3 months ago
By Carter Evans at the NYSE
Remember that Making Work Pay Tax Credit you got earlier this year?
That's the part of the stimulus that was supposed to pay individuals up to $400 and couples up to $800. But this one didn't come in one big lump sum; that $400-$800 was spread out in your paychecks over the course of the year.
When spread out over the 40 or so weeks left in the year after the credit was issued in April, the credit only amounts to an extra $10 to $20 a week, so you may not have even noticed the difference in your paycheck. But you'll probably notice if you have to pay it back come tax time!
Apparently the IRS didn't account for people who have more than one job, couples with both spouses working, or Social Security recipients with jobs when the credit was issued. The Treasury Department says that could amount to more than 15 million taxpayers, and they were overpaid!
If you fall into one of those categories, the IRS says you should adjust your withholding amounts in your paycheck so you don't get slapped with a surprise tax bill.
It's another incentive to check your paycheck closely, because it doesn't matter who gets the numbers wrong, you're the one who'll end up paying for the mistake in the end.
KXTV/News10 and CNN
