The government shutdown does not mean that people don't have to file their income tax return by the deadline. Image from Wikimedia Commons.

If the government has to shutdown because of the budget showdown, it will not affect the income tax return deadline. The Internal Revenue Service extended the deadline to April 18 this year because of a holiday in Washington D.C. However, tax return checks will be delayed.

IRS employees affected by shutdown

In the event of a government shutdown, there will be a few agencies that are unaffected in their operations. The Internal Revenue Service will not be among them, and all IRS agents and personnel will be told to stay home as long as the shutdown lasts. Unfortunately, according to Bloomberg, that does not mean that the deadline to file an income tax return is postponed. The government shutdown will, unless an unlikely deal is made at the 11th hour is made, begin on April 8.

Electronic filing urged

The IRS will not be able to receive any paper returns during the shutdown, delaying the issue of a tax refund check to those who filed a paper return. The IRS is urging taxpayers to file electronically because any online tax return filings will be processed as normal.

Government workers will be affected most

It is contended that the shutdown is going to occur because Congressional Republicans insist on defunding Planned Parenthood  because the organization provides abortions. Members of Congress, according to CNN, and the president, will still get their paychecks automatically. The people who will suffer are government employees. Those who are considered “unnecessary personnel,” or people who do not perform services for the government that guard the life or property of the people, will be sent home. Those who perform necessary services, like the Federal Bureau of Investigation and the military, will still have to go to work. However, they will have to work completely for free, and there’s no guarantee they will be reimbursed for that time.

Sources

Bloomberg

Time

CNN

Low-income taxpayers who didn't file for 2007 could have money coming thanks to the Earned Income Tax Credit. Image:; CC substack/Flickr

Unclaimed 2007 tax refunds add up to more than $1 billion, according to the IRS. Taxpayers who haven’t claimed their 2007 tax refund must get current on their tax returns by the 2011 tax deadline or the federal government keeps the money. Keeping the unclaimed 2007 tax refunds would be a drop in the bucket as far as deficit reduction because the gap between taxes owed and taxes paid amounts to more than $350 billion a year.

Collecting unclaimed 2007 tax refunds

Unclaimed tax refunds, which total about $1.1 billion, from 2007 are waiting for nearly 1.1 million taxpayers. About half of those unclaimed 2007  tax refunds are for $640 dollars or more. According to the IRS, some people are owed tax refunds because their income was too small to require filing a 2007 tax return, yet taxes were withheld from their wages anyway. Other taxpayers may have lost track of their quarterly estimated payments. IRS policy allows taxpayers up to three years to claim their refunds before the U.S. Treasury snaps them up. To collect the money, people have to file their 2007 tax return by April 18. If they haven’t filed for years 2008-2010, those returns have to be completed as well in order to claim the 2007 tax refund.

The Earned Income Tax Credit

In its announcement about unclaimed 2007 tax refunds, the IRS said the lower-income workers –the bulk of taxpayers who are owed money — could also be missing out on claiming the Earned Income Tax Credit on their 2007 tax return. The Earned Income Tax Credit, or EITC, could increase the amount of the unclaimed tax refund after the 2007 return is filed. The EITC returns taxes that low-income workers and people who lost their jobs paid during the tax year. Unlike most nonrefundable tax credits that only take the tax bill down to zero, the EITC can net a refund even for taxpayers with no tax liability. For example, if a taxpayer owes $800 and qualifies for a $1,000 EITC, that person gets a $200 refund. In 2007, taxpayers eligible for the EITC included individuals earning no more than $14,509, families with one child earning no more than $35,241 and families with two or more kids with a total income less than $39,784.

The tax gap

While the U.S. Treasury owes taxpayers about $1.1 billion in unclaimed tax refunds for 2007, the amount of taxes that go uncollected, known as the tax gap, amounts to more than $350 billion a year. The IRS estimates that only 86 percent of federal income tax due is collected on time. The $350 billion tax gap results from taxpayers who under-report income, underpay taxes or fail to file their taxes. The tax gap costs honest taxpayers as well as the federal government. Honest taxpayers pay about 20 percent more to make up for tax cheats because tax rates are set higher to cover the shortfall. In 2001, the tax gap placed a “surtax” of about $2,680 on every U.S. household.

Sources

CNNMoney.com

MyBankTracker

Bankrate.com

MSNBC

About.com

This is a sample of one of the IRS scam e-mails that have been spotted. (Photo Credit: CC BY-ND/Chris/Confessions of a Consultant)

Each tax season, unscrupulous individuals come out of the cyber-woodwork to prey on unsuspecting taxpayers. Unfortunately, 2011 tax time is no different. According to the Shelbyville Times-Gazette, a new IRS e-mail scam is circulating that can infect your computer with malware and viruses and even place your sensitive financial data in the hands of identity thieves.

The IRS does not sent personal tax e-mails

Dan Boone, an IRS media relations representative, told the Times-Gazette that the IRS never sends e-mails about specific tax returns.

“If you get an e-mail that looks like comes from the IRS and it looks like it has something to do with your personal taxes or business taxes, it’s a scam,” said Boone.

While there is not one specific IRS scam e-mail in circulation, there is a common theme. Identity thieves are phishing for social security numbers, bank account numbers or other personal information that will make it much easier to get their hands on your money or lines of credit in your name. Typically, the fraud e-mail dangles a refund due to the consumer but says the consumer must provide banking information on a special refund form in order to facilitate a “transfer” of funds.

“There is no refund form. Your tax return is your refund form,” said Boone.

How to handle an IRS phishing scam

If you receive an e-mail claiming to be from IRS.gov that asks for your personal information, do not click on any links in the e-mail or download/open any attachments, advises Boone. This can open up your computer to malware and viruses that can potentially steal sensitive data from your computer’s hard drive or record your keystrokes. Whether or not a link in an information-seeking IRS scam e-mail redirects a taxpayer to a website that looks like IRS.gov, the fact is that the IRS does not send taxpayers e-mails that require personal data.

The IRS encourages taxpayers to report fraud of any kind. Forward suspicious e-mails to phishing(at)irs.gov. Please note that a return receipt from the IRS will not be issued. For more information, consult IRS form IR-2006-49.

Sources

IRS.gov: Suspicious e-mails and identity theft

Shelbyville Times-Gazette

Beware e-mails that appear to be from the IRS

Jackson Hewitt is suing H&R Block for defamation. Image from Wikimedia Commons.

Tax preparation giant H&R Block is being sued by Jackson-Hewitt over an ad campaign blasting the short term loan program offered by Jackson Hewitt. Both companies offer some form of a refund anticipation loan or a loan against an income tax return. Tax season is when both companies make the bulk of their revenue.

H&R Block’s short term loan ads land company in court

An advertising campaign run by tax preparation giant H&R Block has resulted in the company being sued by competitor Jackson Hewitt, according to Reuters. The lawsuit alleges that H&R Block deliberately misled consumers about Jackson Hewitt through the commercials about a program called “Second Look,” which mentions Hewitt by name. The commercial offers a free review of returns prepared by competitors. The commercial says two of every three returns prepared by Hewitt had errors and had missed deductions. Hewitt is also claiming that Block made false statements about the short term loan program Hewitt offers, being refund anticipation loans, or RALs. Hewitt maintains that customers can get a loan of up to $1,500 in day.

The tax cash advance

Refund Anticipation Loans are a cash advance against an income tax refund. Filers who are due a refund can get a check for their expected refund amount, minus a fee for the preparer and loan lender. The tax preparer files the return and takes the income tax return as payment, while the borrower walks away with instant cash rather than waiting for a deposit or a check. H&R Block is unlikely to be able to lend these loans this tax season, as a key financier and partner of Block, HSBC, was forbidden from funding the loans by the U.S. Treasury.

IRS advises to e-file

The Internal Revenue Service does not have an official position on RALs but suggests people electronically file and elect to have their refund directly deposited. A refund can be deposited electronically in far less time than it takes for a paper check to arrive, whether the check is being sent to Jackson, Mississippi, or to Hawaii.

Source

Reuters

Wondering where your tax refund check is? Image: Flickr / substack / CC-BY-SA

The new year is here, and that means it is time for taxes. If you’re left wondering where’s my refund, there is a way to check. There are “where’s my refund” scams out there, so it is important to make sure you’re getting your information from the right place.

Where’s My Refund – the IRS service

The IRS offers an online service to help you track your tax refund. Called “Where’s My Refund,” the service taps into the IRS database to track where, exactly, your tax refund stands. It provides information on the most recent tax year, and stays on the “Where’s My Refund” website until the second week of December. After that point, the system clears in preparation for the next year’s tax refund information.

How to get your refund information

Getting information about where your refund money stands does require you to provide some information to the IRS website. You need to have your Social Security number, your filing status, and the whole-dollar amount that your refund should be. Enter this information into the IRS Where’s My Refund website, and it should return information on the status of your refund. This will only work if you have actually submitted your tax return. If you have not yet submitted your tax return, the IRS website cannot give you any information.

Watch out for Where’s my refund scams

There are plenty of spammers and illegitimate websites out there that try to get your information by playing off people trying to find the “where’s my refund” question. The IRS does not send out emails asking for personal information. If you do get an email that claims to come from the IRS, do not click on any links or reply to those emails. Instead, you should only go to IRS.gov. You should also report any emails asking for personal information to the IRS, because they are technically illegal.

The Treasury is trying out a pilot program; tax refunds will be offered on a prepaid Visa debit card. Image: MoneyBlogNewz/Flickr.com/CC-BY

The Treasury is trying out a pilot program to save a little fast cash on disbursing tax refunds this year. People who don’t elect direct deposit could receive a prepaid debit card in lieu of a traditional paper check. They will also be able to hold onto and keep using the card.

New way for the Treasury to save a little fast cash

The United States Treasury has announced a pilot program for tax season that concerns how people receive tax refunds, according to CNN. When people file income tax returns, they can elect to receive a direct deposit of their funds or choose a paper check that they’ll receive in the mail . This year, those who don’t choose direct deposit of fast cash for their tax refund or don’t have a bank account could be alerted to the a new option. More than 600,000 taxpayers who make $35,000 or less annually will be informed that they could receive their refund on a prepaid MyAccountCard from Visa if they choose.

The tax refund card

People who chose the debit card option will have their tax refunds deposited into an account, and receive a prepaid debit card by mail. Taxpayers who want to can hang onto the funds as savings in case they need a loan until payday or until they finally book a trip out to Mississippi to visit relatives. The cards are being issued by Bonneville Bank, and the Treasury will be working with the GreenDot company on the pilot program. People can keep reloading and using the card as long as they wish.

Terms of the card

The tax refund card will be just like any other preloaded debit card. There will likely be an annual service fee and various fees for withdrawing money and so forth. The program could save the government a lot of money. Each direct deposit costs the government a dime, but each paper check costs about a $1.

Source

CNN

Tax refund checks and refund anticipation loans could be rendered obsolete by tax refund debit cards from the IRS. substack/Flickr photo.

Tax refunds for people without bank accounts are becoming a problem in the era of electronic banking and tax filing. The Treasury Department thinks tax refund debit cards could be the solution. People without bank accounts, the so-called “unbanked” or “underbanked,” don’t benefit from the electronic funds transfer of a tax refund to a bank account from the IRS. Tax refund checks can take weeks to arrive. Unbanked people often resort to costly “refund anticipation loans” to get their money quickly. Plus, the overhead of printing and mailing checks costs millions of taxpayer dollars.

Tax refund debit cards bring speedy returns

The biggest advantage offered by tax refund debit cards is speed. The Associated Press reports that while direct deposits show up in bank accounts in eight to 15 days, tax refund checks can take six weeks to arrive in the mail. People without bank accounts are likely to borrow against their tax refunds, paying steep fees for a refund anticipation loan. Starting next year, a pilot tax refund debit card program will be offered to several hundred thousand taxpayers. The tax refund debit cards will work like checking accounts — without the checks or the bank. The cards will be insured like bank deposits and will include consumer protections from unauthorized purchases if they are lost or stolen. The cards may also be able to store other income and include bill-paying services.

Taxpayers encouraged to get bank accounts

The Center for Economic Progress estimates up to 26 million taxpayers could benefit from tax refund debit cards. That number was reached by subtracting direct deposit refunds from the 2010 tax season– 70.3 million — from total tax refunds of 96.3 million. Automated Trader reports that the Obama administration is exploring ways to encourage more people to get bank accounts. A $50 million request has been submitted to Congress for the 2011 budget to create “Bank on USA,” a program to help support state and local efforts to get more low-to-moderate income taxpayers into mainstream banking. An FDIC 2009 survey showed roughly 9 million households were without bank accounts.

Nipping refund anticipation loans in the bud

The tax refund debit card initiative is part of a broader program by the Obama administration to curtail federal policies that lead to risky financial decisions and provide people with better financial alternatives. The Wall Street Journal reports that the most recent policy change was announced last month. beginning in the 2011 tax season, the IRS will no longer provide tax return companies with “debt indicators” used by banks to process refund anticipation loans. The move makes it harder for banks to make the short-term loans, which come with high fees that pencil out to annual percentage rates from 50 percent up to 500 percent.

When the IRS ended debt indicators, refund anticipation loan facilitators like H&R Block raised objections as their stock price fell. jalefkowit/Flickr photo.

Debt indicators — IRS information about back taxes and other debts taxpayers owe — are going away. The IRS has sent debt indicators to tax preparers to let them know if their customer’s refund might be held to cover back taxes and other debt. Debt indicators are used by refund anticipation loan banks to decide whether to make short-term loans to customers backed by their tax refund.

Debt indicators gone starting with 2011 tax season

Saying they are no longer needed, the IRS announced Aug. 5 that it will stop providing debt indicators starting with the upcoming 2011 tax season. Electronic filing and direct deposit lets taxpayers get their refund in a matter of days. The IRS said that eliminates the necessity for refund anticipation loans. Companies that profit from refund anticipation loans say the elimination of debt indicators limits an essential service they offer to the unbanked and underbanked.

Debt indicators: singling out the delinquents

The debt indicator is a key underwriting tool refund anticipation loan banks use to determine whether they will loan, how much to loan and at what interest rate. Journal of Accountancy reports that until now, when a tax preparer e-filed a client’s tax return, the IRS included a debt indicator in the acknowledgment file if the taxpayer would have any portion of the tax refund offset for delinquent taxes or other debts, including unpaid child support or delinquent federally funded student loans.

IRS criticizes refund anticipation loans

Short-term refund anticipation loans have been criticized by consumer advocates for charging high interest rates and fees in exchange for providing cash just a few days before the tax refund arrives. In 2008, 8.4 million taxpayers paid more than $738 million in fees for refund anticipation loans, according to the National Consumer Law Center. IRS Commissioner Doug Shulman told the Associated Press that refund anticipation loans are often targeted at low-income taxpayers. He said with electronic filing and direct deposit it takes 10 days or less to get a tax refund. He also said:

“I think it’s unfortunate that there’s a lot of hardworking Americans that are in a financial situation where they have to pay a substantial fee to access their refunds a week or two before they can get it from the IRS.”

Refund anticipation lenders unhappy

Companies that facilitate refund anticipation loans argue that debt indicators let taxpayers who are strapped for cash get their money faster. MarketWatch reports that Alan Bennett, president and CEO of H&R Block, said the IRS decision to ax the debt indicator would hurt consumers with significantly lower refund anticipation loan approval rates and higher costs for the most vulnerable taxpayers. He said these consumers are often unbanked or under-banked and will be forced to seek more expensive and unregulated credit. H&R Block said the demise of debt indicators will dent 2011 profits 5 cents a share, sending its shares down 3 percent.

If you’ve ever used a tax preparation service and been owed a refund, chances are you’ve also been offered a refund anticipation loan (RAL). More than 12 million Americans receive a tax refund every year, and many of them succumb to the temptation to take out an RAL. If you want your money within just a couple of days, you can pay around $75-150 for an RAL, or for an extra $25-55 you can even get your refund on the same day. That’s on top of the fees you pay for your taxes to be prepared (typically from $100 to $300) and filed (typically from $40 to $75).

Back when you had to mail in tax forms and wait for months before receiving your refund check, tax refund loans made a lot of sense. But now you can file electronically and, in most cases, get your refund wired to your bank account within a week or two. So unless you’re really flat broke, you can probably hold out until the money arrives. Yet Americans spend $900 million a year on loan fees for tax return advances. To make sure you can avoid paying these fees and still get fast access to your refund money, here are some steps you can take:

Change your tax withholding status

If you don’t pay too much tax in the first place, you won’t have to wait for a refund. Anyone who is paying more tax than they should be can ask for a withholding adjustment. Let’s be clear here: a tax refund is not a gift or windfall. It’s your money – money that you worked hard for and then loaned the government without even charging interest. Wouldn’t it be better if you and your family could have access to that money throughout the year, and not just at refund time? Especially now that times are tough for many of us, surely you could use it to make life a bit easier, or put it in your retirement account.  Be careful not to overdo it, however, when you change your exemption status, or you could end up owing money at tax time.

Save your “overpayment” money each month

Some people figure that by intentionally paying too much tax, they’re putting that money out of reach so they won’t be tempted to spend it. If this sounds like your game plan, find a savings account with withdrawal restrictions that will stop you from using the cash for frivolous purchases. Perhaps your employer can deposit the appropriate sum in that account on each payday so that you won’t miss the money. You’ll even receive some interest on your balance now!

File your taxes electronically

More and more taxpayers are discovering how convenient it is to file online rather than mailing in paper documents. If you’re owed a refund, you’ll find out quickly, and the funds will be in your bank account within a week or two. With just a little patience, you’ll have your refund without taking out an RAL.

Open a bank account if you don’t already have one

Lots of people don’t have bank accounts, so they miss out on the opportunity to have their tax refunds deposited directly. That’s one of the major reasons so many people get RALs. If you’re one of the “unbanked”, you can save a lot of money by opening a bank account, even if it’s just for a few weeks while you’re waiting for your refund.

Be patient, plan ahead, and you won’t need to spend so much time or any money at all to get your tax refund. You’ll be able to take charge of the money — let’s not forget – that is your own, and use it however you want.  You might even decide to put it to work earning some interest for you.

The truth about Tax Refund Loans

The truth is, tax refund loans or refund anticipation loans (RAL) are very expensive. Just like payday loans and cash advances, tax refund loans must be handled with absolute care. In fact, several politicians have tried to cut down on RALs over the past years, citing interest rates on these types of loans exceeding 500% in many cases. What then can a person in need of immediate financing do to obtain money fast?

Consider Payday Loans

If you really need money now, consider payday loans or  installment loans. The difference between a tax refund loan and a payday loan is that one is easier to work with than the other. Payday loans are not only cheaper, but they are much more flexible to work with. You pay a flat one-time fee of $15, $20 or $30 (depending on the lender and/or loan amount) and you will have the money to relieve some of your immediate cash needs in no time. You get just the right amount of money to hold you over – no stress, no pressure, no additional money loss.

On the other hand, if you choose to obtain a refund anticipation loan, your “anticipation” could certainly backfire on your finances. You lose more money in the end –- money that could actually be going towards your savings fund and other important living expenses.

Save, save, save!

Saving money has become the top concern in the minds of many consumers these days. Through the ups and downs of the economy, more people are finding out that there is nothing more shielding than to be financially prepared. Having a sufficient amount of savings will benefit you more than any type of loan made available for your convenience. So, if you feel the need of a tax refund loan, consider other options first before making a final decision. Your wallet will be thankful for it.

Start Your Payday Loan Application HERE!

Consumers looking for fast cash should use their tax refund wisely. When consumers get a tax refund they are receiving a government repayment made up of the principal of a year-long loan. Interest isn’t included in the payment and a lot of consumers are paying too much during the year. The way to manage this is to adjust withholding at times when a situation changes, i.e. a home purchase, sale, marriage, etc. Taxpayers who end up getting a good tax return should be wise with the extra money and carefully put the funds to good use.

Using a refund to pay down debt

By far the most important thing to do with a tax refund is to pay down debt. Since the recession forced people into hefty debt, a record number of people have been overcome with large interest rates. The accumulating debt needs to be paid down if anyone is to get out from under financial stress. Using a tax refund to pay down debt can be a good idea. That doesn’t just include credit card debt, but also can mean paying down a mortgage, car loan or student loan. For example, paying one double mortgage payment a year can shave the loan’s lifespan by two years.

Building an emergency fund

Tax refund money can also be used to build up an emergency fund. One thing consumers learned throughout the recession was that cash reserves are the only sure-fire thing to count on. Credit lenders closed their doors when the economic downturn was the most difficult. Consumers who thought they would keep one emergency credit card stored away were surprised when lenders closed the unused cards or at minimum, slashed limits.

The lesson to be learned was that liquid assets are crucial for every consumer to have. When it comes to a tax return, the money can be used to start a good financial reserve. This can guard against emergencies and disasters that need immediate cash. Experts suggest every consumer should have between three to six months worth of expenses saved up as emergency money.

Putting a tax refund towards a retirement savings

Fast cash from a tax refund can also be channeled towards retirement savings. Saving for retirement should be a priority for every consumer. With the dissolution of Social Security, more and more consumers are going to have to have their own retirement plan to sustain them. Experts caution that other priorities should not take precedence. Mark Zandi of Economy.com said, “Too many young parents prioritize their children’s education fund before their own retirement. The bottom line is – education can be funded through loans, grants, scholarships and part-time work. Retirement can’t.”

Fund an education account

On the other hand, if a consumer has their own retirement fund on track, using a tax refund for education may be a wise idea. It’s never too early to start saving for college and the cost is going to rise steadily over the next few decades. There are many savings plans available, including an ESA plan and 529 plans. Though there is the sacrifice of putting cash into the account now, it will save money in the long fun and a good education will be critical in years to come.

Tax refund money

Gone are the days when consumers viewed a tax refund as fast cash to spend frivolously. In today’s market, it’s crucial to manage money wisely. It’s especially crucial to manage money that comes to consumers in hefty amounts. As Zandi added, “Substantial amounts of money don’t come to consumers that often, so a tax refund is something everyone should be ready to take advantage of, and use in the most beneficial way possible.”

Need a tax refund loan? Apply HERE!

Making Work Pay will cost millions of American taxpayers anywhere from $250 to $400 this coming tax season. These people may need payday loans. (Photo: flickr.com)

Were you one of those people who were elated to hear about the “Making Work Pay” tax break that President Obama gifted to the American people? Truly, it did benefit many people. Workers were paid back to the tune of 6.2 percent of their earned income, with a max of $400 for individuals and $800 for married couples filing jointly. Those singles making more than $95,000 and couples making more than $190,000 weren’t eligible, but then they didn’t have to be.

With that refund, those eligible didn’t have to resort to short term loan options like payday loans. However, for millions more, perhaps they’ll be wishing they had gotten a payday loan instead of having to pay back hundreds of dollars. And don’t even get me started on the farce that is tax refund loans (aka refund anticipation loans).

15-Million-Plus Owe Uncle Barack $250 Apiece

And that’s just the retirees!

That’s what the Associated Press is reporting as consumers are attempting to dig their way out of the blight of the recession. People are looking forward to some debt relief without the pain of tax refund loans, and in this instance, perhaps even without payday loans. But according to the IRS, many of people are going to be disappointed. What goes around comes around … and bites you in the hindquarters.

Who Will Owe Money Because of Making Work Pay?

We’re talking those with more than one job and married couples where both parties work (that’s a big one). These groups will have to repay $400, which could mean a smaller refund or even a tax bill. Even those in their golden years with rusty old Social Security and taxable wages will not have the lamb’s blood painted on their door. Their Obama giveback will be $250. Pony up, America!

Ah, the Memories of Magic Refunds and High Hopes

Individuals felt up to $400 worth of love for Making Work Pay, while couples doubled their pleasure up to $800. It was all part of the revolutionary stimulus package back in February of 2009. It pumped paychecks full of chicken broth, which most consumers promptly spent. If you spent it and you aren’t sure if you’re having enough withheld from your paycheck, click here for a handy calculator. If you don’t like what you find, file a new W-4… fast, because the 2009 tax year is almost over! The IRS has known about this problem since last spring, and they’ve been urging people to check their withholding amount since then.

Picking Up the Pieces of a Shattered Stimulus Plan

Payday loans may be short-term glue for what ails your budget, but this whole stimulus thing replaced pro-mise with pro-blems. For instance, a single worker with two jobs could get a $400 Obama-boost for each job, even though he’s only eligible for one $400 buff. That will have to be paid back. Similarly, with married couples where both work, if they combine to earn over $13,000, they enter a new tax bracket. There’s a total $1,200 boost instead of the $800 that should have been allowed. That’s $400 to pay back, friends. The Census Bureau says that 55 percent of all married couples in America are in this boat. That’s 33 million couples with 400 reasons to love Making Work Pay.

Wait, Don’t Forget Victimized Students

If they’re single and work part-time, they were eligible for the $400 credit. But, all my payday loans and garters, if their parents claimed them as a dependent, they didn’t qualify! In this case, Making Work Pay means paying back that $400.

Retirees Making Work Pay for Obama

More than 50 million Social Security recipients got $250 lump sum payments each, all thanks to Making Work Pay. But they were already receiving the credit for being employed, so the $250 refund will have to be paid back. It keeps getting better for American citizens.

Don’t Make the Same Mistakes in 2010

The Making Work Pay credit is still available, so tread cautiously. You certainly don’t want to create the same problem for yourself again. The average refund was about $2,800, so this Making Work Pay giveback will not result in a bill for many. However, some won’t be quite so lucky.

Iowa Sen. Chuck “Seppuku” Grassley of Iowa took a break from his more breathless moments to nail Making Work Pay on the head. It was “another unfortunate example of what can happen when Congress and the White House rush through legislation like the stimulus without thinking through the consequences,” he told the AP.

(Insert forehead slap and “I shoulda had a payday loan!” here)

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