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IRS: Review income tax withholding rates

The Internal Revenue Service reminds Floridians to check their 2009 federal income tax withholding levels to make sure they do not face any surprises when returns are due next spring.

The Making Work Pay Credit lowered tax withholding rates this year for 120 million American households. However, particular taxpayers who fall into any of the following groups should review their tax withholding rates to ensure enough tax is withheld: multiple job holders, families in which both spouses work, or workers who can be claimed as dependents by other taxpayers and pensioners.

Failure to adjust your withholding could result in smaller refunds -- or could cause you to owe tax rather than get a refund next year.

The IRS withholding calculator on IRS.gov can help a taxpayer compute the proper tax withholding.

In addition, the IRS reminds unemployed workers that the first $2,400 of unemployment benefits they receive during 2009 are tax-free for federal income tax purposes. People who expect to receive more than that should consider having tax withheld from their benefit payments in excess of $2,400.

Taxpayers can visit IRS.gov for more information about how to adjust federal income tax withholding.

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