Anyone know what's going on with Income Tax Witholding Changes?

[umarider]

I was looking at the predicted amt for dh's next payday. It should show a small COL increase and therefore be a bit bigger than previous amts. But is it actually a good deal less!!

I did some digging and can account for about $16 of the decrease due to changes in insurance premiums, but couldn't figure out where about $200 would have gone. Further investigation yielded this:

http://fedupusa.org/2010/01/10/congr...-tax-increase/

The site has a definite slant to it, but I find the basic info interesting. Unfortunately, I've been unable to turn up much other, more credible info. Anyone know what is going on w/ the witholding tables for 2010?

[Mama~Love]

I hate the government.

I haven't looked at DH's paystub yet, I'll be looking very closely now.

Ugh.

[dawningmama]

Many employers adjusted (lowered) withholding last year when the Making Work Pay act was passed because it included a new tax credit on the 2009 federal returns. So most withholding has reverted back for the first pay period of 2010. It's not a tax increase, it's the ending of a one year credit.

IRS.gov has the 2010 withholding tables up. I can't direct link because it's a pdf download. But it's on the homepage, in the center box that scrolls through some topics.

You can also play with the withholding calculator on the IRS site to see if the amount being withheld is right for you. If it's not, you can make an adjustment with a new W-4 to your employer.

[umarider]

I found the 2010 tax tables and doing the calculations the withholding amt came out $200 more than what dh's paystub says was withheld during 2009. So that technically accounts for the difference, but the thing is I did the calculations again using the 2009 After Stimulus Withholding Tables and that amount was more than what dh actually had withheld!? I am so confused and feeling a little "wrapped around the axle" as dh would put it. I think I'll just try to stay calm until the pay actually is deposited and then I'll see what the amt is. Argh! We have plans for that $, kwim?

[kittywitty]

I know what you mean. We don't make that much (under the EITC amount) and end up making *less* money if dh gets a bonus or raise.