Millions will have to repay part of tax credit - Spokane, North Idaho News & Weather KHQ.com

Millions will have to repay part of tax credit

WASHINGTON. - More than 15 million taxpayers could unexpectedly owe taxes when they file their federal returns next spring because the government was too generous with their new Making Work Pay tax credit.

The Treasury Department's inspector general for tax administration issued a report Monday saying that taxpayers are at risk if they have more than one job, are married and both spouses work, or receive Social Security benefits while also earning taxable wages.

The tax credit, which is supposed to pay individuals up to $400 and couples up to $800, was President Barack Obama's signature tax break in the massive stimulus package enacted in February.

Most workers started receiving the credit through small increases in their paychecks in April.

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