Chulo
04-17-2009, 03:41 PM
New tax laws designed to boost the economy by giving you a bit more cash in your pocket might lead to problems for you next year if you're in a dual-income household. The new payroll tax tables mean you could end up withholding too little without even knowing it and, though you're welcome to take that long-awaited trip up the Zambezi, you probably won't enjoy writing a check to the IRS come April 2010. The Chicago Tribune gives the following example: "For a husband and wife who each earn $75,000, the new tables might mean a cut of $1,228 cut in payroll taxes (http://consumerist.com/tag/taxes/). But their maximum new tax credit is only $800. So next year, they'd have to pay the extra $428 back."
So, as soon as you're done with last year's taxes, double check the new amount of your withholding here. (http://www.irs.gov/publications/p919/index.html)
http://consumerist.com/5216191/new-withholding-rules-mean-you-might-owe-the-irs-next-year
More in your paycheck? New withholding rules could cost you
More in your paycheck? New withholding rules could cost you
April 17, 2009 Did you notice a little bump in your paycheck?
Those in a double-income household had better watch their paycheck closely. This boost may cost you next April 15.
Here's why: Employers started using a new withholding tax table, effective April 1. In one of many recent tax law changes, Congress decided to give wage earners a payroll-tax cut of up to $400 per person. The plan was to get this money into workers' hands quickly and out into the economy. Rather than wage earners waiting until next year to file their taxes and get the benefit of this tax cut, the goal was to take less out of paychecks starting now. But the new withholding tables in some cases cut too much. If that happens, you'll have to pay it back next year.
The tax and accounting business of Thomson ******* looked at the new tables and found that for a husband and wife who each earn $75,000, the new tables might mean a cut of $1,228 cut in payroll taxes. But their maximum new tax credit is only $800. So next year, they'd have to pay the extra $428 back.
What to do?
To double-check the right amount of tax withheld, look at IRS (http://www.chicagotribune.com/topic/economy-business-finance/internal-revenue-service-ORGOV000010.topic) Publication 919, said CCH, a provider of tax, accounting and audit information.
—Harriet Brackey, Tribune Newspapers
http://www.chicagotribune.com/business/chi-tc-biz-fri-paycheck-taxes-04apr17,0,547546.story
well the simulis money has to come from somewhere
So, as soon as you're done with last year's taxes, double check the new amount of your withholding here. (http://www.irs.gov/publications/p919/index.html)
http://consumerist.com/5216191/new-withholding-rules-mean-you-might-owe-the-irs-next-year
More in your paycheck? New withholding rules could cost you
More in your paycheck? New withholding rules could cost you
April 17, 2009 Did you notice a little bump in your paycheck?
Those in a double-income household had better watch their paycheck closely. This boost may cost you next April 15.
Here's why: Employers started using a new withholding tax table, effective April 1. In one of many recent tax law changes, Congress decided to give wage earners a payroll-tax cut of up to $400 per person. The plan was to get this money into workers' hands quickly and out into the economy. Rather than wage earners waiting until next year to file their taxes and get the benefit of this tax cut, the goal was to take less out of paychecks starting now. But the new withholding tables in some cases cut too much. If that happens, you'll have to pay it back next year.
The tax and accounting business of Thomson ******* looked at the new tables and found that for a husband and wife who each earn $75,000, the new tables might mean a cut of $1,228 cut in payroll taxes. But their maximum new tax credit is only $800. So next year, they'd have to pay the extra $428 back.
What to do?
To double-check the right amount of tax withheld, look at IRS (http://www.chicagotribune.com/topic/economy-business-finance/internal-revenue-service-ORGOV000010.topic) Publication 919, said CCH, a provider of tax, accounting and audit information.
—Harriet Brackey, Tribune Newspapers
http://www.chicagotribune.com/business/chi-tc-biz-fri-paycheck-taxes-04apr17,0,547546.story
well the simulis money has to come from somewhere