OTHER NEWS Check calculator to ensure enough tax is withheld
In 2009 and 2010, the Making Work Pay provision of the American Recovery and Reinvestment Act provided a refundable tax credit of up to $400 for working individuals and up to $800 for married taxpayers filing joint returns. For people who receive a paycheck and are subject to withholding, the credit should have been implemented in April. These changes may result in an increase in take-home pay. The amount of the credit will be computed on the employee's 2009 income tax return filed in 2010.
It is not necessary to submit a Form W-4 to get the automatic withholding change. However, an employee with multiple jobs or a married couple whose combined income places it in a higher tax bracket should consult the IRS "withholding calculator" and, if necessary, submit a revised Form W-4 to ensure enough tax is withheld.
The Withholding Calculator reflects the new withholding tables providing employees with the benefit of the Making Work Pay Credit. It can be found at www.irs.gov/individuals.
