Sunday, March 14, 2010

The Making Work Pay Credit

Part of the government's 2009 American Recovery and Reinvestment Act, this credit was designed to put more money in taxpayers' pockets by taking less money out of their paychecks throughout the year. With less money being withheld, fewer people are getting large refunds. Remember, getting a tax refund means you've given the government too much and now you're getting your money back. Since the government took less, you have less to get back.

I believe there are going to be a lot of pissed off people when they realize this when they pay taxes this year. You do not want to owe the government and do not want the government owing you. If you are a saver than you would rather owe than be receiving tax return. This is why you set up a fund and withhold taxes(you want to be around $0.00). So when it is time to pay uncle sam you have that money sitting somewhere making a little interest rather, than letting the government borrow it from you and they make interest off it.

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