Taxpayers Could Owe Stimulus Money Back to Government
I guess Uncle Sam never learned that it's not polite to take back a gift.
Recently it was announced that up to 15 million taxpayers could owe money from a tax credit back to the government come tax season. So what happened exactly? Under the Making Work Pay part of the stimulus package, employed Americans received a tax credit of $400 for individuals and $800 for married couples. Since it was a payroll credit, workers received the money by having less withheld on their paychecks - meaning more take-home pay. But somehow, government officials failed to take a few common cases into account when changing the tax withholding tables.
For instance, let's say you're holding down two jobs and making more than 20K at each. You could have received two credits - and will owe Uncle Sam $400 back when tax season rolls around. You may also have received too much money if you're married and both you and your spouse work and file jointly, if you're a retiree with income withheld on your pension or if you're a college student still claimed as a dependent - meaning Uncle Sam also wants a refund.
It's definitely a blow to hard-working Americans. But it's also an excellent reminder of why it's important to (The truth is, you never know what's going to pan out. So it's wise to keep a stash of savings just for such unexpected circumstances - at least enough to cover several months of paychecks, if you can swing it.) plan for the worst (while hoping for the best, of course!), whether you're talking about a paycheck, bonus, windfall or even a government handout.
The truth is, you never know what's going to pan out. So it's wise to keep a stash of savings just for such unexpected circumstances - at least enough to cover several months of paychecks, if you can swing it.
Think there's no way you can afford to save up that kind of cash when you're struggling as it is? Think again. If you're like most Americans, you probably have a pretty big debt burden - meaning you're stuck making payments to creditors each month. By reducing the amount you owe, you reduce both the amount of your debt, the amount you pay in interest - and the number of years spent paying interest.
Paying off your debts might not be a walk in the park, but bankruptcy can help set you down the right path by offering an affordable payment plan and protection from creditors. At DebtStoppers, we can identify a bankruptcy plan that meets your needs - just sign up for a free one-on-one debt analysis with one of our Atlanta attorneys. Because freedom from debt is the gift that actually keeps on giving.