Click here for Mobile Site: http://m.cbs4.com
  • Font Size    

CBS4.com Top Stories

Airport Worker Accused Of "Skimming"
E-mail

Close Window E-mail This Page

No April Fool's Joke, Paychecks To Increase

Required fields are marked with an asterisk(*)

The information you provide will be used only to send the requested e-mail and will not be used to send any other e-mail communications. Read more in our Privacy Policy

Send E-mail

   Print     Share +    Comments
Apr 1, 2009 4:22 pm US/Eastern

No April Fool's Joke, Paychecks To Increase

For More Consumer News, Log On CBS4.Com/4 Your Money

MIAMI (CBS4) ― This is not an April Fool's joke – starting Wednesday most Americans will notice a little extra in their paychecks.

As part of the Obama administrations $787 billion economic stimulus package, the two year "Making Work Pay" tax break goes into effect April 1st and will affect 95 percent of working American families.

This tax credit will be calculated at a rate of 6.2 percent of earned income. 

Financial planner Matt McGrath explained to CBS4 Your Money Team Reporter Al Sunshine the extra money is intentionally being distributed over the long run to avoid giving financially strapped consumers too much money all at once.

Instead of getting a single check like last year, the tax break will be doled out over the next two years as tax credits in paychecks. Most individuals will be eligible for $400, married couples up to $800. The tax credit will be phased out for higher-income taxpayers; individuals who make more than $75,000 and married couples who filing jointly and make between $150 thousand.

This year, most of those who qualify will receive an extra $13 a week more in their take-home pay.

In 2010, the credit will be about $7.70 a week spread over the entire year.

The administration has said that people who do not earn enough to owe income taxes will be eligible for the credit in an attempt to offset the payroll taxes they pay. 

Click Here to see the adjusted tax tables.

The increase for most workers will be seamless. Their employers and payroll companies will make all the necessary changes; there will be no new W-4 withholding form to fill out or anything else to get the credit.

The Internal Revenue Service suggests that individuals and couples with multiple jobs submit a revised withholding form to be on the safe side. People should keep an eye on pay stubs to make sure their money is included.

(© MMX, CBS Broadcasting Inc. All Rights Reserved.)

The top videos on CBS4.com

Add Comment

here. here. Need a log in? Register here
  •  * Will not be displayed with comment
  •  * e.g. (http://www.mywebsite.com)
  •  
  • Click here to refresh with new letters

Show Comments (0)

Close Window Login


Close Window Flag Comment


loading...
You need the latest Flash player to view video content.
Click here to download.

Click here to bypass this detection if you already have the latest Flash Player.

Local News

Top News Stories

© MMX, CBS Television Stations Inc. All Rights Reserved.