IRS encourages Carbon residents to check 2009 federal income tax withholding levels
The United States Internal Revenue Service urges Carbon County residents to check 2009 federal income tax withholding levels to make certain that they do not face any surprises when returns are due next spring.
The making work pay credit lowered tax withholding rates in 2009 for 120 million American households, according to the IRS.
However, Carbon County residents who fall into several specific groups should review withholding rates to ensure enough tax is withheld. The particular groups include:
â¢Multiple job holders.
â¢Families in which both spouses work.
â¢Workers who can be claimed as dependents by other taxpayers and pensioners.
Failure to adjust withholdings could result in potentially smaller refunds or may cause people to owe tax rather than get a refund next year, cautioned the federal agency.
So far in 2009, the average refund amount registers at $2,675 and 79 percent of all federal returns received a refund.
Because retirees typically have withholdings from pension payments, plan administrators or payers should be aware of the recently announced optional adjustment procedure for pensions, pointed out the IRS.
In addition, Social Security beneficiaries,Â supplementalÂ securityÂ income recipients, disabled veterans and railroad retireesÂ residing in the Castle Valley region who receive 2009's one-time $250 economic recovery payment should be aware thatÂ the making work pay credit will be reducedÂ by the $250 amount, continued the IRSÂ
Therefore, the individuals in question may also want to review federal tax withholdings.
The calculator available on the Internet at IRS.gov can help a taxpayer compute the proper federal withholding.
If the result suggests an adjustment is necessary, the taxpayer should submit a new W-4 form, withholding allowance certificate, to his or her employer or adjust the amount of quarterly tax paid.
In addition, the IRS reminds displaced Carbon County workers that the first $2,400 of unemployment benefits they receive during 2009 are tax-free for federal income purposes.
People who expect to receive more than the designated amount should consider having tax withheld from their benefit payments in excess of $2,400.
Residents should use the voluntary withholding request or the equivalent form provided by the payer to request withholding to begin or end.
Carbon County residents with Internet access may visit IRS.gov for more information about how to adjust federal income tax withholding.
The website also has details on various tax incentives in the American Recovery and Reinvestment Act as well as downloadable forms and publications.
Free tax forms and publications are also available by calling the IRS toll-free at 1-800-829-3676.