By Ethan Nobles on 9:10 AM
Filed Under: TheNaturalStateHawg
According to Little Rock's KTHV -- a CBS affiliate -- that Making Work Pay tax credit may or may not be beneficial.
If you want to read that particular story, just click, click, click away. For those of you in a hurry, however, here's the synopsis.
President Barack Obama has asked employers to adjust their payrolls so that all eligible workers can start receiving the credit. Individuals making $75,000 or less or couples making $150,000 or less are eligible for the credit and are to receive $400 (for individuals) or $800 (for couples).
So, less is withheld from your paycheck, resulting in some extra cash every pay period. Dandy, right?
Well, maybe not.
According to the KTHV story, the amount of taxes you owe has not changed. By the end of the year, workers are to receive a tax credit from the IRS so that extra money won't have to be paid back to the feds. However, KTHV reports there is some speculation that credit will never be issued, meaning a lot of people could be looking at lower refunds next year and might even owe taxes.
Want to defer the credit? Talk to your payroll folks and they can adjust your withholdings accordingly. That's what my wife and I are doing. If it is a true tax credit, we'll receive it when we file our 2009 tax returns.