SWMBO was commenting on how little they were withholding for Federal Taxes from this month's paycheck. It is a result of the implementation of the "Making Work Pay," designed to give singles a $400 reduction in taxes and couples $800. This was done by changing the tax withholding tables and then adding a $400/$800 tax credit when you file in April.
I am not sure how the math works out, etc., but for some people, especially couples where both spouses work the amount withheld is going to be cut too much. We are in this boat, looks like they are going to under-withhold by about $400 for us.
So, you might want to give that a check, adjust withholding, or expect a bill (or less of a refund) in April.
(Really don't want to get political, just an FYI...)
EDIT: http://www.irs.gov/individuals/page/0,,id=14806,00.html (This might help, but the more I look at it the more I doubt it.)
I am not sure how the math works out, etc., but for some people, especially couples where both spouses work the amount withheld is going to be cut too much. We are in this boat, looks like they are going to under-withhold by about $400 for us.
So, you might want to give that a check, adjust withholding, or expect a bill (or less of a refund) in April.
(Really don't want to get political, just an FYI...)
EDIT: http://www.irs.gov/individuals/page/0,,id=14806,00.html (This might help, but the more I look at it the more I doubt it.)
