Comments on: Make Work Pay Stimulus Tax Credit

By: linda

linda — Mon, 05 Oct 2009 01:29:59 +0000

I work for a corporation which employs approx 45 people. They have not implemented the new withholding tax, claim we will get a check at the end of the year. Can they do this

By: Tom Catchings

Tom Catchings — Tue, 11 Aug 2009 14:34:41 +0000

From what I understand with regard to this initiative, it is totally misleading. Taking out less now but leaving your net annual tax the same is not a credit in even the loosest interpretation. It is nothing more than a forced loan, which must be paid back at the end of the year.

By: Alan S

Alan S — Tue, 11 Aug 2009 05:29:29 +0000

C’MON PEOPLE! WAKE UP! This is just Obama’s failed attempt of making you think he’s such a great guy, when in fact he’s just using this to divert attention from the tax hike that we all will see on 2009 taxes. Now if you’re making between $66,530 and $84,300 and are single or from $118,130 to $144,800 and are married, you’ll pay 28 % of your income instead of the 25% you paid last year. OBAMA GIVES YOU A DIME WITH HIS LEFT HAND AND TAKES FROM YOU $1 WITH HIS RIGHT HAND.

By: Alan S

Alan S — Tue, 11 Aug 2009 05:17:40 +0000

You’re exactly right Allen (you must be smart cause of your name). This is like a bad magic act for young kids who don’t know anything about money where they give you (1) $5 bill in exchange for (2) $1 bills and tell them that 2 is better than 1. The problem is that Obama, Biden, Pelosi, Reid, Geithner, and all the other crooks in Washington think that the American people are idiots and we’ll all be fooled by their games and attempts to control us and every dime in the US economy. We may have not all went to Harvard, but we’re not the morons they think we are!

By: Holly

Holly — Thu, 23 Jul 2009 18:01:36 +0000

Can someone please explain to me why they aren’t taking any federal income tax out of my check?? Is this part of make work pay stimulus?? I feel I am going to be so screwed at tax time. Help…….

By: Bridget

Bridget — Thu, 04 Jun 2009 18:38:48 +0000

This is a lot of thought on a failed attempt to stimulate anything but contempt for another failed program. I’m glad the auto companies are getting such a big share, so they can go bankrupt after paying off a few debts.

By: JEN

JEN — Tue, 19 May 2009 00:17:14 +0000

WILL PEOPLE WHO WORK AS HOUSEKEEPERS AT HOTELS AND MOTEL GET IT ALSO. BECAUSE I KNOW SOME PEOPLE WHO IS NOT GETTING IT.

By: Andy

Andy — Sun, 03 May 2009 17:33:53 +0000

Most people are getting these now, and perhaps (with the other credits) is the reason for the economic optimism that a lot of people are now feeling. It’s more the stimuls effect than the dollar value that makes the difference I guess.

By: Casey

Casey — Wed, 29 Apr 2009 17:20:17 +0000

What if your employer does not implement the paycheck increase. What would happen at the end of the year.

By: Maggie Williams

Maggie Williams — Sat, 25 Apr 2009 19:20:09 +0000

When will I see any changes on my paycheck.All of the employees have had a 10% cut in their pay. I get paid every week and I can tell the difference in the 10% cut. I have yet to see anything extra on my paycheck. As a matter of fact almost none of us do. There is only 1 or 2 people that say they have seen any extra money on their paychecks and that was in the tune of $7. The HR woman said that only certain people get it and I would like to know why is that when I am single and work as hard? I do not make that much money and I do not see why I do not get anything extra.

By: one

one — Mon, 13 Apr 2009 21:50:40 +0000

President Obama’s Stimulus Tax Change

You will see reduced Federal tax withholdings effective on your March 20th check due to the stimulus tax changes going into effect. This means you may need to adjust your W-4 based on your individual tax position. You will need to speak with your tax preparer to decide if and how you should adjust this. Please review exceptions and requirements for eligibility. We cannot advise you on this matter and will not do so, as per the law.

This is a result of the Stimulus Bill recently signed by President Obama that includes the “Making Work Pay Tax Credit.” This tax credit is automatically applied to your check, which is why you need to verify if you have to adjust your W-4 form tax settings. The IRS has revised the tax withholding tables so that taxpayers can see a tax benefit this year. Employers are required to implement the new withholding rates no later than April 1, 2009. Employees will not need to do anything to take advantage of the new withholding rates.

Who Qualifies & Who Doesn’t
1. Only U.S. citizens and resident aliens with a valid Social Security number are eligible for the Making Work Pay credit.

2. Anyone claimed as a dependent is not eligible for the credit. That means kids who are working, including college students, who are still claimed as dependents, are not eligible for the credit. Because the paycheck withholding is going to be adjusted by employers, working dependents may need to adjust the withholding annually to avoid owing tax at the end of the year.

3. Non-resident aliens, estates, and trusts do not qualify for the Making Work Pay tax credit.

4. However, individuals and couples with multiple jobs may need to adjust their withholding to have more taxes taken out if they expect not to qualify for the tax credit based on their total income.
a. This also applies to working dependents (who are not eligible for the credit) or working retirees (who may be eligible for a reduced credit).

5. The Making Work Pay credit starts to be reduced for individual filers making $75,000 in modified adjusted gross income, or $150,000 for joint filers. The credit is reduced by 2% of the amount of income in excess of $75,000 (or $150,000) threshold. The credit is completely phased out for individuals making $95,000 or more, or $190,000 for joint filers.

This information is being provided as a courtesy to employees so they can make the correct choices for their tax settings for this year and next year.

The IRS will help you calculate your 2009 W-4. You will need your 2008 return and your last paycheck stub. Go to http://www.irs.gov/individuals/page/0,,id=14806,00.html

By: JTPigskin

JTPigskin — Thu, 09 Apr 2009 12:20:40 +0000

Excellent question Karen. I think that’s the whole snake in the grass. All other things equal, if you are used to getting a $400 refund, i think you are now going to owe $400.

By: karen

karen — Fri, 03 Apr 2009 20:03:17 +0000

This is a concern that’s been raised on another website I frequent: our federal tax withholding has been reduced, so our paychecks are a bit bigger. That’s nice. But what what is meant by a ‘refundable’ credit? Refundable To Whom? If the tax rate table for 2009 doesn’t go down, won’t I just owe this money back to the IRS on 4/15/2010?

By: Jim

Jim — Fri, 27 Mar 2009 12:47:47 +0000

You should receive the Social Security benefit.

By: Carlin

Carlin — Fri, 27 Mar 2009 00:29:20 +0000

I am retired and receive Social Security will I be eligible to get the $250 in May