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More 2013 fiscal cliff tax calculating

January 5, 2013

While we're waiting for the Internal Revenue Service to update tax forms and publications and reprogram its computers to mesh with the new fiscal cliff tax bill changes, we can entertain ourselves by running some numbers in connection with our 2013 taxes.

Last week I mentioned the Tax Foundation's fiscal cliff tax law changes calculator.

I also just ran across the Tax Policy Center's update of its online numbers cruncher.

The TPC folks have plugged in the American Taxpayer Relief Act (ATRA) of 2012 data.

As in its earlier calculator versions, the Tax Policy Center has created sample taxpayers that are representative of many families
and individuals in specific income and demographic groups.

Tax Policy Center fiscal cliff ATRA calculatorClick on image to go to the TPC tax calculator page.

You can use those examples — and I just have to say again how much I love those graphics! — or make your own changes to the sample filers' incomes and expenses.

With the enactment of ATRA — it was signed into law by the president's autopen on Jan. 3 since he had gone back to Hawaii to finish up his holiday vacation with his family — you can get an idea of how those new tax provisions, as well as the old tax laws that were renewed, will affect your 2013 taxes.

You also can look at what might have been if the 2012 law with alternative minimum tax (AMT) patch and all of the 2001-2003 and 2009 stimulus tax provisions had been put in place instead.

Or you can check out the effect on your tax bill if the pre-fiscal-cliff laws, including the expiration of most of the Bush tax cuts (are the rates retained in ATRA now the Obama tax cuts?), the new taxes associated with healthcare reform and no AMT patch or payroll tax cut were on the books.

Whew! That is a whole lot of tax scenarios.

But there's one more.

Don't forget the payroll tax's return to 6.2 percent. Starting on Jan. 1, that amount instead of 4.2 percent is once again taken out of worker's paychecks.

The Wall Street Journal's Real Time Economics blog has a calculator that will let you see what damage the 2 percentage point tax increase will do to your take home pay.

I know what I'll be doing the rest of my Saturday!

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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. 

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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.)

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