Making Work Pay Tax Credit Concerns for Married Workers

Two-income and married workers, as well as pension recipients, may be underwithheld on income tax in 2009 because of the withholding tax table changes made for the Making Work Pay Credit, reports National Taxpayer Advocate Nina Olson.

A sample "Notice to Employees" provided in Publication 15-T said the new tables will reduce withholding and that those employees can modify withheld amounts by filing a new Form W-4. While the W-4 itself has not changed, Publication 919, How Do I Adjust My Withholding?, has been re-released electronically by IRS with a new worksheet for the Making Work Pay Credit.

Nanny employers are instructed to apply the new federal income tax withholding tables released in late February no later than April 1.