President Obama signed into law the American Recovery and Reinvestment Act to help stimulate America's economy. As part of this act, many Americans will begin seeing additional take-home pay as part of the Making Work Pay provision of the act. While the IRS has not mandated this change to be effective immediately, TempWorks Software has already implemented the new tax tables. The new tax brackets will result in a refundable tax credit of up to $400 for individuals and $800 for married taxpayers filing joint returns.
Unlike last years Economic Stimulus Package, the IRS will not send a check to each taxpayer, but employers will instead withhold less from the employee's checks. Read more about this new stimulus act on the IRS Website.
Is a tax credit in the form of less payroll taxes better or worse than a lump sum check like the one received last year? Leave a comment with your thoughts!
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