By: Sara Sindelar
Reports recently came out stating that tax payers have been receiving too much of the Making Work Pay credit. There are two solutions on the table; one is to give back a smaller refund or two is to get money back today. There are an estimated 15 million tax payers that fall under this overpaid credit category. The IRS states that they believe that this number will come down once the research has been made into the individuals. As well as the number affected going down the IRS feels that the problem will be fixed through cutting the taxpayers refund.
This credit was placed back in February as part of the stimulus package. It is for those making less than $75,000 with a credit of 6.2% or up to $400 earnings. Many people received more than $400 in credit and will be having the extra amount cut out of their tax refund. Solutions are being acted upon to take care of this tax credit glitch. There are many moving pieces to filing taxes and with the added on credits from the stimulus it allows for more mistakes on both ends. It is important to really pay close attention to your tax filings.
http://money.cnn.com/2009/11/17/pf/taxes/making_work_pay/index.htm
http://www.baltimoresun.com/business/bal-bz.digest171nov17,0,1253242.story
http://www.todaysthv.com/news/local/story.aspx?storyid=95084&catid=2
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