It’s not an April Fool’s joke. Starting today (Friday), the Iowa Department of Revenue is changing its withholding formula as part of a plan to put more money in our checks. Paul Benson, manager of the agency’s Taxpayer Services division, says we won’t actually be earning more money, it’s just that less will be taken out for state taxes. The tax liability will remain the same but Benson says we’ll just get a little more money right away that before would have come back as a tax refund the next year. He says some people will now see smaller state tax refunds while others may have to start paying at tax time. He says the amount of money we’ll see appear in our next check won’t be very large. The change is about five-percent of the withholding, so, a single person making 15-hundred dollars every two weeks will get about an extra seven dollars per check. It’s not a lot but Benson says over time, it adds up. For more information, call the Iowa Department of Revenue at 800-367-3388 or surf to “www.state.ia.us/tax”.
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