by KYW's Lynne Adkins
The Obama stimulus package means we're seeing a bit more take-home pay in our weekly paychecks. But that could be a problem next April 15th.
We're getting more because less is being deducted for federal taxes. David Caplan, a CPA from Lafayette Hill (Montgomery County), Pa., says for most people a mandated credit means you won't have to pay the money back at the end of the year.
But not everyone will benefit, he warns -- for example, a working husband and wife:
"Each one is going to have lower withholding, but when you put the two (incomes) together they may make too much money and they may not get the credit. So they'll have lower withholding during the year but won't have a credit to offset that lower withholding, and they'll technically end up owing it back."
His advice: ask your payroll department about your situation and consider making deduction changes now, so you don't get hit at tax time:
"Unfortunatley, you can't opt out of the lower withholding. What you can do is change your exemptions or ask for more to be withheld to compensate for the lower withholding."
E-Mail Story
Print Story
