About this Obama Stimulus and withhold tables.

[TaxLadyinPA]

Is it just the withhold table that is changed or is the tax table also changed ????

I ask because (telling my age here) I remember this happening before but I cannot remember what Presidency did it. The withhold tables changed and everyone got this extra money all year long, then tax time came and people who always got a small refund found they were owing $ 1000 plus because only the withhold table changed.

When I listen to the news media and Obama speeches I've never heard the direct answer to this question. Possibly because I'm too busy doing this years tax prep to actually concentrate on what is being said. So I ask you to tell me if I've missed the answer to the most important part of this Obama Stimulus.

[BOB W]

Is it just the withhold table that is changed or is the tax table also changed ????

I ask because (telling my age here) I remember this happening before but I cannot remember what Presidency did it. The withhold tables changed and everyone got this extra money all year long, then tax time came and people who always got a small refund found they were owing $ 1000 plus because only the withhold table changed.

When I listen to the news media and Obama speeches I've never heard the direct answer to this question. Possibly because I'm too busy doing this years tax prep to actually concentrate on what is being said. So I ask you to tell me if I've missed the answer to the most important part of this Obama Stimulus.

Check this thread out from last week:

http://www.thetaxbook.com/forums/showthread.php?t=11532

[TaxLadyinPA]

Thanks Bob

Well I was hoping I was just missing something .... but I see I was only missing that thread .....

so it is as I suspect ..... my clients are in trouble .. same as last time .... big whoopie for the piddle credit amount ....



Do you remember what Presidency did it before ????? That is bugging me LOL

[Jesse]

I don't remember which presidency, but I think it was when the 10% tax bracket was enacted. The difference you were suppose to receive was the 5%(15% -10%) drop and the same theory, you won't notice any difference from the previous year when you file. No one seemed to notice the "extra" pay they received and it was a nightmare!

[Lion]

Credit

The tax rates won't change to match the withholding tables. Supposedly, the withholding tables changed to account for the new credit. Please read the other threads to see the issues, multiple jobs, etc.

Was it Carter? The first Bush? Early Clinton? I remember the lowered withholding without a corresponding change in taxes, but I'm seriously sleep deprived now.

[BHoffman]

I believe it was GHW Bush.