Taxpayers to get rude surprise

[marketcrazy1]

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.

The Internal Revenue Service acknowledges problems with the withholding tables but has done little to warn average taxpayers. http://finance.yahoo.com/news/INSIDE-WASHINGTON-Rude-apf-15091434.html?.v=1 WHAT A MESS!!! we REALLY need a tax code overhaul....

[MineralMan]

1. When do we not get a rude surprise? I'm used to it.

[DURHAM D]

2. On April 15th of 2010. n/t

[Coyote_Bandit]

3. Since I am not getting stimulated

I will not worry about it.

I pay estimated taxes on an erratic and unpredictable income and the only certain way to avoid being penalized for underpayment of those taxes is to pay estimated taxes for the current year in an amount equal to the taxes owed the previous year. No stimulus here.




On edit - Trickle down stimulation through benefits bestoyed on others is a cop out that makes lots of assumptions - primary among them is that I will benefit financially because someone else benefits. That is horseshit voodoo Reagan style conomic theory. Either I benefit directly and receive some sort of financial stimulus or I don't - and I get to share in the same general benefits to the broad economy that everyone else (including those that receoived some form of direct stiumulus) does.

[CTyankee]

5. I'm pretty much in your boat, altho my income is a little more stable.

I am getting stim money because I am a SS recipient. It will add up to a little more than what I have to take out for estimated taxes.

My husband was laid off at the end of February so our income will not be near what it was last year. However, we are stuck the way you are, at least for the time being. We'll return to the situation with an accountant in July.

I freakin hate to overpay. I don't want my money back months from now. I want to keep what I can and have it gain interest (low that it may be) in my bank.

[gcomeau]

4. So, the "rude surprise" is...

I might get EXTRA money I wasn;t supposed to get... but not be allowed to keep it... because I wasn't supposed to get it?

Ummm... ok. Oh no? Whatever will I do?

What exactly is the problem supposed to be here?

[DURHAM D]

7. Most people think that their 2009 tax burden was lowered. n/t

[gcomeau]

8. It was. -nt

[alfredo]

6. I get a small pension & SSI, and I will receive $250 from the Stim check,

that mean I will have to pay more? I will just put it in savings.