Any tax gurus here?

[pop goes the weasel]

Remember way back at the begining of the year when we were suppose to get that "little" extra in our paychecks? I knew that we would have to pay it back at the end of the year but what if you didn't get that "little extra"? I have checked each pay check and nothing extra has been added on. Everything adds up with what is being taken out and nothing unusal is listed on the stub. Thanks

[Inkstain82]

I don't believe they were adding extra, they were just taking out less.

[Contrary Housewife]

The "extra" wasn't really extra, it just reflects less withheld for federal taxes. If you would normally expect a refund, you would get a smaller refund, since it 'comes from' that money. You are essentially getting a loan from yourself.

Did the number for federal tax, (FT or FWT on your pay stub) change?

If your employer did not change your withholding then you have nothing to worry about. You will not 'owe' anything to this plan, just your normal taxes, and will file your refund as you normally do every year.

[pop goes the weasel]

The federal tax changes with each paycheck. The company my dh works for is, for lack of a better way to describe them, a real cluster. If you get my meaning. It's family owned and you can't ask questions or you get don't worry about it we know what we are doing. They screwed up the HIPP program when we were on it and took too much money that we never got back, last pay there was an extra 300 bucks on his check with no explanation. Glad I didn't spend it cause they figured out someone screwed up. There's no secretary in the office. She works out of her home 1 1/2 hours away from the office and works when she feels she has to. My daught gets 13.00 extra a pay for this extra so she knows that she got it. When my dh told the boss we thought it was that tax he just looked at him like he had no clue. Thanks for the info

[Greebo]

Unless DH's pay changes weekly, his taxes should be pretty consistent from week to week. I think you were wise to save the money just to be safe.

[Nishu]

Employers withhold a certain amount for taxes based on the amount of income a person makes and the information on their w2. When this credit was put into effect, the IRS released new withholding tables for the employers to follow, and that's how people were getting their money.

One of two things could have happened. The employer didn't update their withholdings according to the new standards, or they updated the withholdings earlier enough that you did not notice. It is possible that your husband's pay is already reflecting the credit because the new tables came out in February. However, judging from your expert analysis of the company's accounting practices and the fact that their secretary is handling these matters while working out of her home 1 1/2 hours away, I'd say that they've more than likely screwed up.


If they screwed up and are taking more than they should, you will get it back in your end of year taxes provided that you have accurate numbers on your tax paperwork. Keep all your information handy and be sure to compare the W2 forms with your pay stubs.

If they updated their information earlier than April and you just didn't notice, you may end up seeing a slightly reduced tax return or you may end up paying a little bit more at tax time, but the difference won't be that much. The tax credit is only like 400 to 800 and it's phased out a higher incomes.

If you've got some grit and a lot of time, you can figure out exactly what happened by looking at his pay stubs and comparing it with the updated withholding tables. You can find a link to them on the tax credit page.

http://www.irs.gov/newsroom/article/...204447,00.html

[Nishu]

The "extra" wasn't really extra, it just reflects less withheld for federal taxes. If you would normally expect a refund, you would get a smaller refund, since it 'comes from' that money. You are essentially getting a loan from yourself.

This is not true, it's a for real tax credit that will be reflected in your end of year taxes. You can think of it just as you would the payments they mailed out last year, only you're getting a little at a time rather than in one big check.

A. For people who receive a paycheck and are subject to withholding, the credit will typically be handled by their employers through automated withholding changes to be made in early spring 2009. These changes may result in an increase in the amount of take-home pay. The amount of the credit will be reported on the 2009 income tax return. Taxpayers who do not have taxes withheld by an employer during the year can also claim the credit on their 2009 tax return filed in 2010.