Making Work Pay Credit

According to an 11/4/09 report by the Treasury Inspector General for Tax Administration, more than 15.4 million taxpayers could unexpectedly owe taxes for 2009 due to the Making Work Pay Credit.  The fact that the credit is advanced to taxpayers by a decrease in their federal income tax withholding “creates the vulnerability that some taxpayers may have their taxes under-withheld.”  Furthermore, more than 1.2 million taxpayers in this group may have to pay back some or all of the credit, and/or owe an estimated tax penalty or an increased estimated tax penalty.

PostHeaderIcon It’s Not What You Earn, But What You Keep, After Taxes.™

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