DALLAS — A government mistake means millions of people will owe more than expected on their taxes this year.
The Internal Revenue Service gave some workers $400 too much for the "Making Work Pay" tax credit set up by President Obama.
Now that money will have to be repaid in one lump sum when income taxes are due next April 15.
One of the groups most affected by the bureaucratic slip-up: married couples.
If you and your spouse both work and earn more than $13,000, each has been credited $200 too much. That means you'll owe Uncle Sam $400 when you file jointly.
The amount owed goes down for couples making more than $150,000 a year because they weren't eligible for as much of the tax credit.
SMU Cox Business School professor Mike Davis explains the plan was intended to add about $33 a month to everyone's paycheck.
"The problem is, some people got this twice; some people got $66.66 — like if you worked two jobs, you would've gotten the extra $33 for one job, another $33 from the other job," David said.
Other groups affected include:
- workers with more than one job
- social security recipients who continue to work
- working college students still claimed as dependents
E-mail greaves@wfaa.com
