grandmabee Posted April 2, 2009 Report Share Posted April 2, 2009 my retired people getting pension are seeing there withholding decreaseing because of new tables. I thought this was only for earned income. the retireee are getting the 250 from ss. now it looks like they will be underwithheld because of this mess. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted April 2, 2009 Report Share Posted April 2, 2009 But this is the same government that we are going to put in charge of our health care. And just about everything else. Quote Link to comment Share on other sites More sharing options...
JRS Posted April 2, 2009 Report Share Posted April 2, 2009 It's about time...It's about change. !!!!!!!!!!!!!!???????????????? Quote Link to comment Share on other sites More sharing options...
Cat in OH Posted April 8, 2009 Report Share Posted April 8, 2009 Since I've gotten away from doing taxes but am still doing payroll bookkeeping for a few clients, I've been wondering: If this is a refundable credit, how will the employee know whether there was enough extra withheld to equal the amount allowed? Will the extra withholding have to be shown separately on the W-2? Quote Link to comment Share on other sites More sharing options...
Gail in Virginia Posted April 8, 2009 Report Share Posted April 8, 2009 Since I've gotten away from doing taxes but am still doing payroll bookkeeping for a few clients, I've been wondering: If this is a refundable credit, how will the employee know whether there was enough extra withheld to equal the amount allowed? Will the extra withholding have to be shown separately on the W-2? The new tables don't withhold extra - they withhold less. The idea is for them to get this money and the use of it during the year, without it causing additional tax at the end of the year. That remains to be seen - I had not even thought about pension withholding until someone brought that up at the beginning of the thread, but I am worried about how this will work with married, higher income couples, and taxpayers who expect the big refund as their only means of saving up for major purchases. Quote Link to comment Share on other sites More sharing options...
Cat in OH Posted April 8, 2009 Report Share Posted April 8, 2009 The new tables don't withhold extra - they withhold less. I knew that...and meant that. Just didn't realize I wrote it wrong. I'm still wondering how people will know if they've already received the full amount of the credit that they are entitled to. Most of the people I deal with have no clue as to how their withholding is calculated! Quote Link to comment Share on other sites More sharing options...
Slippery Pencil Posted April 8, 2009 Report Share Posted April 8, 2009 my retired people getting pension are seeing there withholding decreaseing because of new tables. I thought this was only for earned income. the retireee are getting the 250 from ss. now it looks like they will be underwithheld because of this mess. The withholding tables are the same for wages & retirement pay. So yes, their withholding will go down, and yes, if they withhold and pay estimates to break even or owe the max allowed, they will now be underwithheld. Quote Link to comment Share on other sites More sharing options...
MN2V Posted April 9, 2009 Report Share Posted April 9, 2009 To avoid this situation with the retirees I have them claim 9 exemptions on the W-4P and then fill in an amount on the additional amount to be withheld line. As I understand the $400 workers credit...6.2% of earned income will be calculated and shown as a credit. But instead of getting the credit when the taxes are filed, they are getting it now. Ask them what the difference in the payroll check amounts are and multiply that by number of pay periods to determine if they go over the $400.... phaseout starts at $75000 or $150,000 MFJ Quote Link to comment Share on other sites More sharing options...
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