Making Work Pay Credit Woes

What has the making work pay credit done for you? Most of us received the equivalent of $800, through reduced withholding. The reduced withholding was just a vehicle to get the money back into the taxpayer's hands quicker. It was really a reduction in the FICA tax, but that was how they were going to pass it down to the masses, instead of issuing checks. This way they could assure that the credit only went to hard working Americans. Right.

How many of you married couples changed your W-4 withholding when this happened? So far this busy season, every married, no kids couple owes something close to $800. Dandy. We all know that most people think the competence of the accountant determines whether or not they get a refund. Now likely we will lose all of our married, no kid clients because they think it is our fault.

For a simple way to avoid this: When you get your next pay stub, bring it to me (both your's and your spouse's, if applicable). Ask me -- am I withholding enough tax? I can help.