Tax Update

You may have noticed a little extra in your paycheck lately. Smile! The America Recovery and Reinvestment Act of 2009 (“ARRA”) adjusted the amount of wage withholding so that workers would generally receive more money in their paychecks each week. However for some employees, this may result in not enough taxes being withheld during the year. In April 2010, you may find that you owe the IRS money.

The ARRA did not reduce the tax rates so your tax liability did not change. If you normally have to pay taxes on April 15 or if you receive a small refund, you may want to review your W-4 form withholdings. You may want to revise the amount of taxes withheld from your pay if: you have more than one job; if your spouse works; or if you receive income that is not subject to income withholdings such as capital gains, rental income, interests, dividends, and alimony. If not enough taxes are withheld through out the year, you will owe taxes and may have to pay interest and penalties. No one likes surprises on April 15!

This publication is for general information only and is not intended as formal legal advice. If you have any questions or need assistance, please contact Curtis & Curtis, P.C.

Curtis & Curtis, P.C. is a full service law firm located in Jackson, Michigan providing superior legal services and advice to individuals, families and businesses throughout mid-Michigan since 1901.

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