You May Not be Having Enough Federal Tax Withheld

 

• Are you a married couple with two incomes?
• A pensioner?
• An individual with multiple jobs?
• A dependent?
• Do you receive social security and still work?

You may not be having as much withholdings held back as you like. As part of the American Recovery and Reinvestment Act of 2009 the Making Work

Pay credit gave taxpayer’s more money in their pocket from their paychecks.

The IRS adjusted the federal tax tables so that less federal tax would be withheld. A $400 credit for individuals and $800 credit for married couples will be given on your 2009 taxes to balance the extra money in your payroll. However, for all the aforementioned taxpayers too much may be given back because of multiple jobs, or something like a pension not being taken into account. If you fall into these categories you may want to have extra held back from your pay to make up the difference. This can be done by lowering your withholding number or if you are already at single and zero by having an extra set amount taken out every paycheck, all by changing your W-4.

If you’d like to calculate whether you will be covered or not so you can make a change before it’s too late check out these excellent tax calculators.

http://www.irs.gov/individuals/article/0,,id=96196,00.html   

http://hrblock.com/cmpgn/making_work_pay.html