What the fiscal cliff means for you - FOX13 News, WHBQ FOX 13

What the fiscal cliff means for you

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MEMPHIS, Tenn. (FOX13) -

As the President makes his way back to Washington and Congressional leaders resume talks on the fiscal cliff, many people are preparing for the worst.

With no deal in sight, understanding how the various plans will impact you is critical.

MORE: Fiscal Cliff: Questions and Answers
MORE: No deal in sight as deadline for fiscal cliff nears

Here's a look at how much your taxes will increase if we do go over the fiscal cliff from the Tax Policy Center:

Families making below $10,000 a year will pay an average of $300 more in taxes a year ($25/mo.).

Those who make between $40,000 and $50,000 will have to pay an extra $1700 a year ($142/mo.).

Earners making between $50,000 and $75,000 will pay an extra $2300 a year ($192/mo/.).

And if you manage to make over $200,000 you can expect to pay an additional $14,000 in taxes ($1170/mo.).

MORE: Tax Policy Center Tax Calculator

Investment advisors say the money you have left won't go as far as businesses deal with their own tax hikes.

In addition, the Federal Government also will have to bite the economic bullet with $1.2 trillion in automatic spending cuts.  More than half of those cuts come from the defense budget.

Experts say families may need to do look at their budgets before making big purchases.

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