While doing some tax planning for a client earlier this week, we noticed that there may be a chance that the taxpayer would either owe taxes this coming year or their refund would be a bit smaller. This is partly due to the taxpayer’s own personal situation; however the “Making Work Pay” tax credit is the major factor in the change. The credit is part of the stimulus package recently signed into law and there maybe be quite a few taxpayers who will have a surprise next year at tax time. The credit provides taxpayers with $400 to $800 during the year, but certain taxpayers will have to pay some of that money back when they file their taxes. Those taxpayers that will be affected are the married taxpayers where both spouses work, workers with more than one job during the year, and retired taxpayers with earned income (this is a lot of people). This is another reason that taxpayers should be planning for tax season next year now.
Keeping Next Year’s Taxes N Synergy Now