Middle class tax hikes in store for 2013 - 13abc.com Toledo (OH) News, Weather and Sports

Middle class tax hikes in store for 2013

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TOLEDO, Ohio -

Tuesday is the deadline to file last year's taxes, and we have an early warning about next year. Some of those deductions you count on won't be available in 2013. If you're a school teacher or a parent, if you're married, or if you're thinking of buying an energy-efficient water heater, your taxes are going up.

Despite extending the Bush tax cuts two years ago, President Obama has promised to repeal that package of savings. That means a variety of cuts and credits you depend on could be gone in 2013.

For instance, the payroll tax cut lawmakers extended in February expires next year. That will add up to $2,200 to your tax bill.

If you're married, joint filers will likely pay hundreds of dollars more.

If you're a school teacher and you spend your own money for school supplies for your class, as of now, you can get a $250 tax deduction. Starting next year, it will be gone.

You will only be able to deduct $500 for each child next year, down from $1,000 this year.

Half a trillion dollars in tax hikes are in store next year, including the elimination of a tax credit to install an energy efficient appliance.

Ignoring political rhetoric, the good news is lawmakers will probably find a way to save the more popular Bush tax cuts.

"Tax rates may go up, but the elimination of the marriage penalty will stay, or the expansion of child tax credit will stay," says economics professor Ghenga Ailore.

The president wants Congress to pass the Buffet rule on millionaires and billionaires.

But the Buffet rule would only raise $4 billion a year. The national debt is going up $4 billion a day.

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