[pps-news] Tax Changes due to Ecomomic Stimulus Bill

[Roberta Nardico]

March 13, 2009

 

TO:     PPS Users and Staff

 

FR:      Payroll Office

 

RE:     Tax Changes due to Economic Stimulus Bill

 

 

 

Economic Stimulus Bill Brings Tax Changes

 

The American Recovery and Reinvestment Act of 2009 ("Recovery Act"),
which  was signed into law on February 17, 2009, includes changes in
income tax withholding and other items that may affect your paycheck:

 

Changes in Income Tax Withholding 

The legislation authorizes a tax credit of up to $400 for eligible
single individuals and $800 for those filing a joint tax return. This
tax credit phases out completely at adjusted gross income levels of
$190,000 for couples filing jointly and $95,000 for single filers.
Non-resident aliens and individuals who can be claimed as tax dependents
are not eligible for the tax credit. 

 

The Treasury Department has issued new withholding tax tables to reflect
the tax credit. These new withholding tables, which will be used to
compute federal income taxes with paychecks dated April 1, 2009 and
later, may reduce the amount of income tax withheld from your wages. 

 

You do not have to submit a new Form W-4, Employee's Withholding
Allowance Certificate unless you do not want withholding reduced
because, for example, you have more than one job or you are married and
your combined income places you in a higher income tax bracket.  You
would need to complete a new Form W-4 and claim fewer withholding
allowances on Line 5 or request additional tax amounts withheld on Line
6.  You can change your tax withholding online, by signing in to your
personal account on At Your Service
<https://atyourserviceonline.ucop.edu/ayso> .

 

For additional help, get IRS Publication 919, "How Do I Adjust My Tax
Withholding?" or visit the IRS website at www.irs.gov
<http://www.irs.gov/>  and use the "Withholding Calculator."

 

Other Changes:

 

*	There was an increase in pretax combined transit and vanpooling
benefits from $120 to $230 per month. Contact your payroll
representative to make changes to the transportation election.

 

*	Low and moderate income workers may be eligible for the
refundable Earned Income Tax Credit ("EITC"). The Recovery Act increases
the EITC credit percentage for families with three or more qualifying
children for 2009 and 2010.  The amount of the EITC is based on, among
other factors, the presence and number of qualifying children in the
worker's family, as well as on adjusted gross income and earned income.
See IRS Publication 596 for more details.

 

 

 

-------------- next part --------------
An HTML attachment was scrubbed...
URL: http://lists.ucr.edu/pipermail/pps-news/attachments/20090313/e1cb57ef/attachment.html