While Wednesday is the deadline for filing your 2008 federal income taxes, you may’ve already noticed a change that will impact your 2009 taxes. I.R.S. spokesman, Christopher Miller, says the "Making Work Pay " tax credit is now showing up in your paycheck.
Miller says employers were asked to change tax withholding tables beginning April first, so you will see more money in your check. He says the credit can be 10 to $13 per paycheck, and will ultimately end up being $400 per individual, or $800 for those married filing jointly.
Miller says some people might want to tweak things to keep from having too much money taken out. He says people who have more than one job, or a family where both spouses work, may want to adjust the withholding so there isn’t too much taken out and then you would owe tax at the end of the year. Miller says there are a couple of indicators for those who might want to make an adjustment.
Miller says you’ll probably only be impacted negatively if you usually end up at a zero balance for taxes, or if you usually pay taxes. If you usually get a refund, then that refund will just be slightly reduced. Miller says there are a couple of ways to check if you have the proper withholding.
Miller says you can ask your tax professional if you need to adjust your withholding, or you can go to the I.R.S website , and use the withholding calculator to see if you need to make an adjustment. Miller says the change will impact your tax returns next year, and will have no impact on 2008.