As expected, the Internal Revenue Service (IRS) has acted quickly to create new 2013 income tax withholding tables based on the American Taxpayer Relief of 2012 passed and signed into law by the President this week.
The 2% cut in Social Security Tax will not be extended into 2013. The Tax Rate will increase for Single taxpayers with taxable income over $400,000 per year and Married taxpayers with taxable income over $450,000/year. Those rates will increase from 35% to 39.6%.