WASHINGTON (AP) — 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.
At-risk taxpayers include a broad swath of the public: married couples in which both spouses work; workers with more than one job; retirees who have federal income taxes withheld from their pension payments and Social Security recipients with jobs that provide taxable income.
For Full article: http://finance.yahoo.com/news/INSIDE-WASHINGTON-Rude-apf-15091434.html?.v=1
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May 1, 2009 at 11:52 am
Interested Bystander
Hey All,
If you go back JAMES, I believe that I suggested that this would happen when the “stimulus” bill was passed.
I am far from a “know it all”, but when it smells like dog doo, it’s probably dog doo.
May 1, 2009 at 12:01 pm
JAMES
Yes you did say that– we will all be “paying it back” next year!