This is an interesting article on recycling from... RISMEDIA, October 28, 2009—(MCT)—That little extra bit of money in the form of a larger paycheck tied to the Obama stimulus plan could end up taking a bite out of your federal income tax refund or even leave you owing taxes, say observers.
The stimulus plan lowered federal income tax withholding rates, which results in more take-home pay but less money going toward taxes. The downside is some taxpayers may end up with not enough taxes being withheld to cover what they owe in 2009.
As a result, some taxpayers may need to increase their withholding amount by reducing the number of allowances claimed for the rest of year, which means making changes to a W-4 form available from an employer’s human resources department. Single taxpayers who are working at more than one job and married couples filing jointly in a situation where both spouses work are the most likely groups of taxpayers to be caught short. “They are probably going to find out they are either getting a lot less back or they might owe,” said Mark Steber, chief tax officer at Jackson Hewitt Tax Service, a tax preparation firm.
Read more: http://rismedia.com/2009-10-27/stimulus-payout-may-come-back-to-haunt-you-at-tax-time/#ixzz0Xhe8TJWg
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