Stimulus tax breaks: Will we receive less money on next year's refund?

By Kirk Mason (mason@wsbt.com)

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By Beth Boehne

Story Created: Feb 25, 2009 at 4:54 PM EST

Story Updated: Feb 25, 2009 at 5:01 PM EST

President Obama says the tax cut for most Americans will start showing up on paychecks in April.

Diane Kershner of Elkhart has a Good Question: “Does that mean we will receive less money at the end of next year on a tax refund?"

WSBT's Kirk Mason found out the answer.

The federal government is going to start taking less money out of most paychecks. A non-partisan group reports 97 percent of Americans will get relief; exactly how much depends on your situation.

The U.S. Treasury Department reports the average family will save $65 a month, which adds up to about $680 a year.

This should not hurt your tax refund when you file taxes next year.

Claude Renshaw, Business Administration Professor Emeritus from Saint Mary’s College, says there are two reasons this tax cut shouldn't hurt your refund.

Number one, the money is basically an advance on your refund.
And two, the money comes out of what you pay for Social Security.

Renshaw says when you file taxes next year, there will be a couple of lines at the end of your return to claim money if you didn't get the proper amount from this new tax cut.

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