It has now been learned that the so-called middle class tax cut will be nothing but smoke and mirrors... Did we expect anything else?
Here's why... The $13.00 per week that the Big "O" promised as the foundation of a tax break for the middle class, will begin in a month. This will be accomplished by changing the withholding rate that employers use to calculate the Federal tax you owe. So far, so good. The problem comes when you look at the other tax table that you will use to calculate your taxes next year... That tax table does not change.
What does that mean? It means that the $13.00 per week that you have been allowed to keep through the year will be counted as income at tax time. The end result is that you will not get as large a refund as you were thinking next year or you will owe taxes.
To avoid paying more at tax time next year, you may want to have your employer take an additional $13.00 per week starting next month.
Thanks for the stimulus Big "O".
Here's why... The $13.00 per week that the Big "O" promised as the foundation of a tax break for the middle class, will begin in a month. This will be accomplished by changing the withholding rate that employers use to calculate the Federal tax you owe. So far, so good. The problem comes when you look at the other tax table that you will use to calculate your taxes next year... That tax table does not change.
What does that mean? It means that the $13.00 per week that you have been allowed to keep through the year will be counted as income at tax time. The end result is that you will not get as large a refund as you were thinking next year or you will owe taxes.
To avoid paying more at tax time next year, you may want to have your employer take an additional $13.00 per week starting next month.
Thanks for the stimulus Big "O".
