News for Seniors

posted Oct 10, 2012, 11:17 AM by Friends of the Seymour Center

2013 KEY MONEY CHANGES

 

Potentially painful changes in federal tax and benefit rules are scheduled to take place at the beginning of next year. 

 

All taxpayers would see higher taxes--the lowest rate of 10% would disappear altogether, and the new bottom bracket would be 15%.  The top tax bracket of 35% would be replaced by a 39.6% tax bracket.  Social Security payroll taxes of 4.2% for the past two years will be revert back to 6.2%.  Extended jobless benefits are set to expire.  The estate and gift tax exemption will drop to $1 million, and the tax rate on transfers above the exemption ceiling would rise to 55% from 35%.  Medicare payroll tax on amounts for individuals making more than $200,000 in wage income ($250,000) for couples) would see their Medicare payroll tax on amounts above these levels rise to 2.35% from 1.45%.  They would also pay a 3.8% tax on net investment income.  Lastly, taxpayers who itemize their returns would be able to deduct only those unreimbursed medical expenses that exceed 10% of their taxable incomes, up from 7.5% now.  This higher threshold will not apply to taxpayers 65 and older until 2017.

 

2012 TOWN TREASURES HONORED

Meet the 2012 Town Treasures 5:30-7:30 p.m.,Wednesday, October 17, 2012, Seymour Center Auditorium, at a special reception to honor the good deeds and generous contribution made to our community by Joyce Brown, Jim and Betsy Bryan, Delores Clark, Alice Gordon, Kimball and Harriett King, Everett Lloyd, Joe Nassif, Lindy Pendergrass and Thelma Perkins.  The public is invited and refreshments will be served.

GRANDMA'S COLLEGE DEBT

 

Tens of thousands of retirees have fallen behind on student loans--and the feds are coming after their Social Security benefits.  From January through August 6, 2012, the government  reduced  the size  of  roughly 115,000 retirees' Social Security checks.  The amount that the government withholds varies widely, though it runs up to 15%.  The majority of the borrowers went into debt later in life to help defray education costs for their children or other dependents.  Other retirees took out federal loans when they returned to college in midlife.

 

DONATE TO THE TREASURY

 

Legislation has been suggested to create a checkbox on tax forms allowing taxpayers to make donations above their normal tax liability for debt reduction.  The bill has been named the Buffett Rule Act after investor Warren Buffett and offers a simple way for people concerned about the debt to contribute.  Now people must either send a separate check or money order to the Bureau of Public Debt or go online to use a credit card. Donations to pay down the national debt are tax deductible under current law.  The IRS already has a checkbox on its income tax form for making a $3 contribution to the presidential election campaign fund.

 

 

 

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