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Old 03-05-2009, 09:49 AM   #90
Monkeydad
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Join Date: Mar 2006
Location: PA
Age: 46
Posts: 17,460
Re: How Low Can It Go?

^

Well, he DID say our $13 a week in stimulus money in our paychecks should start showing up April 1.

Comcast.net: Obama: People should see tax cut help by April 1

April 1, huh? How appropriate.

I believe this really IS a joke.

We'll be getting $13 less a week WITHHELD from our checks.

This will decrease the amount WITHHELD, but since they are not adjusting the tax tables for next year (that I have heard), this $13 less a week WITHHELD will result in all of us OWING more or receiving a reduced refund.

My advice, adjust that W-4 so it doesn't withhold this extra money, because your tax liability will not be changing when you file your 2009 taxes in about a year. If you don't you may:

1. End up paying in.
2. Kissing your refund goodbye (which may not be a bad thing since they won't be holding your money for a year, but why risk owing?)
3. Get bumped up to a HIGHER tax bracket since they are withholding less tax and increasing your net income.

We're getting scammed.

Worse yet, since this is a "refundable tax credit", those who fall short of owing less than the $400 or $800/couple in taxes a year WILL GET THE DIFFERENCE REFUNDED with a check. Yes, those not paying taxes will receive free money. It's not a tax credit, it's a welfare spending package.

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