Where is the tax stimulus package?
Here’s how this year’s stimulus works. Part of the stimulus package that Obama signed on February 17th 2009 was the “Making work pay” tax credit. This gives everyone who works a $400 tax credit, $800 for married couples who file a joint tax return. You will apply this as a refundable tax credit on your 2009 tax return under the payments section. In other words, it counts as $400 or $800 worth of payments that you didn’t actually make. In an effort to get this money into the economy quickly, Obama asked the IRS to issue new withholding tables. These are the charts that employers use to determine how much to take out of your paychecks based on your status, number of allowances you claim, and your income. The new tables should result in having a little bit less taxes taken out of your checks (like $10 per week or so). By taking less out of your paychecks, it means you’ll pay less taxes. But then when you put the refundable tax credit on your tax return, counting it as a payment, your tax
