Turns out that the extra money in your paycheck every month isn’t a mistake that your employer made (I know you probably thought you were pulling a fast one). There was actually a reason that you were getting a few extra bucks each month; it was part of the making work pay tax credit that was a part of the Recovery Act, better known as the “stimulus plan”.
To be exact the increase you were getting each month was 6.2%...but as all dealings with the IRS there’s a catch and this time I hate to be the bearer of bad news…
If you didn’t properly adjust your withholdings you may actually owe at tax time. I know this isn’t what you’d like to hear, and trust me it’s the last thing I want to be sharing with you, but there are ways to make sure that you get all your deductions corrected and get the most out of your refund.
How you ask? Go see one of our expert tax preparers at a local office. The tax preparers can not only help you get the most money back possible but they will also explain all of the details as to why and how this credit and others like it work in your favor.
Don’t be discouraged or upset by this because all it means is that you’ve been getting the money back all year long and didn’t even know it!
For more information on the making work pay credit and others go to Libertytax.com and view my Series on Tax Tips