Posted on Feb 15, 2011 in Saving
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This posting is the good news/bad news of the 2011 tax year, particularly for Illinois residents.
The good news? As part of the tax compromise passed during the lame duck session, Congress included a 2% reduction in the rate of Social Security tax collected from individuals. Normally, 6.2% of your pay up to a maximum level of $106,800 goes to Social Security Retirement funding. In 2011, this rate is reduced to 4.2%. You should already see this reduction in your paycheck. If your earned income is $80,000, you’ll “save” $1,600 in taxes this...