New Withholding Rules Mean You Might Owe The IRS Next Year

New tax laws designed to boost the economy by giving you a bit more cash in your pocket might lead to problems for you next year if you’re in a dual-income household. The new payroll tax tables mean you could end up withholding too little without even knowing it and, though you’re welcome to take that long-awaited trip up the Zambezi, you probably won’t enjoy writing a check to the IRS come April 2010.

The Chicago Tribune gives the following example: “For a husband and wife who each earn $75,000, the new tables might mean a cut of $1,228 cut in payroll taxes. But their maximum new tax credit is only $800. So next year, they’d have to pay the extra $428 back.”

So, as soon as you’re done with last year’s taxes, double check the new amount of your withholding here.

Pay close attention to your paycheck [Chicago Tribune]

(Photo: bknittle)

Want more consumer news? Visit our parent organization, Consumer Reports, for the latest on scams, recalls, and other consumer issues.