In a nutshell, the typical American 2 working household will get a tax rebate of $800. (Assuming your combined income is less than $150,000). $400 for singles with income less than $75,000
How do you exactly get the $800? Well that depends. You can collect the credit either by having the amount show up in your paychecks, or by claiming it as a lump sum on the 2009 tax return that you'll file in 2010.
Being on the employer side of this, I'm not exactly sure how you can get the money in each paycheck. What I'm reading is that the IRS is going to make changes to the tax withholding tables used to calculate federal withholding from your paycheck. If this happens, it would most likely be June before you'd see a change in your paycheck. Don't get to excited, you're looking at about $13 a week through the end of the year.
The really sick thing about all of this is that the federal government is borrowing money to do this and it will take 30 years to pay off this debt. I don't like this one bit.
Monday, March 02, 2009
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4 comments:
Todd,
Got a note from ADP last week that said their tax tables should be up to date and ready to go by March 1. They claim that the new withholding will begin on the first payroll after March 1. So, if they can update their tables, you should be able to as well.
Dirty little secret is that the $13/wk in extra pay will be taxable income for 2009. ADP suggested that couples with more than one job consider increasing withholding to cover the extra $1,600 in income.
Dave
You shoulda voted for McCain!
Why should a new president be blamed for what has been going on for years under the nose of another president? Like the AIG bonus, President Bush is already living in his million dollar home most likely working with a "ghost writer" about his life as President and earning untold millions more. Obama rolled up his shirt sleeves the first day of office and looked at the mess laid before him and stated lets get to work.Give the man a chance, he has a war or two to clean up and is facing the worst money crisis in years. All of this left for him to take care of and soon. I dare to say that there is no out there better to fix this problem than President Obama. I think what is bothering the American public is that a black President may well save us from white peoples greed .
ha. I love how all you conservatives are upset about the borrowing of stimulus money and the "30 years" it will take to pay off when for the last 6 years we have been pumping borrowed money into Iraq to fix our military blunder there. Where the hell have all you people been? You should be ashamed. Oh yeah, I am a republican by the way. Get a new job brother.
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