Journal Express, Knoxville, IA

Features

December 4, 2012

Low-income households to be hit with tax increases

Knoxville — National news outlets are awash in reports on the "fiscal cliff" coming in January 2013 if Congress and the President fail to act. Lee Franck with Knoxville's H&R Block shared some key tax changes that are certain to impact local households, and what is coming in the next few years with the "Affordable Care Act." 

According to Franck, the Alternative Minimum Tax will increase in 2013 and will cost an average household $2,000-3,000 more in taxes. These figures are for households that range in income from $50-100,000. The increases will be worse for those families who itemize their deductions on tax day. 

Current tax rates, set during the Bush Administration and continued through the Obama Presidency, are set to revert to those levels prior to 2001. Rates would increase from 10, 15, 25, 28, 33 and 35 percent to 15, 28, 31, 36 and 39.6 percent. For the lowest income earners, seeing one's tax liability jump from 10-15 percent is equivalent to a 50 percent tax increase. 

For those who have investments and receive dividends, the capital gains and dividends rates will increase from 0 and 15 percent, to 10 and 20 percent. There is potential that the top capital gains recipients could see their rates go over 20 percent. 

This will affect those who sell property in 2013. Franck has been advising his clients to sell property before the end of the year, to avoid paying these higher rates. 

Other tax credit changes that could hit Marion County families include the Earned Income Tax Credit and the child tax credit (reduced from $1,000 per child to $500). 

 

A great deal of discussion is held regarding tax increases to those households that earn $250,000 or more, while protecting lower earning Americans. However, people in the $250K pay range do not take advantage of these credits, so those who will feel the effects of the expiration of these tax laws have lower incomes. 

Text Only
Features
  • large group.jpg Video: Celebrate packages 30,000 Meals from the Heartland

    Over 340 volunteers worked together Sunday morning to package 30,000 Meals from the Heartland at Celebrate Community Church. 

    March 23, 2014 1 Photo 1 Slideshow 5 Videos

  • pre event setup.jpg Slideshow: Celebrate Church packages Meals from the Heartland Scenes from Celebrate Community Church's packaging of Meals from the Heartland on Sunday, March 23, 2014

    March 23, 2014

  • little firsherman on the rocks.jpg Spring arrives in Marion County in style

    The first day of spring, March 20, truly had the appropriate weather. Sunshine and a nice temperature sent many people into the outdoor of splendor of Lake Red Rock. 

    March 20, 2014 5 Photos

  • Wesley & Jessica.jpg One special prom date

    Prom night has long been a rite of passage for American high school students. Knoxville High School Prom 2014 will include one couple that no one ever expected to have the ability to take part. 

    March 15, 2014 1 Photo

  • Dixie Gebhardt Plans underway for Iowa State Flag Day

    Details are still being finalized, but the Birthplace of the Iowa State Flag will celebrate the flag's special day on March 29. 

    March 15, 2014 1 Photo

  • West jump rope pic.jpg West Elementary raises $4,800 for American Heart Association

    Students in grades KinderPrep through First at West Elementary have jumped their way to raising $4,800 for the American Heart Association. 

    March 14, 2014 1 Photo

  • TC FFA 2.jpg TC FFA receives financial gift

    Rhonda Van Rheenen won a contest sponsored by the Monsanto Fund. As a result, the Twin Cedars FFA received a check for $2,500. 

    February 28, 2014 2 Photos

  • eye exam.jpg Video: Knoxville VA offers telemed services

    Medical services offered by the VA Central Iowa Health Care System have expanded to include the use of telemedicine. Benefits include home access to medical services and less time on the road for veterans to meet with care providers. 

    February 27, 2014 3 Photos 2 Videos

  • B&B3.jpg Cast, crew preparing for "Beauty and the Beast"

    Work continued behind the scenes of the Knoxville High School musical production of "Beauty and the Beast" on Saturday. Cast, crew, parents and supports alike have all come together to prepare for the first high school production inside the Knoxville Performing Arts Center. 

    February 22, 2014 7 Photos

  • Dr Andrew Green.jpg Central to host Political Science convention

    Political Scientists from throughout the state will be coming to Marion County next weekend, as Central College hosts the Iowa Association of Political Scientists' annual convention and program. 

    February 20, 2014 1 Photo

Features
AP Video
Obama Offers Condolences at Dutch Embassy Michigan Plant's Goal: Flower and Die WWII Vet Gets Medals, 70 Years Late Weather Gives Washington Firefighters Hope Veteran Creates Job During High Unemployment Widow: Jury Sent Big Tobacco a $23B Message $5M Bond Set for Teens in Homeless Killings New Orleans Plans to Recycle Cigarette Butts UN Security Council Calls for MH 17 Crash Probe Obama Bestows Medal of Honor on NH Veteran Texas Sending National Guard Troops to Border Hopkins to Pay $190M After Pelvic Exams Taped Foxx Cites Washington 'Circus Mirror' NASA Ceremony Honors Moon Walker Neil Armstrong Obama Voices Concern About Casualties in Mideast Obama Calls for Immediate Access to Crash Site Obama Protects Gay, Transgender Workers US Teen Beaten in Mideast Talks About Ordeal Shark Sightings a Big Catch for Cape Tourism Native American Teens Get Taste of College
Facebook
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Poll

Upon completion and reopening of Third Street, should the City of Knoxville wait to start the next stage of the Streetscape and Infrastructure project until 2015?

Yes
No
     View Results