Brian Wynne, CPA

Congress has come to an agreement on extending the payroll tax cut, and the deal is expected to be approved by the end of this week.  The agreement would leave in place the 2% reduction (from 6.2% to 4.2%) in Social Security tax paid by workers for the remainder of 2012.  It had previously been reduced only for the first two months of 2012.  Social Security tax is paid by US workers on up to $110,100 of their wages this year, so the reduction can save a taxpayer up to $2,200 this year.

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