Wednesday, March 25, 2009

Tax Time

While this blog is for my personal views - there is those times I'd like to get up on my professional soap box.

For those of you who receive a paycheck from your place of employment, you may have noticed a slight change, a small increase. This change reflects the Making Work Pay credit that was passed by Pres Obama.

While this is nice, actually several of my clients called with their results - any where from 58cents to $3 in their weekly check. That is about $24 to $144 for this year. I'm not sure that letting the people keep a few more $$'s in their paycheck will make the economic boom that the Congress and President is expecting.

One warning - if you, as a taxpayer, plan the amount of withholding during the year to insure that with the level of withholding and your estimate payments is equal or exceed the safe harbor amount - Be Aware - since your withholding is decreasing you will not meet the safe harbor payment level and will be subject to a late payment penalty.

Make sure you and your tax preparer are aware of this "little" difference. It may be great now, yet it won't be pleasant in the future.

Geez - what a party pooper! The honeymoon isn't long enough. For more information visit my website Patricia J. Foley, Certified Public Accountant for up-to-date tax information.

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