change in payroll tax table but no tax rates

[David760]

I heard on the radio that though the payroll tax tables will be adjusted to give approx $16 more per pay period to employees BUT the tax tables will not be adjusted. This could cause taxpayers to end up owing taxes next year.

Does anyone know more about this?

[Gretel]

The way I understand it is that the Making Work Pay Tax Credit will offset the difference in taxes. But I still see a nightmare coming our way for everyone who didn't just work for one employer all year long or isn't just self-employed.

[ChEAr$]

New withholding tables

are now available at irs.gov and available for downloading. IRS will soon be mailing out
circular... e is it?

I don't know where that 16$ figure came from, but if employers put into place new tables
as of April 1st as desired, the increase won't come up to the $13 first mentioned when the target date was July 1st.

[dtlee]

If they are reducing it by $400 (the number I recall being discussed) it will end up being closer to $10 per week.

However, I suspect that as in the past when they've "monkeyed" with withholding, some dual income families might be eligible individually for the reduction in withholding but won't be eligible for the credit due to the combined income, effectively reducing their refunds/increasing their balances due by $800 total.

[tpnl]

La La Land

Once again the people in Washington live in La La Land, while the rest of us live in the real world.

I alreday brought up the MFJ might be a problem at our office meeting.