Economic Stimulus Bill Provides Tax Benefit to USF Employees
TAMPA, Fla. (March 20, 2009) -- Beginning with the April 10 paycheck, USF employees will receive a tax benefit through a reduction in the amount of federal income taxes withheld from their pay for the remainder of 2009 and all of 2010.
This tax reduction is a key provision of the economic stimulus bill ("The American Recovery and Investment Act") signed into law by President Obama on February 17. The act provides tax benefits to individuals under the "Making Work Pay" tax credit.
"Making Work Pay" provides an annual tax cut of $400 for individual filers with an adjusted gross income of no more than $75,000, and $800 to joint filers with an adjusted gross income of no more than $150,000. Tax payers will receive the entire annual benefit ($400 or $800) during the remainder of 2009.
The tax withholding reduction will take place automatically. Employees are NOT required to complete a new W-4 form. Employees may wish to consult their tax advisor to confirm that their new withholding will cover their tax liability. This may be especially important if the employee and his/her spouse both work and are eligible for the reduction.
Additionally, the Earned Income Tax Credit will be expanded to cover families with three or more children.
For more information, review the IRS Notice here, or contact Lena Collins or Brett Jordan at 974-7955.