- The CBO Weighs In...the Fight Continues
- Ten cars destroyed after controlled burn gets out of control
- Washington Admits Drug Use as a Player
- Smoking ban nets less than ten offenders
- Lindale mobile home engulfed by flames
- Dems sweeten health bill, set showdown Sunday vote
- Tyler Soldier Killed In Iraq
- Fess Parker, TV's 'Davy Crockett,' dies at 85
Tax Break warning!
November 18, 2009 - 6:32pm
WASHINGTON-Earlier this year, President Obama signed the "Making Work Pay" tax credit. The tax credit gave millions of Americans a few extra bucks in their paychecks. But now a mistake has been found in the stimulus package that could leave some owing the federal government next April.
It turns out the government was too generous with the new "Making Work Pay" tax credit. The tax break was designed to help Americans spend the economy out of recession. Most workers started receiving the credit through small increases in their paychecks back in April.
But the problem is the IRS's new tax withholding tables that made this break possible has one big problem. Americans will multiple jobs, married couples who are employed and social security recipients who earn taxable wages were getting money from the program when they weren't suppose to.
Come next April, these workers could actually owe the feds that money back when they file their taxes. Insiders told us this could range from $250-400.
East Texans we spoke to Wednesday said once again, hard working Americans are going to have to pay for other people's mistakes.
"Anytime the government wants to do something good, the next thing you find out is that you have to owe back or something happens or we didn't check into something," Julie McNeil of Tyler said.
"They don't think things through and its just not right for the Americans to have to bear the brunt of all their ignorance," Dr. Lonnie McKinzie of Tyler said.
The tax credit is also available for 2010. Officials said the problems will continue if workers don't adjust their withholdings for next year.
If you are concerned about whether you are withholding enough taxes, you can use a calculator on the IRS's website to find the appropriate amount that should be withheld at www.irs.gov.






Post new comment