Journal Express, Knoxville, IA

Local News

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
Local News
  • Jacobs photo Mark Jacobs running for U.S. Senate Prior to a sitting down for coffee with a group at Pizza Ranch in Pella Monday afternoon, Republican US Senate candidate Mark Jacobs opened up about his ambitions for the office, and why he believes he is the best choice over his competitors. Jacobs

    April 24, 2014 1 Photo

  • Council-accident pic 1 City agrees to cover some costs Following a closed session Monday night, the Knoxville City Council voted to cover a local family's insurance deductible, and a portion of any rental car fees incurred, after a City-owned traffic light fell on the family's vehicle on March 27. The fa

    April 24, 2014 2 Photos

  • Kimpston-Burkgren pic Knoxville officer completes training The Knoxville Police Department is currently staffed, as Officer Joel Kimpston-Burkgren graduated from the Iowa Law Enforcement Academy late last week. Kimpston-Burkgren, 23, is originally from Perry. He was hired by the KPD in November 2013, prior t

    April 24, 2014 1 Photo

  • Flaws pic Flaws takes over Pleasantville Rec The City of Pleasantville's new recreation director, Jordan Flaws, realized early on that cubicles were "not (his) thing," and chose to pursue a career that includes his athletic roots. Flaws officially took over the position a few weeks ago. He fill

    April 24, 2014 1 Photo

  • SOAR photo Helping birds on a wing and a prayer Protective gloves aren't uncommon when dealing with a sick patient, though they're not usually heavy, leather welder's gloves. But, then, the patient usually doesn't have toenails designed to puncture flesh. Or a sharp beak. Diane Massick stepped out

    April 24, 2014 1 Photo

  • Raceway rebate passed in Senate The Iowa Senate has approved the Knoxville Raceway rebate, 39-10.

    April 23, 2014

  • raceway concept drawing.jpg Senate Committee advances Raceway Rebate

    The Iowa Senate Ways and Means Committee advanced HF2464, a bill intended to rebate up to $2 million in sales tax back to the Knoxville Raceway, this afternoon. 

    April 22, 2014 1 Photo

  • Street guys.jpg Video: Bank treats workers to lunch

    City workers and streetscape contractors were treated to a free lunch on Tuesday, courtesy of Iowa State Savings Bank. 

    April 22, 2014 2 Photos 1 Video

  • Megan Suhr.jpg Suhr to host campaign kick off event
    Megan Suhr, Candidate for Iowa House District 28 will hold a Campaign Kick-Off event on Sunday, April 27, from 2-4 p.m. The event will be held at Red Ribbon Bakery, 112 N 2nd Street, in Knoxville. This is a free event, and is open to the public.  
     

    April 22, 2014 1 Photo

  • JJ Dinner-Loebsack.jpg Loebsack's office offers internships

    Congressman Dave Loebsack today announced that his office is now accepting applications from Iowa college students to participate in a Congressional internship program in his Washington, D.C. office.

    April 22, 2014 1 Photo

Features
Facebook
AP Video
Hyperlocal Search
Premier Guide
Find a business

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

Should more time and money be invested in Knoxville's City Parks?

Yes
No
     View Results