The Internal Revenue Service released new income tax withholding tables for 2013 late Monday to reflect the expiration of the 2001 and 2003 Bush tax cuts and the more recent payroll tax cuts of 2011 and 2012, but noted that the guidance would be modified if Congress acts. (Note: Since this story was written, fiscal cliff legislation was, in fact, passed, and the IRS updated the income tax withholding tables again; see "IRS Updates Withholding Guidance for 2013.")
The Senate passed legislation in the early hours of Tuesday morning on New Year’s Day to extend income tax cuts for single taxpayers earning under $400,000 a year and married couples under $450,000 a year (see Senate Approves Post-Midnight Fiscal Cliff Deal, Shifting Pressure to Boehner). Under the deal approved by the Senate, the top rate for income above those levels would rise to 39.6 percent, up from 35 percent.
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