Opens in a new tab

Calculate your possible fiscal cliff tax bill

November 17, 2012

How optimistic are you that the White House and Congress will cobble together a deal to keep the U.S. economy from falling off the fiscal cliff on Jan. 1, 2013?

I'm hedging my bets and predicting a short-term deal (six months or maybe a year) by year's end that would keep the worst from happening but not really make anybody happy. We are, after all, at the mercy of politicians.

I hope I'm wrong. I hope both sides can agree to something a little more permanent, whatever that means on Capitol Hill.

And I really hope that whatever the decision, it comes in time for all us taxpayers to make some end-of-year tax moves.

In the meantime, you can divert yourself by checking out what your tax bill might be if we all go tumbling like lemmings over the fiscal cliff.

Paycheck City has created a calculator where you select your filing status and the number of allowances you can claim and it tells you what your tax bill will be under possible 2013 tax rates.

In the example below, a married couple with one dependent will see a $5,079 increase in their tax bill.

Fiscal Cliff tax calculator from PayCheckCity Click image to go to PaycheckCity.com's fiscal cliff calculator.

That tax bill, however, is a bit high.

Note that the calculator doesn't take into account any deduction amount, either standard or itemized.

Neither does it include other possible tax-saving breaks, such as the child tax credit, assuming that the couple's third exemption is a minor dependent child. Even if we fall off the fiscal cliff, the child tax credit will still be around, just at $500 per child instead of the Bush-era tax law increase to $1,000 per kiddo.

Still, the calculator does give you a rough idea of your potentially higher tax bill if our lawmakers aren't able to steer us away from the impending tax precipice.

You also might find these items of interest:

Share:

The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

Latest Posts
confused office worker
8 workplace benefits questions to ask this enrollment season

October 26, 2026

Millions of U.S. workers are now deciding what workplace benefits, some of which also offer…

Read More
TAX-SAVVY WAYS 
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments
Leave the first comment