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President Obama signs the Middle Class Tax Relief and Job Creation ActFebruary 23, 2012
President Obama has signed the Middle Class Tax Relief and Job Creation Act into law that keeps the Social Security rate at 4.2% of the first $110,100 of wages through 12/31/2012. The President wanted the extension because it would provide the average taxpayer with an extra $40 in a typical two-week paycheck. The original payroll tax cut in effect last year reduced Social Security withholding taxes from 6.2 to 4.2%.
A taxpayer earning $110,100 or more will see $2,202 more in their take-home pay as a result of the extension. For those taxpayers earning $20,000 or more, the 2% reduction more than makes up for the $400 Making Work Pay Credit that expired at the end of 2010.
Phishing AttacksFebruary 20, 2012
Beware of emails claiming to be from the IRS. The IRS does NOT communicate with taxpayers via email. An email with with the IRS logo doesn't make it legitimate.
If you get an email that appears to be from the IRS and it has a link for you to click, chances are that it contains a virus or worse … they want your bank account information. The real IRS wants to know so, forward suspicious emails to Phishing@IRS.Gov