BOISE -- Tuesday night, the House passed a debt bill that now awaits the president's signature. The bill prevents an increase to middle-class families' income taxes. But the question is how will this impact you?
Just about all of the talk about taxes has been over the income tax, raising it on the wealthiest of Americans, while having them stay put for middle-class families.
While that's true, if you get a paycheck in 2013, no matter your income, you're going to pay more in taxes.
Thanks to the votes of Democrats and Republicans in Congress, I will sign a law that raises taxes on the wealthiest 2 percent of Americans, while preventing a middle-class tax hike that could have sent the economy back into a recession, said President Barack Obama.
While that's true for income taxes, another tax is going up.
For Idaho families, the main thing is, that they didn't extend the temporary 2 percent reduction in Social Security tax, said Mike Chakarun with the Idaho State Tax Commission. That seems to be somewhat under played in the grand scheme of things.
That rate will jump from 4.2 percent to 6.2 percent.
It was a temporary reduction to kind of stimulate the economy in the last couple of years, but it was never meant to be permanent, said Chakarun.
It affects every Idahoan who gets a paycheck in 2013.
So if you make about $30,000 a year in 2013, you're going to see your Social Security tax go up by $600, said Chakarun.
The Tax Policy Center, a nonpartisan Washington research group, estimates that 77 percent of American households will face higher federal taxes in 2013.
Between the new tax package and President Obama's health care law, families making between $500,000 and $1,000,000 will see an average tax increase of $14,812.
The rank and file workers, other than the Social Security tax change, they're probably not going to see a whole lot of change, but it's going to be the higher income earners that will have an affect, a more direct affect, said Chakarun.
Bottom line, starting Jan. 1, 2013, you will pay two percent more of your paycheck to taxes, regardless of your income level. Families making over $450,000 will see their income tax rate jump from 35 percent to 39.6 percent.
One other part of the new deal puts back into play a tax deduction for Idaho teachers. For 2012 taxes, teachers can now deduct up to $250 of expenses made on classroom supplies.