TAXBILLY Posted February 23, 2009 Report Share Posted February 23, 2009 New withholding tables: http://www.irs.gov/newsroom/article/0,,id=204521,00.html taxbilly Quote Link to comment Share on other sites More sharing options...
Medlin Software, Dennis Posted February 23, 2009 Report Share Posted February 23, 2009 The "advance" release of the calcs/tables: http://www.irs.gov/pub/irs-pdf/n1036.pdf After a quick check on the changes, it appears the calculation change is "12 month" based: M-2, 5k per month old - 495 FWH new - 429 FWH diff - 66 66*12 = 792 (close to the 800 number) Implement 3/1/9, couple pays 666 less FWH Implement 4/1/9, couple pays 594 less FWH I point this out for those that counsel customers to the minimum legal withholding. It will take full year figuring and W-4 adjustments to receive the full benefit through paychecks. I suspect the IRS used 12 month calculations to avoid having to come up with a new set of bracket dollar levels for 2010 (other than index adjustments) instead of the most accurate method for 2009. This is "safer" as it does not appear to cause under withholding since there is a 2 to 3 month "buffer", depending on when the employer implements the new calculations. Dennis Quote Link to comment Share on other sites More sharing options...
Marie Posted February 23, 2009 Report Share Posted February 23, 2009 Do we have to use the new tables? It's only to get money in the taxpayer's pocket and if they don't care or still want the same taken out as before, is that allright? Quote Link to comment Share on other sites More sharing options...
TAXBILLY Posted February 23, 2009 Author Report Share Posted February 23, 2009 My understanding from what I have read in many places that you can choose to get the money on the 2009 return but I have no cite to back it up. taxbilly Quote Link to comment Share on other sites More sharing options...
Medlin Software, Dennis Posted February 23, 2009 Report Share Posted February 23, 2009 No option for employers. Refer to the link in my earlier message (Notice 1036). No different that deciding to use 2004 withholding calculations because your employees "like" a big refund check. Don't worry about what the employees want, that is for the employee and their tax person to figure out. As an employer, you have only one choice, withhold based on the current methods from IRS (your state, etc.). Added: Employees, should they do nothing (like submit a new W-4), will be getting the Jan, Feb, and part or all of March's value of the credit as part of their tax return. Quote Link to comment Share on other sites More sharing options...
GeneInAlabama Posted February 23, 2009 Report Share Posted February 23, 2009 Dennis, I assume that those of us using Medlin Payroll will be receiving updated tables pretty soon? Quote Link to comment Share on other sites More sharing options...
KHWEBERCPA Posted February 23, 2009 Report Share Posted February 23, 2009 And what about two working spouses? Would they get double the amount of benefit, and then owe money when they file their return next year? It looks that way to me. Ken Weber Vancouver, WA Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted February 23, 2009 Report Share Posted February 23, 2009 Well, working couples have always had to make adjustments. There is no way the tables can take that into account. Quote Link to comment Share on other sites More sharing options...
Bart Posted February 23, 2009 Report Share Posted February 23, 2009 Well, working couples have always had to make adjustments. There is no way the tables can take that into account. The W-4 does take into account working couples. If they have filed those correctly, they should not have a problem when the tables are revised. Quote Link to comment Share on other sites More sharing options...
Tax Prep by Deb Posted February 24, 2009 Report Share Posted February 24, 2009 The W-4 does take into account working couples. If they have filed those correctly, they should not have a problem when the tables are revised. Rarely have I had a couple fill the worksheet out and it come out correctly. I seem to remember a few years ago they overhauled the withholding tables and in doing so created a huge mess. I had clients who filled out the stupid worksheet and ended up owing taxes at then end of the year, who never owed in their life! I have a strange feeling that something like that will be happening again this year. I'm hoping I'm not asked for suggestions on how to fill them out. Deb! Quote Link to comment Share on other sites More sharing options...
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