Federal Income Tax Withholding Change!

[Alicia Leonard]

Wouldn't it be so healthy if witholding was suspended for just one year? Wow, would it be interesting to see what happened when people had to write checks in April

I've worked as an independent contractor many times in my life and when people say that modest income people don't pay taxes, whew, are they ever wrong. Written out many a check to the IRS and you are right, people don't know, until they have to.

 

[scooterbug44]

I haven't done my taxes yet, but I thought the withholding change means an overall tax difference of $0. You had less withheld, so now you owe more, but the actual amount owed has not changed.

And that was about as clear as our tax code.

 

[sunspotbaby]

I had to look this up because i did our taxes the other night and this came up: "you qualify for the Making work pay tax credit."

Here is the information i found on it this morning.

The Making Work Pay Tax Credit

 

[Lady D]

I had to look this up because i did our taxes the other night and this came up: "you qualify for the Making work pay tax credit."

Here is the information i found on it this morning.

The Making Work Pay Tax Credit

I claim 0 on my W4 so more will come out of my check, but my hubby claims one which causes less to come out of his, he does this thinking it will balance things out tax wise for us, but not this time. His withholding was more this time and mine was way less. I took care today of making changes to my W4 by checking married but take out a a higher single rate and am having our payroll person take extra out of my check every pay period. Will see what that does.