Long Island Financial Representative Addresses
MELVILLE, NY (Sharewellnewswire.com) December 19, 2012 — Americans across the United States continue to watch Washington for a resolution pertaining to the expiration of many tax laws and budget changes that have created the so-called “fiscal cliff.” With all eyes on congress, financial professionals such as local Paul Doyle, a registered representative of NEXT Financial Group Inc., are taking action to help their community members understand the implications and possible outcomes of taxes in 2013.
“Too many people are unaware about the tremendous impact the tax changes in 2013 will have on themselves, their businesses and their families,” said Doyle. “With the expiration of the Bush-era tax cuts combined with several provisions of the Budget Control Act of 2011, everyone will feel the hit, but few may know to contact their financial professional now for help in alleviating it in the future.”
One of the more talked about, yet not nationally known, is the payroll tax rate increase. Since 2009, the payroll tax rate was set at 4.2 percent. With its expiration comes a 2 percent hike. Every single working American earning a paycheck in the United States, regardless of tax bracket, will notice a decrease in income next year.
Another big change is the marriage tax, better known as the marriage penalty. In 2013, the standard deduction for married couples will be 167 percent of the single filer’s deduction rate rather than 200 percent. Since there will no longer be a 10 percent income bracket, the disparities between single and jointly filing couples will return.
Also, if your household is used to the $1,000 child tax credit—prepare to say goodbye. Each child tax credit will only be worth $500 and allowable care expenses will drop from a maximum of $3,000 to $2,400 for one child and $4,800 for two or more from the previous $6,000.
“I dedicate every day to helping my customers prepare for their future, and the looming fiscal cliff has made this commitment even more important,” said Doyle when addressing the necessity for tax clarity. “The country’s financial state and congress’ inability to come to a concrete conclusion is taxing—literally and figuratively. If any one finds they are in need of help in determining suitable steps or just want further clarification about what is happening, they should strongly consider speaking with a professional.”
Securities offered through NEXT Financial Group Inc. Member FINRA/SIPC. Neither NEXT Financial Group Inc. nor its representatives provide tax advice. Before taking any action, consult with your tax professional. Paul Doyle's office is located at 150 Broad Hollow Rd., Penthouse 3, Melville, NY 11747.