Are you sick of the political adds yet? Just think…only a month and a half to go! Taxes are one of my favorite topics (lame…I know…) and I had to give strong consideration to facts being thrown around by each candidate about their tax plans. I don’t want to get into a political debate here, but simply want people to wake up and understand how taxes work.
Tax rates are not the only thing to pay attention too!
So many people get caught up on _____ (insert favorite politician) is going to raise/lower taxes on this class of people. Wake up! Taxes come from everywhere!
Do you have a Flexible Spending Account (FSA) at work? Well in 2013 the most you can add to your FSA will be reduced to $2,500…(see article below)
So if last year you put in $5,000 and got a full tax deduction and this year you can only put in $2,500 isn’t that just a way to make you pay more in taxes without raising your actual tax rate.
Have you ever had to pay Alternative Minimum Tax (AMT)? Don’t know? HINT: If there is a number on line 45 of your tax return you are paying it. Again, another way to institute tax policy without upsetting the masses.
Are you or your parents having to pay taxes on your Social Security income? Another hidden tax!
The list goes on and on…Come on middle-class! Don’t be fooled into thinking it is just about the tax brackets…
What hidden taxes are you paying?