Some 15.4 million taxpayers could receive smaller refunds than they expected or owe taxes next year because they did not have enough money withheld from their paychecks as part of the Making Work Pay tax credit program, according to a report issued Monday.
The tax credit advocated by President Obama and enacted in February as part of the $787 billion economic stimulus plan lowered taxes for all but the nation's highest wage earners. It cut payments by as much as $400 for individuals and up to $800 for couples. Most workers started receiving the tax credit earlier this year as small reductions in the amount of taxes withheld from their paychecks.
But federal tax tables that guide those withholdings did not account for some wage earners whose personal situations complicated the tax credit calculation. That category included some workers with more than one job, some married couples in which both spouses work, and some Social Security recipients with jobs.
Comments: