Fiscal Cliff Calculator
Congress may have averted the worst of the fiscal cliff with a last-minute deal Tuesday night — but your taxes are still going up.
If you're an average American worker, you'll see your Social Security payroll tax return to 6.2%, up from a lowered rate of 4.2%. For example: If you make an annual salary of $50,000 pre-tax, you'll be paying $1,000 more in taxes this year.
So why did this happen? The deal passed by Congress ends a two-year payroll tax holiday passed in 2010 in an effort to stimulate economic growth.
If you'd like an online tool to help plan the year's finances, you're in luck — the Wall Street Journal has an easy-to-use widget showing exactly how much less money you'll receive as a result of the higher payroll tax. Simply enter in your pretax income and the calculator does the rest.
Try it right here: Fiscal Cliff Tax Calculator.