Stimulus stress

[huselton1]

Some of our employees are worried that they will now OWE taxes at the end of the year due to the reduction from the stimulus. Should I reassure them that this is not the case or encourage them to have additional withholding? Any wisdom. Thanks:confused:

[Paul Mayer]

This is not like a bonus check that is not being taxed, it is a tax cut. (lower taxes)

When Bush lowered the taxes a few years ago, did they ask you if they would owe more at the end of the year?

Whenever taxes are raised or lowered, that is what they are calculated on at the end of a year. If they doubled your taxes, you would not get half of it back at the end of the year. It's just what you owe.

They lowered the taxes for millions of Americans and this is the time we really need this extra cash to get moving back out of the recession. Since it is retroactive, many will get money back at the end of the year because of what they paid in the last few months before the new rates were released. Now that's a bonus! :D