Does anybody here know exactly how Obama's tax break worked this year?

Most people I talk to don't even remember!!... that their tax obligations were adjusted by their employer this year for the sake of Obama's so-called "tax cut". Given that fact, I haven't been able to find anybody who understands how it did work and what happens at the end of the year now.

It's impossible to find 'official information' online. But what I have been reading and from what I understand, the ENTIRE cut, approx. $52/month to everybody regardless of your wages, since April, was money that you were going to get back on your return at the end of the year anyway..... only it was withheld so you hung onto it instead of paying it in and getting it back!
Since I'm married filing jointly, that will be $800 less of a tax return I can expect this year. If you have to pay in every year, you can expect to pay back that extra $800 April 15th!!

Just wait until people find this out. And that's not even the best part!

Apparently, it is known that some people who are listed as married filing jointly with their individual employers, who were only supposed to receive $400 a piece ($800 per family) have accidentally gotten a double credit. In this instance, each individual person was paid $800 resulting in $1600 going to some families (unknowingly) when the plan was for them to only get $800. (It was spread out over so many months that most people will not notice the mistake.)
So if they owe at tax time, they not only will have to pay back the initial $800, but also pay back the extra $800 that they weren't supposed to get!! Or, if they normally receive a $1600 refund, they will be getting nothing back this year.

This was a forward of money we were going to get anyway. This was not a tax cut at all and looks like a debacle unfolding that will make people wish they would have left things alone.

Last time, I got a $600 check in the mail that I cashed. Didn't owe anything back. We should have known something funny was up the way they did it this time.

Tax cut. LOL!!!!!!!!!!!!!!! Just wait until this hits the fan.

If I'm wrong (which I hope), please share it with us and list a link. I would greatly appreciate it and I hope that everything I've read is wrong. Unfortunately, I got an e-mail from H&R block warning that some families will end up paying more back this year than they normally would over the so-called 'tax credit'.
The "95% of American families will get a tax cut" line was B.S. A phony tax cut. Another lie.

 

Here is the info I could find but I don;t understand it. Of course, that is intentional as there is no other reason for our tax code to be so complicated, large and cumbersome other than to confuse, confound, keep the IRS folks in a job and hide the corruption and fraud.

http://www.irs.gov/newsroom/article/0,,id=204447,00.html

It sounds like some people will not have to pay it back but some making over a certain amount of money will? Or maybe not. lol

 

Thanks Stu. I liked this part:

" Those who should pay particular attention to their withholding include:

Pensioners (see more information under Pensioners, below)

Married couples with two incomes

Individuals with multiple jobs

Dependents

Some Social Security recipients who work

Workers without valid Social Security numbers"


Why not just say everyone? Who's really excluded here? You're right, it is confusing, but I think this part says it all:

"If you are affected by this reduction, you should review your withholding to ensure that sufficient funds have been withheld to meet your tax obligation."
If I normally get nothing back and have to pay nothing in and this was a genuine tax cut, I shouldn't have to do anything. Unfortunately for many people, it doesn't look like that will be the case. They will be finding out the hard way.

 

I thought the exact same thing! 2 income families? People working 2 jobs? Dependents? People on pensions?

I think my dog is safe from worrying but everyone else better be ready for a surprise.

 

No. If you made 75k individually or 150k as a couple, it gradually phased out as people's incomes increased. If you made 200k, you got nothing back.

This looks a little promising:

"The amount of the credit will be computed on the employee's 2009 income tax return filed in 2010. Taxpayers who do not have taxes withheld by an employer during the year can also claim the credit on their 2009 tax return."


I don't know if that will be good or bad but it looks like there will at least be a box for it on the 1040?? Will it reduce adjusted gross income? Maybe we should have a contest and then see who's right after this is all said and done? Guess right and win a prize. This is just ridiculous.

It's not a big deal to me but it could be to a lot of people who are already struggling.

 

Tax codes were created so that IRS/Inland Revenue and Accountants could prosper and too hell with the rest of us. Good luck with getting it sorted