What the fiscal cliff means for your family in the Ark-La-Miss - KNOE 8 News; KNOE-TV; KNOE.com |

What the fiscal cliff means for your family in the Ark-La-Miss

Posted: Updated:

MONROE, La. (KNOE 8 News) - Fiscal cliff talks have many wondering how the situation will affect you and your family. Congress is grid-locked over finding a solution to avoid what is being called "The Fiscal Cliff". The cliff refers to when Bush-era tax cuts will expire and new tax regulations set in.
If you don't think this affects you, think again.

If Congress fails to find a solution, taxes could go up for every single American including here in Ouachita Parish. "Considering the federal government and the deficits, most people will probably pay a little bit more," said Tim Green, who is a tax expert at Monroe based CPA firm, Allen, Green, and Williamson.

He says unless Congress acts, changes are in store. The most noticeable effect will be a smaller paycheck in 2013. That's when the federal government will take an extra 2% of your money for social security taxes.

"That's going to immediately impact everybody January first on their payroll checks," said Green. Income tax rates are also scheduled to rise. An internal study by Green's firm found the new rates will affect 10% of your taxable income.

That means a household making 50-thousand dollars will take home 1-thousand dollars less per year. On top of that, the child tax credit will be reduced by half, meaning you will get 500 dollars less for each child. These are only a few of the changes and while nothing is set in stone, until Congress acts, Green advises everyone to start saving money.

"The conservative approach would be to try to put a little aside to cover whatever the resolution with congress is and what they decide to do," said Green.

Congress has less than five days to come to an agreement before the tax hikes and spending cuts kick in. Green predicts there will be a delay in filing returns this tax season because the IRS is holding up on issuing tax regulations until congress settles on a solution.

  • Most Popular StoriesMost Popular StoriesMore>>

  • Grambling State senior found dead in Lafayette park ditch

    Grambling State senior found dead in Lafayette park ditch

    Monday, April 14 2014 1:24 PM EDT2014-04-14 17:24:57 GMT
    GRAMBLING, La. (KNOE 8 News)— The Grambling State University community is in shock by the death of a senior criminal justice major.
    GRAMBLING, La. (KNOE 8 News)— The Grambling State University community is in shock by the death of a senior criminal justice major.
  • Monroe Couple arrested for stealing from employer

    Monroe Couple arrested for stealing from employer

    Wednesday, April 16 2014 7:23 PM EDT2014-04-16 23:23:50 GMT
    MONROE, La. (KNOE 8 News) - KNOE 8 News has learned that Justin and Mary Ewing were employees at Vieux Carre in Monroe.
    MONROE, La. (KNOE 8 News) - KNOE 8 News has learned that Justin and Mary Ewing were employees at Vieux Carre in Monroe.
  • Shooting breaks out during basketball court fight

    Shooting breaks out during basketball court fight

    Shooting breaks out during basketball court fight

    Thursday, April 17 2014 9:13 AM EDT2014-04-17 13:13:38 GMT
    WEST MONROE, La. (KNOE 8 News) - Ouachita Parish Sheriff's investigators need the public's help finding a shooting suspect.Sheriff's deputies tell KNOE 8 News that two men were arguing at a basketball
    WEST MONROE, La. (KNOE 8 News) - Ouachita Parish Sheriff's investigators need the public's help finding a shooting suspect.
  • McAllister camp finally speaks

    McAllister camp finally speaks

    Tuesday, April 15 2014 4:20 PM EDT2014-04-15 20:20:37 GMT
    MONROE, La. (KNOE 8 News) - KNOE 8 News has received official word from Congressman Vance McAllister's office that he will return to Washington, D.C.
    MONROE, La. (KNOE 8 News) - KNOE 8 News has received official word from Congressman Vance McAllister's office that he will return to Washington, D.C.
  • Fight between step-brothers becomes deadly

    Fight between step-brothers becomes deadly

    Wednesday, April 16 2014 1:07 PM EDT2014-04-16 17:07:48 GMT
    BATON ROUGE, La. (KNOE 8 News/AP) - East Baton Rouge Parish sheriff's deputies say an altercation between two step-brothers turned deadly with one shooting the other.
    BATON ROUGE, La. (KNOE 8 News/AP) - East Baton Rouge Parish sheriff's deputies say an altercation between two step-brothers turned deadly with one shooting the other.
  • Shelton dies of accidental drowning

    Shelton dies of accidental drowning

    Tuesday, April 15 2014 10:17 AM EDT2014-04-15 14:17:37 GMT
    LAFAYETTE, La. (KNOE 8 News/AP) - Lafayette authorities have ruled out foul play in the death of a 21-year-old woman whose body was found in Girard Park over the weekend.
    LAFAYETTE, La. (KNOE 8 News/AP) - Lafayette authorities have ruled out foul play in the death of a 21-year-old woman whose body was found in Girard Park over the weekend.
  • Body found at Tallulah motel

    Body found at Tallulah motel

    Monday, April 14 2014 5:18 PM EDT2014-04-14 21:18:24 GMT
    TALLULAH, La. (KNOE 8 News) - A body has been found outside a Tallulah motel.
    TALLULAH, La. (KNOE 8 News) - A body has been found outside a Tallulah Days Inn motel.
  • Hart alleges wife made up kidnap story

    Hart alleges wife made up kidnap story

    Wednesday, April 16 2014 5:55 PM EDT2014-04-16 21:55:36 GMT
    MONROE, La. (KNOE 8 News) - A new development in the case against businessman Dean Hart Jr. Wednesday.
    MONROE, La. (KNOE 8 News) - A new development in the case against businessman Dean Hart Jr. Wednesday.
Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and KNOE. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.