The new "stimulus" plan

mamarazzi

Okay, so we are all getting "extra" money in our paychecks now.  It doesn't amount to much for us, but every little bit helps, I suppose.

However, I heard a caller (an accountant) on the radio yesterday say that the stimulus didn't change the tax brackets and basically it was just a refund being spread out over the year.  So, even though it's not a lot each month, over the course of the year it could add up to around $1,000 being knocked off our refund.  She recommended changing withholdings to ensure people didn't owe.

Have you heard this?
 

kjlrs

somebody posted this the other day (maybe on 3rd tri) but another person responded that there will be a tax credit at the end of the year. so the tax brackets could remain the same if you get a tax credit. this makes some sense to me because obama repeatedly discussed refundable tax credits during his campaign - being that we would give bigger "refunds" to people not paying any taxes at all.

anyway, i keep meaning to look into it to be certain.

elm1032004

They basically changed the withholding tax rate so you'll get a little extra money in your check each week.  It amounts to an average of $50 per month.  If you and your spouse work it would be around $100 per month.  The tax brackets are the same.  It's also not going to do much to stimulate spending, most people will barely notice it.  DH and I both started getting the adjusted amount in March.