Be sure to check your witholdings
Published 9:58 am Saturday, August 29, 2009
To the Editor:
On April 1, the Making Work Pay tax credit was implemented. This resulted in fewer federal income taxes being withheld from paychecks. The credit pays workers up to a maximum of $400 for individuals and $800 for married taxpayers filing jointly. Workers receive the credit throughout 2009 and 2010 in slightly larger paychecks. Taxpayers who don’t have taxes withheld during the year can claim the credit on their tax return.
Some taxpayers may receive more dollars than they are entitled to under the credit — money that will have to be repaid at tax time. Taxpayers who should check their withholding include:
* Married couples with two incomes
* Individuals with multiple jobs
* Dependents who can be claimed on someone else’s return
* Some retirees with earned income
* Some pensioners
* Workers without valid Social Security numbers
Eligible recipients of Social Security, Supplemental Security Income, Railroad Retirement or Veteran’s benefits or certain government retirees should have received a $250 one-time payment in May 2009. However, retirees with earned income who also receive the tax credit will see the credit reduced by the payment amount when filing their tax return.
If you want more information on the tax credit, or you believe your current withholding is not appropriate for your tax situation, call the IRS at (800) 829-3676 or (800) 829-1040, or go to www.irs.gov/recovery. For more information on the one-time payment call your local Social Security office or go to www.socialsecurity.gov/payment.