Glitch Could Force 15 MILLION People To Repay Obama's Stimulus Tax Credit

[earth mom]

Glitch Could Force 15 MILLION People To Repay Obama's Stimulus Tax Credit

STEPHEN OHLEMACHER


WASHINGTON – More than 15 million taxpayers may owe the government $250 or more because of how the IRS last spring set up President Barack Obama's tax break that was designed to help consumers spend the U.S. economy out of recession.

Individuals with more than one job and married couples in which both spouses work may have to repay the government $400, either through a smaller tax refund or a larger tax bill, according to a report released Monday by the Treasury Department's inspector general for tax administration. Social Security recipients who also earn taxable wages may have to repay $250.

The tax credit, which is supposed to pay individuals up to $400 and couples up to $800, was Obama's signature tax break in the massive stimulus package enacted in February. The credit has increased weekly paychecks for 95 percent of working families, giving them cash to help boost consumer spending during the worst economic recession in decades.

<snip>

But for 15.4 million taxpayers, the new tax tables will mean an unexpected tax bill, according the IG report.


http://www.huffingtonpost.com/2009/11/16/obama-tax-credit-glitch-c_n_359233.html

[vadawg]

1. oh oh, sometimes people just seem to feck stuff up, even with good intentions..

[Art_from_Ark]

2. Pavement of the road to hell, and all that

[Ex Lurker]

3. it was just for this reason that I had my withholding adjusted

so that it was the same as before the credit. I'll take my stimulus with my refund next April.

[earth mom]

4. kick! nt

[Statistical]

5. Well craps looks like I am one of the 15 million...

"A married couple is eligible for an $800 credit. However, if both spouses work and make more than $13,000, the new withholding tables give them each a $600 boost – for a total of $1,200."

I mean most people make more than $13K and most married couples both spouses work. So I would guess most married couples will fall into this category.

Oh well it isn't like I lose money. They took too little out of my check so I owe more at end of year. The end result is you pay the same amount in taxes no matter what.

Not sure why people unreced it? WTF?

[earth mom]

6. The thread was u/r because nothing bad is allowed to be posted about Saint Obama.

I'm sure there's quite a bit of shoot the messenger in there as well. :eyes:

[Statistical]

7. I see.

Sad thing is it really isn't anti-Obama. People got same tax break they just go "too much" in their check which equals less refund or more payment on April 15th.

The Saint Obama unreccers are doing others a diservice. Information is power. Now I know I am going to be another $400 short this April 15th (I never get refund) so I can plan on having to pay that $400.

Thanks for the article. Sometimes DU is just as fundie as the Repubs. Information is information even if it is bad news it is always better to know. Shutting your eyes doesn't make it go away.

K & R

[earth mom]

8. Totally agree. Politicians work for the people and we should never ever forget that. nt

[vadawg]

9. problem is the politicians seem to forget that, from both sides

[earth mom]

10. Both parties really aren't all that different are they? nt

[LaPera]

14. Incredibly different....Filthy republicans ideology is corporate fascism, busting unions

no health care for the 50 million who can't afford it, tax cuts for the rich and corporations, deregulation of all corporations and Banks....privatization of everything for corporations who cut corners, cheat lie, charge higher prices, treat consumers like robots and get subsidies, tax incentives and hiding their profits off-shore...This is republican ideology.

Did I mention republicans love BUSTING UNIONS? The workers only voice to help help the unbelievably rich corporations and the billions they spend on lobbyist each year.

[earth mom]

15. Take off your rose colored glasses.

Bill Maher said it best:

"We have the center right party and a crazy party. And. over the last 30-odd years, Democrats have moved to the right, and the right has moved into a mental hospital.
So, what we have is one perfectly good party for hedge fund managers, credit card companies, banks, defense contractors, big agriculture and the pharmaceutical lobby; that's the Democrats.
And they sit across the aisle from a small group of religious lunatics, flat-earth-ers and Civil War re-enactors who mostly communicate by AM radio and call themselves the Republicans. And who actually worry that Obama is a socialist.

Socialist? He's not even a liberal. I know he's not because he's on TV. And while I see Democrats on television, I don't see actual liberals. And if occasionally you do get to hear Ralph Nader or Noam Chomsky or Dennis Kucinich, they're treated like buffoons. Okay, these are not three of the world's most charismatic men, but then nobody is going to confuse Newt Gingrich for Zac Efron. And I have to look at his fat face on TV more often than that free credit report song.

Shouldn't there be one party that unambiguously supports cutting the military budget, a party that is straight up in favor of gun control, gay marriage, higher taxes on the rich, universal health care--legalizing pot--and steep, direct taxing of polluters? These aren't radical ideas. A majority of Americans are either already for them or would be if they were properly argued and defended.

And what we need is an actual progressive party to represent the millions of Americans who aren't being served by the Democrats. Because, bottom line, Democrats are the new Republicans. "


http://www.hbo.com/billmaher/new_rules/20090619.html

[earth mom]

11. Kick for Truth! nt

[madokie]

12. Anything I read sourced to huffington post I take with a grain of salt

seems about as much bullshit comes from them as does from politico.

[Nikki Stone1]

13. I heard this on the news today

The local news that I trust most of the time.

[yodoobo]

16. This seems to happen with all the stimulous checks

I remember quite a few folks were upset to learn they had to account for the Bush checks on their year 1040.


Not sure why the IRS seems to always screw this up.