AnnieR Posted February 19, 2011 Report Share Posted February 19, 2011 GM retirees are covered under a legal services plan, reported on a W-2, in the amt of $74. Every year they have to pay $6 in taxes for SS & Medicare, not withheld. I just did my first one this year and the software is giving a $5 Making Work Pay credit. Is this legitimate? or just a software glitch. If I have to do these returns so these retirees can pay $1 to the govt, it will not be pretty! AnnieR Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted February 20, 2011 Report Share Posted February 20, 2011 GM retirees are covered under a legal services plan, reported on a W-2, in the amt of $74. Every year they have to pay $6 in taxes for SS & Medicare, not withheld. I just did my first one this year and the software is giving a $5 Making Work Pay credit. Is this legitimate? or just a software glitch. If I have to do these returns so these retirees can pay $1 to the govt, it will not be pretty! AnnieR Your calculations are correct. Our Congress at its tax-law making finest hour!!! Quote Link to comment Share on other sites More sharing options...
joanmcq Posted February 20, 2011 Report Share Posted February 20, 2011 If they have GM pensions, they probably have to file anyways. Quote Link to comment Share on other sites More sharing options...
AnnieR Posted February 22, 2011 Author Report Share Posted February 22, 2011 Yesterday I was talking to a friend (an EA) about the MWP credit for the $74 GM w-2s. She told me that she didn't feel it qualified because it wasn't earned income, so she had just been over-riding the credit. Today a client came into her office (during a rather bad snowstorm we're having...roads closed, etc.) and said he felt the letter he received on Sat. from the IRS was important. It was a notice informing him that the IRS was increasing his refund by $8.21 because the MWP credit hadn't been taken on his original return. Guess the IRS wants to make sure everybody gets every penny they deserve. AnnieR Quote Link to comment Share on other sites More sharing options...
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