| One of the many changes under the American | | | | denote Single, 1 allowance). If you cannot find it or if it is |
| Recovery and Reinvestment Act of 2009 (ARRA) is | | | | not on the stub, talk to your employer and request a |
| to change the federal income tax withholding tables for | | | | copy of the W-4 you submitted (you should always |
| 2009. Effective April 2009, the new withholding tables | | | | keep a record the forms you submit, just in case your |
| set forth under the ARRA may reduce the amount of | | | | employer is lax or if there is a discrepancy between |
| federal income tax withheld from your paycheck. The | | | | the records of your employer and your own). The |
| tax cut, also known as the Making Work Pay, will | | | | Form W-4 is the form you use to fill out your federal |
| provide an extra $13 or so in most individual | | | | income tax withholding allowances. You submit this |
| paychecks each pay - which will add up to about | | | | form to your employer who uses it to calculate the |
| $400 for individuals, $800 for couples filing jointly, by | | | | amount of tax you owe with each paycheck. You can |
| the end of the year. Do not worry, you should not be | | | | use the worksheet on the Form W-4 or you can go |
| penalized when you file your 2009 tax return - the | | | | online to the IRS website and use their free calculator. |
| tables have changed so that you are allowed to take | | | | Copies of the W-4 are also available on the IRS |
| home and keep that extra money. | | | | website. Talk to your accountant or your tax advisor |
| It is important to note, however, that the extra money | | | | too - after all, that is why they are there! Take the |
| in your paycheck is for one job only. If you work | | | | time now to review how much is being withheld from |
| multiple jobs or your spouse does, be sure to review | | | | your paycheck towards your income tax. You can |
| your withholding allowances. Somewhere on the stub | | | | submit a new W-4 to change the withholding amount, |
| of your paycheck should be your current federal | | | | so you pay a little more now, rather than owe more |
| income tax withholding allowance (for example, S/1 to | | | | than you can afford next April. |