The Internal Revenue Service released new withholding tables to reflect the 2013 tax rates that President Barack Obama signed into law yesterday.
For most workers, that will mean little change, because Congress reinstated the marginal tax rates that were in place for all except 0.7 percent of taxpayers -- those with annual taxable income exceeding $400,000 for individuals and $450,000 for married couples.
In a statement today, the IRS instructed employers to make the change as soon as possible and no later than Feb. 15.
The biggest difference for many taxpayers will come from the expiration of the 2 percentage point cut in the payroll tax. A worker making $50,000 a year who is paid twice a month will have $41.67 more withheld than in 2012.
The IRS hasn’t made an announcement about the opening of the 2013 tax filing season. The late legislative action may cause a delay from the scheduled January start, because Congress retroactively reinstated a provision that shielded 28 million households from the alternative minimum tax.
To contact the reporter on this story: Richard Rubin in Washington at email@example.com
To contact the editor responsible for this story: Jodi Schneider at firstname.lastname@example.org