Attention!! Examine Your Paycheck: Did The IRS Just Rake More Off The Top?

CINCINNATI (TDB) -- Paychecks subject to the federal income tax seem to be shaved by new withholding rates that took effect this month. A $50,000 plus salary gives about about 2% more in weekly withholding to the government, even though the IRS said last year that most Americans would see less taken off the top. Many are scratching their heads. The Bellwether's friends and colleagues are noticing amounts from $5 to $35 -- and everything in between -- missing on 2010 paydays. Tabular matter on the paychecks shows the money has gone to the IRS, making the takehome net less not more.

What's up? The Internal Revenue Service adopted new tax tables last year that imposed minimal increases in federal withholding in 2010. Payroll and human resources offices imposed the change on Jan. 1. But a lot of people who receive salaries for wages never got the word. Aaron Johnson at Automatic Payroll Systems Inc. noted last week that "employee take home pay will decrease . . ."

Johnson created a chart showing how much the withholding increase is by percentage in some wage brackets for single and married taxpayers:

• Salary and % Withholding Increase
  $18,000 annual 7% single, 100% married.
  $22,000 annual 5% single, 33% married.
  $26,000 annual 4% single, 18% married.
  $30,000 annual 3% single, 12% married.
  $40,000 annual 2.5% single, 6% married.
  $50,000 annual 1.7% maried, 4% single.

Ohio Consumer Counsel: $5 Phone Bill Fee Suspended

COLUMBUS (TDB) -- A $5 fee AT&T started charging Ohioans last week for printed copies of past long-distance telephone bills has been suspended by state utility regulators after a challenge by the Office of Consumers' Counsel.

Earlier this week, the utility customers' advocate asked that the fee be put on ice because it was introduced when Ohioans were gathering old bills to learn how much they could collect in a one-time take break from the IRS.

''The suspension of this charge will at least temporarily remove an obstacle for those customers who want to receive printed copies of their past bills in order to calculate the one-time federal refunds. Going forward, if any fees are imposed for copies of past long-distance bills, the charges should be justified by the company," said Janine Migden-Ostrander, the consumers' counsel.

The IRS is offering standard refunds ranging from $30 to $60 this year. However, a taxpayers might be eligible for more if they calculate how much was paid for federal long-distance excise taxes. Courts ruled that the taxes were collected illegally.

Migden-Ostrander's office released these DETAILS about the Public Utilities Commission of Ohio's decision to halt the AT&T fee.

Ohio's Consumer Counsel: New AT and T Fee Smells Fishy

COLUMBUS (TDB) -- The state's consumer watchdog over utility companies says telephone giant AT&T could gouging its Ohio customers with a new fee. The phone company has begun charging $5 for copying old long-distance bills, which many Americans are gathering this winter for a one-time federal tax break.

Consumer Counsel Janine Migden-Ostrander said the fee should be suspended until AT&T proves the price is "fair and reasonable." She noted that it started January 22, when Ohioans began looking for phone records for the tax refund.

"No telephone company should be allowed to impose charges for copies of past bills without justifying the amount," Migden-Ostrander said, pointing out that copying fees might exceed the amount the IRS is offering for long-distance excise tax refunds.

She has issued a press release that outlines her concerns about a potential unfair practice. The IRS says about 160 million Americans are eligible for long-distance excise tax refunds this year. "Taxpayers have a choice: A standard refund amount between $30 and $60, based on the total number of exemptions claimed on their 2006 tax return, to eliminate the need to locate old phone bills: or they can locate those bills and use the actual amount," the IRS says.

There is quite a bit of information about the refund, and how to get it, HERE. The phone company's 2007 press releases are online. But there doesn't appear to be anything about the new $5 copying fee.