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New Fica Tax Rate

December 19th, 2010 at 06:59 am

I was pleasantly surprised to read about the 2011 Fica Tax rate. It is going down from 6.2% to 4.2%. However, the Making Work Pay credit expires. That credit was worth $400. For some this will be a wash. Those who earn more than 20k will see a bump in their take home pay.

Now, how best to use it?

Posted in Budgeting, Income | 3 Comments »

3 Responses to “New Fica Tax Rate”

  1. creditcardfree Says:
    December 19th, 2010 at 04:03 pm 1292774587
    1292774587

    Yes...how to best use it. That is what I'm looking at, too. I might just save more for retirement this year.

  2. patientsaver Says:
    December 19th, 2010 at 09:51 pm 1292795510
    1292795510

    Yes, the payroll tax reduction is what Democrats got for the middle class in exchange for letting the millionaires keep the Bush era tax cuts. Of course, everyone who invests in mutual funds or stocks and bonds will benefit from the capital gains tax cut, but rich people will benefit the most.

  3. terri77 Says:
    January 3rd, 2011 at 03:41 am 1294026113
    1294026113

    I've already maxed out my retirement accounts. I'm changing my exemption from 1 to 0 to help with my tax bill next year. Hopefully, the payroll deduction will balance it out.

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