Obama's Tax Credit Might Have to be Returned by Retirees and Families

Obama giveth but the IRS taketh away. It seems the "making work pay" tax cut for 95% of Americans might have to be returned by quite of those Americans.

It will come as a shock to two income families, some federal workers, retirees, and young people with more than one low paying job that they will be expected to give back some portion of that “extra” money that Obama claimed he was giving them come April 15, 2010.

So the people hit will be two income families where both spouses work. Which makes up just about 55% of all married couples. Also if you have two low paying jobs or are a teenager that is claimed on your parents taxes then you have to pay. So that hits most of the people that would actually benefit the most from an extra $400. It also hits about 20 million retirees as well:

Retirees who have federal income taxes withheld from pension benefits also are getting an income boost as a result of the new withholding tables. However, pension benefits are not earned income, so they don’t qualify for the tax credit. That money will have to paid back next year when tax returns are filed.