Wake County Free Tax Prep
A Public Service of the Wake EITC Coalition
Free Income Tax Preparation by Volunteers
- Free preparation of your income tax return
- Free electronic filing of your return
- Free direct deposit of your return into your bank account(s)
- Free printed copy for your records
- Most income tax refunds are deposited in your bank account in 10 days!
Latest Announcements and Search Results:
-
No Comments
If you are fortunate enough to receive a steady income paycheck to paycheck, you may notice that your take-home pay in 2010 is less than in 2009. While there may be other factors in your case, the reason why your paycheck shrunk is probably the Making Work Pay credit.
Remember back in March or April of last year when you saw a slight increase in your paycheck? The reason for the increase of take-home pay then was that federal tax withholding was decreased in order to allow you to have your Making Work Pay Tax Credit during the year, not when you file. This amounted to $400 for singles and $800 for married couples, and was taken out of your withholding throughout the last 8 months of the year last year.
The Making Work Pay Tax Credit is back in 2010, but it’s benefit is spread out over 12 months, instead of 8. You’ll still see the full amount in your pay check, but it will coming in smaller pieces with each paycheck. So if nothing’s changed between this year and last, your take home pay would have shrunk slightly, though it still won’t go back to your pre-April 2009 level just yet (if the credit is not extended for 2011, then your take-home pay will go back down to “normal”).
Remember people with multiple jobs or spouse who both work might have been burned in 2009 by having less withheld than they should. If this is you, you may consider adjusting your W-4 so that more is withheld in 2010.
-
No Comments
In response to the current economic situation, the legislature has passed a bill that allows all Americans to receive their first $2,400 of unemployment benefits tax free in the 2009 tax year.
Does this mean that taxes won’t be taken out of my unemployment check?
This depends on the rules decided by your local unemployment office and the preferences you give. In most cases, you decide how much is taken out for both federal and local taxes.
While some opt to have no taxes withheld from their unemployment benefits because they need the money then, remember that if you receive more than $2,400 in unemployment benefits that amount over $2,400 is still subject to regular taxes.
Opting out of having taxes withheld from your benefits check may cause an unwelcome surprise come tax time next year.
What does this new law mean for my state taxes?
Tax law varies by state, so check your state’s revenue website for more information on any steps your state may have taken to make unemployment benefits tax free.
I was receiving unemployment earlier this year, but now I’m in a job. Should I adjust my withholdings?
If you received more than $2,400 unemployment benefits but did not have any tax withheld, plan on oweing more taxes next spring than you are used to. While each person’s tax situation is different, the best thing you can do for yourself is to plan ahead.
Also, if you are receiving employment income from more than one job (or you and your spouse both work), you may have complications from the Making Work Pay Credit.
Are the first $2,400 of my unemployment benefits tax free in 2010 too?
No. All of your unemployment benefits will be fully taxable.
-
No Comments
The Internal Revenue Service is cautioning some taxpayers that they could end up with far less withheld during 2009 than their tax liability suggests. This is due to the $400 reduction in normal withholding by employers for tax year 2009. Read the rest of this entry »
-
1 Comment
The American Recovery and Reinvestment Act was signed into law on February 17, 2009. Although many of the components may or may not directly affect many of us, there is one component that likely will. Read the rest of this entry »