>>

  • Storm causes building collapse, trapping 2 people

    Storm causes building collapse, trapping 2 people

    Sunday, May 20 2018 8:41 PM EDT2018-05-21 00:41:35 GMT
    Sunday, May 20 2018 8:46 PM EDT2018-05-21 00:46:07 GMT
    (Source: Earle Fire Department via Facebook)(Source: Earle Fire Department via Facebook)
    (Source: Earle Fire Department via Facebook)(Source: Earle Fire Department via Facebook)

    The Earle and Crawfordsville Fire Departments responded to a building collapse that trapped two people in Crittenden County Sunday.  

    The Earle and Crawfordsville Fire Departments responded to a building collapse that trapped two people in Crittenden County Sunday.  

  • Slideshow: May 20 storms

    Slideshow: May 20 storms

    Sunday, May 20 2018 4:27 PM EDT2018-05-20 20:27:33 GMT
    Sunday, May 20 2018 7:23 PM EDT2018-05-20 23:23:43 GMT
    A severe storm moved through Lawrence County Sunday south of Hoxie, looking south on Highway 91. (Source: Hatton Weeks via Twitter)A severe storm moved through Lawrence County Sunday south of Hoxie, looking south on Highway 91. (Source: Hatton Weeks via Twitter)

    A series of storms pushed heavy rains, winds and hail into Region 8 Sunday afternoon. 

    A series of storms pushed heavy rains, winds and hail into Region 8 Sunday afternoon. 

  • Man arrested in Randolph County hit and run

    Man arrested in Randolph County hit and run

    Sunday, May 20 2018 5:59 PM EDT2018-05-20 21:59:13 GMT
    Sunday, May 20 2018 7:01 PM EDT2018-05-20 23:01:34 GMT
    (Source: KAIT)(Source: KAIT)

    Authorities have one person in custody in connection with a hit and run incident involving a vehicle and a bicycle Sunday afternoon in Randolph County. 

    Authorities have one person in custody in connection with a hit and run incident involving a vehicle and a bicycle Sunday afternoon in Randolph County. 

Powered by Frankly