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Federal Withholding question My son just got his first paycheck of the new year and his Federal withholdings were a good amount higher than last year (per week). He is a worker that just makes an average salary and nothing has changed in his situation from last year. I'm wondering if anyone else has seen this or knows why this would happen. I thought they extended the tax cuts so this would not happen? Thanks

By: Guest
Date: Unknown--
Response
0
They could go back down.

Employers have until Jan 31 to update withholding for new laws that were just passed.

Without knowing his circumstances, it's hard for us to say what happened.

[d] By: Guest
Date: unknown---
Response
0
did he notice a differrence

in the amount of SS withheld?

that should have gone down by 2% of his taxable social security wages

[d] By: Guest
Date: unknown---
Response
0
Change in withholding.

The reason why your son's tax withholding is higher is because of the expiration of the "Making Work Pay" credit. Because of the credit, the withholding tables were changed to allow people to get more money back from their paychecks. In turn, the credit was suppose to make up for the difference.

Now that the credit has expired, the withholding tables changed to reflect the loss of the credit.

However, you son should see the amount of Social Security withheld decrease by 2%. Depending on how much he makes, this may be less than the changes due to the "Making Work Pay" credit.

Did he end up owing last year? If not, and you don't expect him to owe this year, he should change his withholding status to exempt. That way, they do not unnecessarily take out withholding if he's not going to end up owing any income tax. That should make him happy.

[d] By: Guest
Date: unknown---
Response
What is 1 + 100



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for restaurants, kiosk, and any other retails business completely free. It can be used as windows cashier system or as full blown POS. You will able to print to kitchen, display orders on the kitchen screen, manage inventory, employee, report, customer loyalty offers, employee management, delivery address track and much more, all for free.

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