I recently posted about my taxes a few posts down and wanted to post about a discovery I have made in regard to my tax issue.  I briefly stated that I wrote a check to the IRS last year for $43 which  I was ok with, but this year it looks like I will be writing a check for about $600.00.  The reason why this has fired me up as nothing as changed other than we made a few thousand more this year, but I also bumped up my 401k contribution to 15% in the last quarter for 2009.  So now I decided I probably need to adjust my withholding to make sure I do not have to pay this amount or more for next year.

I accessed irs.gov to review the withholding tables to figure how much less I would bring home per week in order to budget for our household expenses.  Check out bullet point number 2 below that I cut and pasted from the website and this is what I discovered!! The amount of money that we received in our paychecks was increased due the to the American Recovery and Reinvestment Act of 2009!! At no time do I remember it being said by the Government that by getting this extra money in our paycheck we would need to increase our withholding later on to make sure we did not have to pay taxes!!  So in other  words our Government loaned us our money all year and then we get to pay it back at whatever your tax rate is!!  Now, I am not an accountant or tax expert so anyone who reads this tell me where I am going wrong and I will gladly listen.

I think is a bunch of crap!! It is our money in the first place and they so kindly gave us some of it back during the year and now they want some of it back!! This is not a rant about Democrats or Republicans in so much as it is our government ripping us off.  I would recommend that you vote against any incumbent in office in the November election!! We have the power to term limit these people and we need to use it so they know that we the people are tired of this. (Cut and pasted from the irs.gov website below)

IRS Withholding Calculator

If you are an employee, the Withholding Calculator can help you determine whether you need to give your employer a new  Form W-4, Employee’s Withholding Allowance Certificate to avoid having too much or too little Federal income tax withheld from your pay. You can use your results from the calculator to help fill out the form.

Who Can Benefit From The Withholding Calculator?

  • Employees who would like to change their withholding to reduce their tax refund or their balance due;
  • Employees who may need to increase their withholding due to the Making Work Pay provision in the American Recovery and Reinvestment Act of 2009, that caused changes to the federal income tax withholding tables and may result in too little tax being withheld;
  • Employees whose situations are only approximated by the worksheets on the paper W-4 (e.g., anyone with concurrent jobs, or couples in which both are employed; those entitled to file as Head of Household; and those with several children eligible for the Child Tax Credit);
  • Employees with non-wage income in excess of their adjustments and deductions, who would prefer to have tax on that income withheld from their paychecks rather than make periodic separate payments through the estimated tax procedures.