How will the new tax tables impact her monthly checks?
According to the new tables and her withholding status of “married with zero allowances” Brenda’s withholdings will decrease by $600 for the remainder of 2009. The new tables will provide Brenda with a $600 adjustment even though she will only qualify for the $250 Economic Recovery Credit. What should she do? Brenda should talk with her tax professional and consider adjusting her tax withholdings so she does not end up owing taxes at the end of 2009. Example 2 Mike is a PSRS retiree collecting a $25,000 a year retirement benefit in addition to a $5,000 a year Social Security benefit. Mike is not married and has elected a federal tax withholding based on “single with one allowance.” So what tax credits will apply? Mike qualifies for the $250 Economic Recovery Payment. He will receive his check from Social Security. They are planning to mail the payments in May 2009. How will the new tax tables impact his monthly checks? According to the new tables and his withholding status of “single w
