Tuesday, November 17, 2009

IRS: 15 Million Americans May Have to Return Tax Credits

According to the IRS, about 15 million Americans may have underpaid the government by around $400 because of confusion with Obama’s "Making Work Pay" tax credit. In a worst case scenario, all 15 million of those taxpayers will have to pay back that $400 on their next tax bill, in one lump sum payment.

One of the groups most affected by the bureaucratic slip-up: married couples.

If you and your spouse both work and earn more than $13,000, each has been credited $200 too much. That means you'll owe Uncle Sam $400 when you file jointly.

The amount owed goes down for couples making more than $150,000 a year because they weren't eligible for as much of the tax credit.

SMU Cox Business School professor Mike Davis explains the plan was intended to add about $33 a month to everyone's paycheck.

Continue reading at WFAA.com…

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