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Hey there, this is Bart Zandbergen with your Financial Freeway minute.

So, the first payday of 2013 for most Americans won’t be as small as it could have been. But, as paydays come in the weeks ahead, make now mistake, paychecks will be smaller. All working Americans wills see their take home pay cut by 2%.

While congress approved a deal not to raise income tax rates on Americans earning under $400,000 ($450K couples), the agreement did not extend the employee payroll tax cut that has been law for the last two years. Instead, every worker will see the part of their paychecks going toward Social Security return to the same percentage it was before 2011.

Other changes for earners under $400K are:
Your Maximum long term cap gains and dividend tax is 15%

And What if you earn over $400K?!
Your maximum income tax rate is now 39.6%
Your Long Term Capital Gains tax and Dividend tax rate is now 20%

If you earn over $250K ($300K household), you will see a phase out of your itemized deductions.

Lastly, the tax on Estates will rise to 40% maximum rate, with a permanent exemption of $5M, indexed for inflation.

What does this mean for you? Meet with your Financial Advisor to determine what YOU can do to be best positioned for the results of this Fiscal Cliff.

This has been Bart Zandbergen, your GPS on the Financial Freeway…