New Tax Credit and 2009 Tax Planning

The new tax credit is being implemented this month through reduced payroll deductions.  It’s equates to about $10 to $15 per person per paycheck.  This tax credit will be worth $400 for individuals and $800 for joint filers.  Most people should have seen a difference in their paychecks by now.

However, next year if you make more than $75,000 as an individual filer or $150,000 as joint filers you will start to be phased out of this credit.  So it’s a good idea to make sure your payroll deduction is appropriate or you may wind up owing an extra $400 or $800 to Uncle Sam this time next year.

CNN Money has a good article that covers some situations where you may need to make adjustments to your payroll deductions.


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