Million to Take Home Less From Tax Cut Deal

On December 22, 2010, in Uncategorized, by jellybellyhoo

The new tax cut deal will see around 51 million people take home less money this year either from a higher tax bill or lower tax return. The average amount these families will be out is $203.

NEW YORK (CNNMoney.com) — Despite a sweeping tax cut deal that is supposed to keep everyone whole financially, if not better off, 51 million households will face a higher tax bill or a lower refund compared with this year.

The main culprit: a new payroll tax break that will not be as generous for many low- and middle-income households as the tax cut it is replacing.

The tax legislation that President Obama signed into law on Friday, will for one year reduce workers’ Social Security taxes. Workers pay 6.2% on their first $106,800 of wages. The tax cut deal will reduce that to 4.2%.

That payroll tax “holiday” will replace the Making Work Pay credit, which expires Dec. 31 and was part of the 2009 Recovery Act.

As a result, 51 million… continue reading

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Columbia To Give Free Tax Help

On December 21, 2010, in Uncategorized, by jellybellyhoo

In Columbia, the CAP and AARP are teaming up to offer people free tax help. The organizations want to help people take advantage of tax breaks they are eligible for.

Lower Columbia Community Action Program (CAP) and trained AARP Tax Aide volunteers will provide free tax assistance to filers of all ages and incomes from Jan. 15 through April 18.

Once again this year, CAP and AARP are encouraging people to claim the Earned Income Tax Credit, which is a tax break for qualifying people who work but have low wages.

“Many workers are eligible for this tax credit and don’t know it,” according to Liz Myntti, program manager at CAP’s Financial Independence Center.

She encourages individuals who earned less than $43,352, and couples who earned less than $48,362, to see if they qualify. Taxpayers do not have to have children to claim the Earned Income Tax Credit, she added.

This year AARP tax aides will be at three sites in the area: from 12:30 to 4:30 p.m. Fridays and Saturdays and 4:30 to 7:30 p.m. Tuesdays at… continue reading

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