http://finance.yahoo.com/news/INSIDE-WASHINGTON-Rude-apf-15091434.html?.v=1

Just an oversite? Or do they not know what they are doing?

If that article is actually true, the people at H&R Block are complete morons. I asked them about it, about what would happen at tax time next year. Their reply was that it won't matter and it won't affect my return next year.

was that before or after the over site was found

article is dated yesterday

ya could just keep whatever you get over your 400 in the bank, that way if they want it back, you will have it

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INSIDE WASHINGTON: Millions of couples, retirees may have to repay some of Obama tax credit

* Stephen Ohlemacher, Associated Press Writer
* On Thursday April 30, 2009, 6:55 pm EDT



WASHINGTON (AP) -- Millions of Americans enjoying their small windfall from President Barack Obama's "Making Work Pay" tax credit are in for an unpleasant surprise next spring.

The government is going to want some of that money back.

Yea, this single mom doesn't have $400 to spare. Easier to go to my employer and have them reduce the exemptions on my paycheck, I'd rather it come out a little throughout the year that have some huge chunk to pay next April.

i hear that

i misunderstood the concept apparently

i thought it was a lump sum stimulus i did not realize it was in the form of less paid through out the year

sorry bout that

No problem. Actually its a small increase in someone's pay throughout the year. I noticed my paycheck went up around $13 per week. But if I have to pay that back in April, I'd rather have extra tax taken out all year to counteract the amount I'd owe in April.

13x52=676

676-400=276

276/52=5.31

5.31x16=84.96

84.96+276=360.96

360.96/36=10.02

so start an account and put $11 a week in it and if ya got to pay it back you will have it

if not you will have an emergency fund


i know it is hard but you would be able to handle it that way

I know what you are saying and it makes complete sense, but if my employer can just take the extra tax out each week before I get my check, its easier for me.

there used to be a line for that on the withholding tax form

but i am not sure if it is still there or not

yes still allow extra withholding

what is the rude surprise?

less tax withheld does not reduce your tax burden.......

was this not understood by the masses ?????

Its not mis-understood, I figured all along it was like that. My original comment was that tax professionals like H&R Block should have known that and informed me better.

The tax credit is supposed to provide up to $400 to individuals and $800 to married couples as part of the massive economic recovery package enacted in February. Most workers started receiving the credit through small increases in their paychecks in the past month.

But new tax withholding tables issued by the IRS could cause millions of taxpayers to get hundreds of dollars more than they are entitled to under the credit, money that will have to be repaid at tax time.

.......................

The credit pays workers 6.2 percent of their earned income, up to a maximum of $400 for individuals and $800 for married couples who file jointly. Individuals making more $95,000 and couples making more than $190,000 are ineligible.

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the tax credit as planned was not needed to be paid back

it is the error in the tables that could cause the repayment to become an issue

Yep, that sounds right. I much preferred the stimulus check I got last year, but its not my choice.