Don’t Be Surprised When You File Your Taxes
The United Way of Muskingum, Perry and Morgan Counties wants local residents to check their tax withholdings to ensure they’re not surprised when they file their 2009 taxes.
In April, President Obama’s “Making Work Pay” tax credit went into effect, meaning an automated reduction of income tax withholding by employers.
Working individuals can get up to a 400 hundred dollar credit and married couples get 800 hundred dollars.
This might cause a problem for couples where both people work, in that they may not have enough taxes withheld.
“Those individuals could see if both they and their spouse work they could end up getting $1200 through the year but only be eligible for $800 and have to owe that other $400 back,” says Amy Davis, United Way.
The automated withholding reduction may also cause problems for working students whose parents claim them on their taxes, single people with multiple jobs, retirees and pensioners.
The United Way wants people who usually get small refunds to check with their employer to make sure they’re withholding enough taxes.
“If you receive a very small refund because of what you withhold you might actually end up owing the government if your one of those individuals, so what we’re encouraging people to do is take a look at their tax withholdings,” Davis says.
If you have questions contact your companies Human Resources department or the withholding calculator on the IRS’s Web site www.irs.gov