American Recovery and Reinvestment Act of 2009

Due to this new act an employee will have the Federal Income Tax portion of their paycheck reduced for the balance of the 2009 tax year. This reduction will be about $400 in a 12 month period of time or about $15 per pay period on a bi-weekly basis.

For most taxpayers this is not something that needs any adjustments but for some that will owe Federal Income Tax at the end of tax year 2009 this may be a problem. If you are under withheld then there will be a penalty for under withholding. The only way to figure this would be to actually go to the IRS website and do the calculations www.irs.gov/. There is a calculator that can be used if you have the information that is on your current pay check stub.

This reduction is the NEW stimulus that our new president has provided to you. For those who receive Social Security checks you will see an addition $250 in your checks over the next 12 months. That addition may or may not cause you to pay additional taxes if you also have other income that you report on an annual basis.

As a matter of fact there are many things that are useful on the IRS site. You can even check on the status of your refund. Check it out at www.irs.gov/