INSIDE WASHINGTON: Taxpayers to get rude surprise - Page 2

[polyhymnia]

Originally Posted by mar123

It is not the result of a tax cut. There was one proposed, but it was taken out. There are also many tax cuts/credits expiring, so even if they manage to give another small one, most people will simply break even. We have three kids; the child tax credit is going down by $400 per child- that is quite a bit more on our tax bill.

I don't know about the child tax credit or any of those things, but I was told by my HR department that the extra money on my paycheck was because of a change in the tax rates....?

[Sharlla]

I'm comparing what is being withheld this year to last year and it's the same. i have not changed my withholding at all.

I too prefer a large windfall of several thousand dollars over a couple hundred extra a month. that could hundred extra would sure to get blown on stupid crap.

[sunflower.mama]

Originally Posted by mar123

But if the withholding change was related to a tax cut, then accountants would not be warning all of their employees to be careful about oweing money next year.

But isn't the issue discussed in the article the potential for workers who have two jobs, who are getting two reductions in withholding, to owe at the end of the year because they are entitled to only one cut? Or families w/two earning spouses whose income thereby exceeds the threshhold for the cut, to owe because their single income qualifies them?

[p1gg1e]

Originally Posted by lolar2

As I recall there were a few posts here last month, from people who got burned on something similar last year. The government didn't want the money "back" but it caused problems calculating taxes. Apparently the IRS, Congress, and the President move on parallel tracks and don't communicate very well!

I'm sure though when they save all of us with their health care plan they will get their act together...for once in the history of bureaucracy

[polyhymnia]

Originally Posted by sunflower.mama

But isn't the issue discussed in the article the potential for workers who have two jobs, who are getting two reductions in withholding, to owe at the end of the year because they are entitled to only one cut? Or families w/two earning spouses whose income thereby exceeds the threshhold for the cut, to owe because their single income qualifies them?

This is exactly what I was told by my HR department, as I explained in an earlier post. I could be wrong though.