Economic Stimulus Might Cause Tax Problems

admin — Wed, 25 Nov 2009 20:38:02 +0000

In its haste to pass an economic stimulus package, Congress might have caused a problem for more than 15 million taxpayers. Included in the stimulus package was a $400 tax credit for individuals and an $800 tax credit for married couples. To implement the tax credit, the legislation instructed the IRS to adjust withholdings so that fewer taxes were withheld from employees’ paychecks.

To make a complicated story short, the instructions to the IRS were faulty, meaning millions of taxpayers might have received a larger credit than they were entitled.

In other words, 15.4 million taxpayers might owe money on their 2009 returns, according to a report by the inspector general for tax administration. Still others will receive smaller refunds than they imagined.

If you suspect you might fall into either of these camps, you can either wait and see or change your withholdings for the rest of they year. Either way, I recommend you talk to your Human Resource Manager if you need more information.

Assuming you do find that you are one of the 15 million people, comment below and share your story.

Personal Growth Blog for Philip Tirone - Credit Scoring Expert and Champion for the Underdog » Taxes

Economic Stimulus Might Cause Tax Problems