Barack Obama Called. He Wants Your Tax Credit Back.
Remember those $400.00 and $800.00 tax credits Barack Obama gave you in his stimulus plan? And remember that $250.00 gift he gave social security recipients?Well, Obama decided he wants them back. Yep. According to the IRS, Obama has never asked for an adjustment of the tax tables, so millions of Americans are going to get taxed for having received the tax credits back in February — typically through adjustments the federal government demanded businesses make in employees’ withholdings.
“While implementing a credit through reduced withholding is an effective way to provide economic stimulus evenly throughout the year, it is difficult to account for everyone’s circumstances,” said J. Russell George, the Treasury inspector general for tax administration. “More than 10 percent of all taxpayers who file individual tax returns for 2009 could owe additional taxes.”The tax credit is also available for 2010. Russell said the problems will continue in 2010 if they are not resolved.