Employment-IRS Reminds Taxpayers To Check Amounts Being Withheld As Federal Income Tax From Pay And Pensions

As a tax tip, the IRS has reminded taxpayers, particularly multiple job holders, families with two working spouses, workers who can be claimed as another’s dependent and those receiving pensions, to check the amounts of federal income tax being withheld from their pay and/or pensions. Checking these amounts is advisable, since the Making Work Pay Credit lowered tax withholding rates, possibly resulting in lower tax refunds or tax being due in 2010.

Also, as to increasing withholding from pension payments, pension plan administrators or pension payors should be aware of the optional adjustment procedure for pension withholding announced in Notice 1036-P, Additional Withholding for Pensions for 2009.

The tax tip is here.