Millions will have to repay part of tax credit

[Sir Evil]

WASHINGTON – More than 15 million taxpayers could unexpectedly owe taxes when they file their federal returns next spring because the government was too generous with their new Making Work Pay tax credit.

Taxpayers are at risk if they have more than one job, are married and both spouses work, or receive Social Security benefits while also earning taxable wages, according to a report Monday by the Treasury Department's inspector general for tax administration.

The tax credit, which is supposed to pay individuals up to $400 and couples up to $800, was President Barack Obama's signature tax break in the massive stimulus package enacted in February.

Most workers started receiving the credit through small increases in their paychecks in April. The tax credit was made available through new withholding tables issued by the Internal Revenue Service.

The withholding tables, however do not take into account taxpayers with multiple jobs or married couples in which both people work. They also don't take into account Social Security recipients with jobs that provided taxable income.

The Social Security Administration sent out $250 payments to more than 50 million retirees in the spring as part of the economic stimulus package. The payments were meant to provide a boost for people who didn't' qualify for the tax credit.


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[Gaffer]

You know this was coming. Give it out, then find a way to take it back. With interest of course.

[cat slave]

A lot of people must have been asleep several months ago...we were warned
we would have to pay tax on it. For the life of me, I cant remember getting
a tax cut! But Ill sure be taxed, over and over and over.

Lets throw them all out in '10....everyone of them....that will strike fear in
the hearts of the ones still facing an election!

[sgtdmski]

Sorry but what happened to no tax increase for the 95% of us?????? I think that it is time we hold the man to his word, or force him to get in front of the American people and plainly state that he lied during his campaign.

If I owe 1 cent more than what I should have from last year, the gov't will not be receiving it. I won't pay it. And I will force a trial, and the first witness will be the President of the United States.

dmk

[cat slave]

I like the way you think! How long is this going to keep going on????
Theyve so over stepped the line and abused power...to the point of treason
if you ask me.

[Monkeybone]

Also, just talking about adding money, if you did a Cash for Clunker deal and the paperwork 'just didn't get throught somehow', then you will get slapped with that money owed too.