Posted on 04/10/2009 5:38:54 PM PDT by SandRat
4/10/2009 - CLEVELAND (AFNS) -- Retirees and annuitants may see a change in the amount of money they receive May 1 thanks to a new tax credit.
Public Law 111-05, The American Recovery and Reinvestment Act of 2009, was signed into law by President Obama on Feb. 17. This act authorized a tax credit for most workers including recipients of retired and annuity pay, and will reduce federal withholding tax rates.
These new federal tax rates were in place April 1 for the retired and annuity pay due May 1. The new tables can be found at www.irs.gov/pub/irs-pdf/n1036.pdf. People wanting to adjust their federal tax withholding after this tax credit takes effect must submit a new Form W-4P. This form is available at www.irs.gov/pub/irs-pdf/fw4p.pdf.
Mail a completed Form W-4P to: U. S. Military Retired Pay, P.O. Box 7130, London, KY 40742-7130; fax it to (800) 469-6559; or make the adjustment through an active myPay account online at mypay.dfas.mil/mypay.aspx.
Oh, I’m soooo happy. Now I can buy that Benz that I had my eye on for the last 30 years!!/sarc
Hmmm...I get a reduced withholding on my paycheck, reduced withholding on my wife’s paycheck, and now my retired pay is going to see reduced withholding.
Does that mean my tax liability at the end of the year is reduced accordingly?
Or am I going to experience and April Surprise?
What’s that URL to increase withholding, again? I need to rebalance it so I’m not liable for an underpayment penalty come 4/15/09.
Yay! They will withhold less, it will look like I’m better off, then in April, 2010, I’ll give it back to ‘em in a big fat check. How exciting! Forgive me if I’ve been a bit cynical.
That I don’t have at hand.
If I understand this correctly, the “messiah” is reducing the amount of taxes being withheld but you will still be responsible to pay taxes on that income next April 15th because the tax rates remain the same. Do I have this right? You just can’t trust a Commie. Looks like I’m going to have to unadjust his adjustment too.
That’s the way I read it.
That is correct. The bamster is playing taxpayers for fools.
Yeah! I’m one of those “95%” of idiots who is getting a “tax cut” from the “messiah”. LOL!!! I think BO believes that ALL of us just fell off the cabbage truck. The typical American is a hell of a lot brighter than the brightest ACORN.
Benz????? What... playing it safe...got no adventure your blood?
I am going for a Ferrari. You have to remember that we can still get free cheese, go to the food bank and get those great senior citizen discounts at restaurants.
Oh, and when you travel, sleeping in the car isn’t all that bad, especially if you park at motels that provide free breakfast in the morning.
So there... if you’re going big, go all the way!!
;>)
The new tax tables withhold less, but your obligation hasn't changed. You didn't get a tax cut. You got a withholding cut. You'll still owe the same amount in April...perhaps a lot more than you expected.
Well, you’d have to look at the small print, which probably not even a tax lawyer would understand.
But I SUSPECT that they will lower withholding taxes, and then sock it to the taxpayer in April.
It’s a twofer. Obama will encourage everyone to spend more over the next year, thinking that they have more money. That will slightly “improve” the economy.
Then he’ll be able to sock them with interest and penalties because they didn’t have enough money withheld, which will give him more tax revenues for big government.
“The typical American is a hell of a lot brighter than the brightest ACORN.”
I’m not so sure about that these days. After hearing someone today complain about the 8 years of Republican failure, I had to break the news to them America voted in ‘change’ in the form of Congress in 2006, who began their majority-led work in 2007.
BUMP!
Nope! Don’t want it! My withholding will be changed to cancel this “present” out.
It’s not a tax cut, it’s a loan (you didn’t ask for) until April.
Just wait.
Government induced underwithholdings. Wonder why taxpayers hate the IRS? Why intellegent citizens hate the government in general? Of course all those stupid sons of b’s who make up the electoral majority don’t have a clue.
Also, how does it affect retirees, single or married....and not working.
Leni
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