15 Million Americans May Face Unexpected Tax Bill Because of Stimulus Package

November 29, 2009 by admin

g Digg plugin, Author : Yong Mook Kim Website : http://www.mkyong.com/blog/digg-digg-wordpress-plugin/ -->

15 million Americans may face an unexpected tax bill when they file their 2009 income tax return next April because a provision in the Stimulus package that provided consumers with an overly generous tax credit that went into effect in April of 2009 that increased taxpayers weekly take-home pay.

Tax-payers that will likely face these bills are people that have more than one job, are married and both spouses earn an income, and social security payers that also earn taxable wages.

A recent report from the Associated Press stated that the average American’s tax return is about $3,000, so the net result for most Americans is that they will have a smaller than expected tax-return.

There’s also the larger issue that most Americans are over-withheld in the first place. When you pay too much in taxes and get a return from the Federal Government, you’re essentially giving the government an interest-free loan on the money that you overpay. Instead, you should try to make your withholding as realistic as possible so that you get as close of a return to $0.00 as possible.

For example, if you typically get a refund of $1,000 and get paid bi-weekly, you are being over-withheld by $40 each pay period. Talk to a human resources or payroll specialist at the company you work for to make the change happen.


Blog Traffic Exchange Related Websites

Comments are closed.