Millions May Have to Repay Part of Obama Tax Credit (government, state)
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I am currently receiving unemployment benefits and I fear that I may be among those that will owe big time because I have had multiple jobs this year.
This little thing isn't going to be your problem. Sounds like you are chronically under-withheld if you work for wages or that your estimates aren't high enough. You should have had withholding taken out of your unemployment benefits. If you didn't you are probably going to have problems.
Aside from my first post, which is accurate, you don't know anything about my knowledge of income taxes. Correct?
So, come forth oh little one, and tell me how you come to this conclusion?
You can't.
Because you refuse to grasp that this is going to cause very, very few people to owe a very small amount of money, something that generally won't occur if they had filled out their W-4's accurately to begin with.
Either you don't understand that or you're nothing but a bash-Obama-for-anything partisan hack.
Because you refuse to grasp that this is going to cause very, very few people to owe a very small amount of money, something that generally won't occur if they had filled out their W-4's accurately to begin with.
Either you don't understand that or you're nothing but a bash-Obama-for-anything partisan hack.
That's the point. Making Work Pay was meant to PAY and stimulate the economy. The fact that ANYONE would have to owe money because this Administration can't get a measely tax break right is the absurd part. Why do you automatically assume that John and Jill didn't fill out a W-4 right just because a small tax break didn't work in their favor? All i'm hearing from you is that Obama can do no wrong. Nothing more, nothing less.
That's the point. Making Work Pay was meant to PAY and stimulate the economy. The fact that ANYONE would have to owe money because this Administration can't get a measely tax break right is the absurd part. Why do you automatically assume that John and Jill didn't fill out a W-4 right just because a small tax break didn't work in their favor? All i'm hearing from you is that Obama can do no wrong. Nothing more, nothing less.
Apparently withholding is lost on you. (this is a response to the pre-edited post)
1. The withholding tables provide more of a cushion than $800. That's why most people get refunds. If you fill out your W-4 as recommended, your refund will be more than that unless you aren't fully employed.
2. Find one post on this forum or anywhere in the world where I said, implied or suggested that Obama can do no wrong. One. Just one. If that's what you are hearing (or reading) you have comprehension issues or you read what you want into other people's posts.
Witholding tables changed. That's where the problem lies, and precisely what the IG of the IRS recently discovered. This does not mean that millions of working couples didn't fill out their W-4 correctly, as you ignorantly assert.
It simply means that a tax credit that was meant to stimulate the economy came with strings attached. If you are a married couple or a senior citizen, you've got to jump through hoops to make sure you contribute your part to stimulating the economy. Which takes me back to my original point: expecting millions of American's to line up at the HR department to make sure the IRS didn't put them in a precarious position is just plain stupid. If the goal was to stimulate the economy, we all know that failed miserably. Now people are finding out they may have a larger tax bill because of it? Par for the course for this Administration.
Witholding tables changed. That's where the problem lies, and precisely what the IG of the IRS recently discovered. This does not mean that millions of working couples didn't fill out their W-4 correctly, as you ignorantly assert.
I know that. That's not where the problem lies because if you fill out the W-4 correctly, you pay in more than you will owe in taxes unless you have significant non-wage income. That's why most people get refunds, generally of more than the amount under discussion. The withholding tables are set up that way. If you have significant non-wage income, you are suppose to pay estimates or adjust your W-4 so that you don't owe.
See, I understand the withholding and the tax return.
I know that. That's not where the problem lies because if you fill out the W-4 correctly, you pay in more than you will owe in taxes unless you have significant non-wage income. That's why most people get refunds, generally of more than the amount under discussion. The withholding tables are set up that way. If you have significant non-wage income, you are suppose to pay estimates or adjust your W-4 so that you don't owe.
See, I understand the withholding and the tax return.
You keep alluding to filling out a W-4 "correctly." There is NO correct way to fill out a W-4. There may be a COMMON way to fill out a W-4, but there is no CORRECT way. Every family has a unique situation that contributes to how they fill out a W-4. This non-sense about the "correct" way only serves to reinforce your argument, when the fact of the matter is that millions of American's don't fit your argument.
More misinformation. MWP is most definitely a tax credit, which is in fact a gift. If single, you get a free $400 taken off your 2009 tax bill. But in the interest of getting that money out into the economy quickly so that it can do some stimulating, the law isn't waiting around for you to deduct it from your tax bill on April 15, 2010, thereby pumping up your refund. Instead, less money is being taken out of your paycheck now. You are simply getting that same $400 credit in current biweekly installments rather than as a lump sum payment next Spring.
My gosh you are correct for once. I stand corrected.
Location: The Chatterdome in La La Land, CaliFUNia
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Quote:
Originally Posted by Sagran
This little thing isn't going to be your problem. Sounds like you are chronically under-withheld if you work for wages or that your estimates aren't high enough. You should have had withholding taken out of your unemployment benefits. If you didn't you are probably going to have problems.
I've instructed EDD to withhold from my unemployment checks. That isn't the issue ... The issue is that throughout this year, I've worked at multiple employers and I paid a hefty tax at tax time for 2008. I've tried the zero withholdings once and more than 2/3 were removed from my check (which was only 300 dollars). I cannot afford to have the government take out 2/3 of every paycheck when I earn less than 50,000 per year. If I knew how to fix this where the correct amount is withheld, I'd be happy but until then, I'll have to keep my 1 exemption and risk owing.
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