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More than 15 million taxpayers could unexpectedly owe taxes when they file their federal returns next spring because the government was too generous with their new Making Work Pay tax credit.
Taxpayers are at risk if they have more than one job, are married and both spouses work, or receive Social Security benefits while also earning taxable wages, according to a report Monday by the Treasury Department's inspector general for tax administration.
Millions Will Have to Repay Part of Tax Credit - Politics and Government * US * News * Story - CNBC.com
Damn it!!!!!!!!!There goes my freaking refund.
I am married,have two jobs and my wife works.
That's PBO taking care of the working class.
Seems more like anal rape to me.
This was known before the new tax tables were even implemented. Some of the income tax reference sites had released information about the two jobs/married 2-income/retired/etc... problems with the income tax tables, and encouraged tax preparers to adjust withholding for those affected.
The problem wasn't his tax credit, but rather the withholding adjustment. (For those that don't know, the making work pay tax credit is a 2009 tax year tax credit that will show up in next year's tax return. In order to get the money out sooner the tax withholding tables were adjusted, so that over the year the tax withheld would be reduced. It just wasn't done in a way that would handle two jobs, and other scenarios.)
On a side note I'm also pissed about the 2008 $7,500 interest free loan upgrading to the 2009 $8,00 tax credit and the government just screwing those that bought in 2008 by not eliminating the pay back requirement.
Well, truthfully it's not common for new tax laws to be made retroactive. That's really the exception rather than the rule. That's why the original $7500 only applied to purchases on April 9th of 2008 forward. You could say the same about that one, that it screwed those who bought April 8th of 2008 or earlier.
So that they didn't make it retroactive is really not a surprise. Especially for tax laws that are supposed to encourage future behavior - in this case people buying homes. If someone already bought a home you don't need to provide an incentive for them to have bought the home they already bought.
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