Stimulus Package 'Making Work Pay' Credit May Lead to Bigger Tax Bills This Year
Washington University in St. LouisThe small increase in take-home pay that began in April 2009 through the Making Work Pay Credit could mean an unexpected bump in your tax bill says Cheryl Block, tax law expert and professor of law at Washington University. The problem, according to Block, is that the Treasury Department’s new withholding tables do not take several individual employment circumstances into account. Some joint filers, college students and retirees, among others, may end up repaying all or part of the credit this tax season.