Skip to comments.13M get unexpected tax bill from Obama tax credit
Posted on 12/16/2010 1:56:02 PM PST by epithermal
WASHINGTON About 13.4 million taxpayers may be getting unexpected tax bills because they were awarded too much money under President Barack Obama's Making Work Pay tax credit, a government audit said Thursday.
The tax credit, which expires Jan. 1, was designed to increase take-home pay by about $8 a week through new tax withholding tables. The credit was capped at $400 for individuals and $800 for married couples filing jointly.
However, the credit put millions of taxpayers at risk for not having enough taxes withheld from their paychecks, resulting in a tax bill when they file their returns, said the audit by J. Russell George, the Treasury inspector general for tax administration.
(Excerpt) Read more at news.yahoo.com ...
I’m secretly glad of this....
people don’t like it when they get a tax bill...and this one points straight at the obamanation!
Simple fix....don’t file a return./sarc
Was this a tax credit, or just a reduction in withholdings?
Well, it was known at the time that this would happen. But of course all the news media portrayed it as a wonderful present from Barack Hussein Obama to his adoring subjects. And a huge economic stimulus!
Only those who read around the web knew differently.
Simple fix....dont file a return./sarc
The illegals and the moochers who vote for Bammy don’t file anyway.
The media will blame the Republicans. Obviously, this is Bush’s fault!
IIRC, they just adjusted the tables to withhold less money, but they didn’t actually change the rates.
You’re still on the hook for that money and those taxpayers who carefully balance their deductions and tax with the goal of breaking even, they may find that they owe GOVzilla some cash.
How’s all that Hope & Change workin’ out, America?..................
I SAID SO LAST YEAR!!!!!!!!!
THEY DID NOT CHANGE THE AMOUNT OF TAX YOU OWE, JUST THE AMOUNT THEY DEDUCTED OUT OF YOUR CHECK!!
KISS THAT REFUND GOODBYE
They thought they were getting some free money from Obongo’s stash. But now Obongo says give it to me back! So now they are being dunned for taxes same as any other deadbeat. Gotta love it and it’s sure to make many go sour on the Kenyan and not bother voting.
I think this was the adjustment in with holding that would have to be paid back if taxes are due. Just a temporary holding of their own money.
We said then it would have to be paid back by some and that it would be a surprise.
Or one Hollywood movie or one...
Doesn't affect a family's bottom line the way a $400 bill due in a month does.
Well said Wesley.
The Leftist’s, the Liberal’s, the Democrat’s, whatever you want to call them have a thread that runs through everything they do, and that thread is they eff up everything they touch. I won’t go there with them and their messing up specific types of dreams, ‘cause I get enough heat about my terminologies as it is.
Wondering what it’s going to take to expose the obvious to American voters.
Never believe what a Dem, Socialist, Leftist, Marxist, Liberal says as they don’t know how to NOT lie.
Never elect a Dem, Socialist, Leftist, Marxist, Liberal to a position in our government as they think it means they are elevated to GODlike status, and cannot be convinced otherwise.
The list of reasons to never empower, or acknowledge a Lefty is endless. Dems, RINO’s are Left. They all have to be removed from our government. Even the hairdresser’s, and Janitors.
It was a reduction in witholding without a reduction
in rate. The paychecks were larger by virtue of not
paying what is due. It is still due. That will suck up
a bit of the income tax refund spending spree.
Let's unilaterally lower people's paycheck withholding, then when they have under withheld at the end of the year, LET'S FINE THEM!
Anything that gets more money into the hands of Washington is a good thing.
Like I always say, if there is one law I could pass, it would be to ban withholding. Everyone would have to write an enormous check every April.
There would be no democrats left in office within a few years.
I would also move tax day to 1 November from 15 April.
About 13.4 million taxpayers may be getting unexpected tax bills because
they were awarded too much money under President Barack
Obama’s Making Work Pay tax credit,...
“We control the horizontal
We control the vertical
Do not attempt to adjust your set”
(the opening from the old sci-fi series “The Outer Limits”)
It looks like we are being governed by a bunch of space aliens.
I do suspect that Nancy Pelosi is a robot.
And that’s the kindest thing I can say about her.
Eight lousy dollars a week. When people want to hold onto their own money, the liberals accuse them of being greedy, but when a liberal “gives” you something, you can bet your left eye that it will a miserly pittance. You can also guarantee that they will crow about how “generous” they are by letting you keep your own money.
I told my coworkers this when it was first announced - it was not a credit, but an adjustment to withholding. We will pay it somehow, whether as normally or around April 15th.
Just wait until that $400 bill comes due for these households that didn’t plan on it. They might not have noticed $8 a week, but they will in the end!
Yep! It wasn’t an $8 tax CUT. It was simply an $8 reduction in with holdings that has to be repaid!
That’s why when the tax withholding changed, I immediately changed my W4 to increase the ammount that was taken out, just so I wouldn’t get hit with a tax bill come tax time.
Then the IRS has met one of its goals.
Wow, seems like I remember almost all FReepers saying this would be what would happen to this so called “tax credit” which in reality was a “kick it down the road ‘till later” move.
Half of them are probably unemployed now anyway, good luck to Zero getting that money! What an idiot!
I forgot to claim it last year on my return. The nice folks at IRS sent me the $400 shortly after I mailed in the forms..
I think, after this omnibus thingy, there may be very few democrats in the next ten years.