The Iowa Department of Revenue is getting ready to make a change that’ll leave you with a little more money in your paycheck. Department spokesperson Renee Mulvey says the state is adjusting the witholding tables that determine how much state tax employers take out of your check. Mulvey says the witholding tables haven’t changed since 1998 — and changes in state and federal tax law left the department taking a bigger cut than it should. She says they’re only supposed to collect the amount of tax that’s owed and no more. She says the imbalance in what’s collected has been going on for a year or two, so now they’re making an adjustment. Mulvey says many people will likely see a smaller refund when they file their 2005 taxes. She says they hear from taxpayers sometimes that they like the large refund. Mulvey says they tell taxpayers that their refund might be smaller, but you’ve had the money instead of the state. The state doesn’t pay interest on the money it holds until you file for a refund. Mulvey says if you have a job — the change will impact you. She says they process one-point-four individual income tax returns and they believe it will impact almost all of them. Mulvey says you can check you check after April to see if your boss has changed the state witholding by comparing it to a check from before April. She says if nothing changes with your wages and deductions, you should look to see if the amount of Iowa tax witheld has reduced or not. If you’re still not sure, there’s other ways to check. She says you can go to their website and check out the tax tables, or you can call the Department of Revenue and ask. Mulvey says information on the new tax tables will go out to 80-thousand employers in February.
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