Pay and Benefits: Watch Tax Trap
Alex M. Parker | Government Executive
January 21, 2010
Depending on how much you earn and whether you’re a full-time worker or a retiree earning an annuity, the new withholding tables can affect you differently. For instance, while many are seeing an overall increase in withholding, the National Active and Retired Federal Employees Association issued a statement to its members after receiving inquiries from federal retirees who experienced a decrease.
O’Toole echoed the IRS’ warning that due to the changes, some taxpayers might get hit with an unexpected tax bill this April, or in April of 2011, if they are not careful.
“People are going to have to pay attention, because they have to reconcile this credit when they file their tax return,” he said.
More information about the changes due to the tax credits is available at the IRS’ Web site.