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Your paycheck may look a little different in the New Year. An issue now facing W-2 earners is the FICA withholding moving from 4.2% back up to 6.2%. According to Patrick Hoffman, a local CPA with Barbich Hooper, King, Dill, Hoffman, it has historically been at 6.2% but, for 2011 & 2012, a discount for the employee portion was given as an economic stimulus plan. That discount was not extended into 2013. Is it raising taxes? Hoffman says yes, but raising them back to where they have historically been.

How does this impact your family finances? Hoffman gives this example, “If someone has gross earnings of $2,000, they will have $40 more FICA tax withheld from their pay than they would have had last year. If they are paid this amount semi-monthly ($4,000 per month), then at the end of the year they will have $960 more in FICA withheld from their wages, decreasing their take home pay.”

If you are an individual that makes more than $200,000 or are married and file jointly with your spouse and together earn more than $250,000, Hoffman says you may want to speak with your tax preparer regarding additional taxes that will be incurred in 2013, in addition to the FICA increase noted above.

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