A little helpful hint

Hey - We don't try to get too political on here, but I wanted to make sure that everyone was aware of this little issue, so you don't get burned about this time next year. I got this memo this week as an FYI...thought it was important enough to share...

Effective April 1, 2009, the federal tax withholding tables will be modified to reflect the provisions of the economic stimulus plan. The primary motivation of the plan is to increase take-home pay immediately and to provide tax credits through a reduction in taxes, via withholding tables.

One of the potential consequences of the new plan is there could be an underwithholding at the end of the year for two-income households or individuals who hold two jobs. The reason for the underwithholding is because each worker will be given the impact of a credit, whereas only one is available for each household. In a situation where an individual works two jobs, each employer will be withholding without considering the other; thus, a double credit will be provided.

I'm not an accountant, or your HR office...so you may want to check with them about adjusting your W4...that's the advice we were given (that I couldn't publish, sorry)...Given the fact that most families would probably be impacted by this...I just thought you should know, so you aren't paying a few more taxes next year than you probably already should...it's a little stimulus loophole. I don't think there will be a "sorry we weren't clear" exemption.