You and Your Money
Tax Cut Calculator
Photo: White House tax break
At the end of last year, the President signed a law that kept the 2001 and 2003 middle-class tax cuts from expiring - preventing the typical working family from facing a tax increase - and extended unemployment insurance to ensure at least 7 million Americans don’t lose their benefits as they search for jobs. In addition, the President fought for and passed a payroll tax cut that is already showing up in paychecks and additional tax cuts that apply to taxes for 2011 - these are the focus of this calculator.
The savings from the middle class tax cuts that the President kept from expiring beyond this calculator shouldn’t be overlooked, though. Those benefits require more detail about your individual tax liabilities to determine precisely, but to give a sense of the tax cuts received by a typical family just by extending those tax cuts:
* A typical married couple with two kids earning $40,000 received an additional $2,640
* A typical single mother with one kid earning $30,000 received an additional $1,110
* A typical married couple with three kids earning $75,000 received an additional $2,640
* A typical married couple with no children earning $50,000 received an additional $1,140
And extending these middle class tax cuts was only part of what the December tax deal did for middle-class families to help provide a boost to their pocketbooks. Click on to learn more about which of these tax cuts you might be receiving.
Please note: this tool is intended to be educational. Taxpayers should not rely on it for determinations about their eligibility for tax benefits, but should consult the relevant IRS forms and instructions or a qualified tax professional.