Was this a tax credit, or just a reduction in withholdings?
The latter.
IIRC, they just adjusted the tables to withhold less money, but they didn’t actually change the rates.
You’re still on the hook for that money and those taxpayers who carefully balance their deductions and tax with the goal of breaking even, they may find that they owe GOVzilla some cash.
I think this was the adjustment in with holding that would have to be paid back if taxes are due. Just a temporary holding of their own money.
We said then it would have to be paid back by some and that it would be a surprise.
Well, SURPRISE!
It was a reduction in witholding without a reduction
in rate. The paychecks were larger by virtue of not
paying what is due. It is still due. That will suck up
a bit of the income tax refund spending spree.