Did you notice a little bump in your paycheck?

Anyone who is part of a double-income couple better watch his or her paycheck closely. This boost now may cost you next April 15

Here's why:
Employers started using a new withholding table by April 1. In one of many recent tax law changes, Congress decided to give wage earners an up-to-$400 per person cut in payroll taxes. The plan was to get this money into workers' hands quickly and out into the economy. Rather than wage earners waiting until next year to file their taxes and get the benefit of this tax cut, the plan was to take less out of paychecks starting now.

But, the new withholding tables in some cases cut too much. If that happens to you, you'll have to pay it back next year.

The tax and accounting business of Thomson Reuters looked at the new tables and found that for a husband and wife who both work and who each earn $75,000, the new tables might mean a cut of $1,228 cut in payroll taxes. But their maximum new tax credit is only $800. So next year, they'd have to pay the extra $428 back.

Thomson Reuters says others who might have too little tax withheld include people who work two jobs, people who receive taxable pension payments and teens or others who are claimed as dependents on parents’ or others’ tax returns.

What to do?

If you think you don't have the right amount of tax withheld, look at IRS Publication 919, How Do I Adjust My Tax Withholding, says CCH, a Wolters Kluwer business and a provider of tax, accounting and audit information.

This new tax break isn't available to everyone. It begins to phase out for those whose adjusted gross incomes are more than $75,000 for singles and $150,000 for married couples filing joint returns.


http://blogs.trb.com/business/columnists/brackey/blog/2009/04/watch_your_paycheck_closely.html

just another way for this lousy, lazy, sorry, government to continue to shaft us.......a 400.00 tax break means have an extra 9 dollars per week deducted from your pay.......this will cover the 400.00 come april 15th, next year.......SCREW THESE GUYS.....

Obama's real measure of help!

Ha ha ha...

Well, this tax thing did give me more money to spend right now. And I do, have and will...gladly. I needed it.
Who knows what it will mean at the end of the year. No refund? Oh well...I still got it. With what I make I don't think it iwll make me pay back at tax time. If it does...something is terribly wrong.

Kat