"In the week ending November 10, the advance figure for seasonally adjusted initial claims (for unemployment benefits) was 439,000, an increase of 78,000 from the previous week's revised figure of 361,000." -US Dept of Labor
Friends, the headlines will keep coming…as usual.
What do you think the next headlines will be? More on Patraeus? More on Hostess? More on the "Fiscal Cliff"? Sequestration? Israel?
Think about what the tangible impact will be on your personal budget as "the changes" take place in 2013 as it relates to TAXES. They will have an impact on the economy in the form of a direct hit to the pocket book of most every Americans (regardless of income). Fortunately, much of the impact won't be felt until you file your 2013 taxes.. So, get ready. (just my opinion)
Here are just a few things that will impact me:
(1) Flex Accounts are reduced to $2500 (from $4000). This account is specifically used ONLY for medical expenses...and we have plenty.
(2)The "Child Tax Credit" will drop 50% from $1000 to $500. A credit directly reduces taxes...this means an automatic increase of $500.
(3) Medical insurance already costs ME ~$850 per month. It will go up as changes happen in the med insurance field.
I can and will adjust to pay any additional tax…but there are many people who will be surprised when they don't get the "refund". What they think they got, just is not so.
Are you prepared?
I have also been concerned that this AMT tax will take the legs out from under my family…I've not been able to clearly understand this magical calculation but I've heard some horror stories. (Don't think I make enough.)
If you're not careful it could take yours out from under you too. Definitely ask your CPA about this if you're part of the gang that makes under $100k with few deductions. It's not hype. It would take my taxes from like 5%-10% to like 26%.
My personal "sequestration" begins now!
Jay
