'Fiscal Cliff' affects paychecks, tax returns

WEST SPRINGFIELD, Mass. (WWLP) - Pay day is usually the best day of the week, but with the expiration of the payroll tax holiday, some were in for a shock.

Julie Mardner of Holyoke said, “When I looked at the gross that I had, I was surprised by how much was taken out."

Employees will now pay two percent more; enough to affect a household budget.

Mardner explained, “Everyone that balanced out what they're making and how they're paying their bills today they definitely woke up and were suprised."  :59

Those who file their taxes as soon as possible will have to wait a week longer this year.

Liberty Tax Area Developer Ray Maagero told 22News, “Because of the fiscal cliff, the IRS had to create all the forms that they need in order for preparers to do their tax returns and there have been some delays with that."

Tax preparers say they're ready now and you can come to them as soon as you get your paperwork, but they can't e-file them until January 22nd.

The good news for taxpayers is under the January deal most of the major tax credits were either restored or renewed.

Maagero said, “All of the credits and deductions that were put into place because of the Bush Tax Cuts and some of the Obama changes those are all going to move forward."

Tax preparers say combining all available tax cuts and others can help bring some income back to those who are struggling.