Vision Payroll

April 1, 2009

Tip of the Week: Use New Worksheet to Help Calculate Correct Withholding

The Internal Revenue Service (IRS) has released a revised version of Publication 919, How Do I Adjust My Tax Withholding?, to reflect changes from the Making Work Pay credit implemented as part of the American Recovery and Reinvestment Act of 2009 (ARRA). The IRS was concerned that two-earner families, employees with multiple jobs, and pension recipients may be under-withheld due to the changes in withholding tables mandated by ARRA. As a result, taxpayers could owe several hundred or thousands of dollars when filing their 2009 tax returns next year. The IRS recommends that taxpayers use new Worksheet 12, Making Work Pay Credit Worksheet (Including Special Credit for Government Retirees), from Publication 919 to adjust their withholding if necessary.

Contact Vision Payroll if you have questions on this topic.

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