"Making Work Pay"

May 2009
3
Posted In:  taxes

It may benefit you to check your tax situation now before you find out next April that you owe Uncle Sam some more $, or that your expected IRS refund may not be as hefty as you hoped it would be.
 "Making Work Pay" is the cutesy name that they gave for this year's version of a tax rebate, but instead of sending out a check to all of us, they decided to reduce the federal income tax withholding rates as of 5/1/2009.   Reducing the current withholding rates may not be good for all of us. Check out how this will affect you and yours.

 Millions of Americans enjoying their small windfall from President Barack Obama's "Making Work Pay" tax credit are in for an unpleasant surprise next spring.
The government is going to want some of that money back.
The tax credit is supposed to provide up to $400 to individuals and $800 to married couples as part of the massive economic recovery package enacted in February. Most workers started receiving the credit through small increases in their paychecks in the past month.
But new tax withholding tables issued by the IRS could cause millions of taxpayers to get hundreds of dollars more than they are entitled to under the credit, money that will have to be repaid at tax time.

 
http://finance.yahoo.com/news/INSIDE-WASHINGTON-Taxpayers-apf-15094808.html/print

 

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