Millions May Have To Pay Back Obama Tax Credit

“Making Work Pay”. This is the catchy name for the tax credit Obama pimped as his signature goody in the massive Porkulus package enacted in February. Most workers started receiving the credit through small increases in their paychecks in April. The IRS issued new withholding tables to make the credit available.

Sadly, more than 15 million Americans are at risk for having to pay the credit BACK because the Treasury department didn’t take into account the fact that many married people both work. In this economy? SERIOUSLY?

The credit pays workers 6.2 percent of their earned income, up to a max of $400 for individuals and $800 for married couples filing jointly. Individuals making more than $95,000 and couples making more than $190,000 are ineligible, natch.

Treasury also didn’t take into account Social Security recipients with jobs that provided taxable income. Those folks got Obama’s whopping $250 gift (also from the Porkulus), and some of them got the tax credit too. Hope you didn’t spend the gift, grandma, because you’ll be paying it back when you file your 2009 taxes.

J. Russell George, Treasury Inspector General for Tax Administration allows that “More than 10 percent of all taxpayers who file individual tax returns for 2009 could owe additional taxes.”

And this government wants to run our health care AND implement another stimulus. Pink slips are coming.

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