Tax law changes costing seniors more in federal taxes - WALB.com, South Georgia News, Weather, Sports

Tax law changes costing seniors more in federal taxes

By Jennifer Emert - bio | email

ALBANY, GA (WALB) –  Changing tax laws have many retirees seeing red.

One change is forcing them to pay more federal income tax. While workers are getting more money in their checks as a result of a cut in their social security taxes, the changes are taking money away from retirees. Many of them didn't know the change was coming.

Some got a letter informing them of the change, others did not, they just got a smaller check. Many companies had until yesterday to make the changes which is why pension checks for retirees are short starting February 1, 2011.

Many retirees at the SOWEGA Council on Aging Senior Center downtown are on a fixed income. Their only source of income social security or a pension and it didn't talk long for many to notice that pension check is suddenly smaller.

"It causes ulcers, it causes all different kinds of sickness, because of worrying that we shouldn't ought to have," said Bobby Jenkins, former WG&L employee.

"I was very shocked and very upset," said Colleen Chappell, retired Dougherty County School employee.

That's because their cost for necessities isn't shrinking.

"Groceries are up, gas is up, everything you need is up, and then they cut our pay, just because they can I guess," said Chappell.

If you're lucky you received a letter with your check explaining it's the change with the Making Work Pay Tax Credit that caused the problems, the tax credit expired in December.

"That credit expired and in place of that with the 2010 relief act, a payroll tax cut has been put in place," said Miles Espy Sr, CPA with Draffin & Tucker, LLP.

That gives those who are still working a two percent cut on their Social Security withholdings, but for those without a job, and without the tax credit it means an increase in the amount of federal income taxes. While other tax cuts were extended.

"One of those being the deduction that teachers are allowed for educational expenses. There's the $1,000 dollar child credit there's also the child care tax credit," said Espy.

Many seniors feel they've been forgotten in the recent tax cuts.

"We've paid taxes all of our lives and then when they cut our pensions it hurts, it hurts," said Christine Jenkins, Bobby's wife.

A hurt they're likely to feel every time they get their check.

The letter also warns those with pension payments to review their state income tax withholding as well because the reduction in federal income tax withholding may also impact state figures.

You can consult with a tax preparer or find more information on the IRS web site at www.irs.gov.


©2011 WALB News. All rights reserved.   Feedback

  • More WALB News10 HeadlinesMore News HeadlinesMore>>

  • Coffee Co. Middle School student raises money for school employee

    Coffee Co. Middle School student raises money for school employee

    Monday, May 21 2018 10:31 PM EDT2018-05-22 02:31:09 GMT
    Caroline Maley. (Source: WALB)Caroline Maley. (Source: WALB)

    It's the small acts of kindness that leave a mark on many peoples lives.  Monday, a young girl from Coffee County Middle School did some reaching out to people in her community, to help out an employee at her school, and got more than what she expected. 

    More >>

    It's the small acts of kindness that leave a mark on many peoples lives.  Monday, a young girl from Coffee County Middle School did some reaching out to people in her community, to help out an employee at her school, and got more than what she expected.  

    More >>
  • Lt. Governor Casey Cagle made a pit stop in Albany ahead of elections

    Lt. Governor Casey Cagle made a pit stop in Albany ahead of elections

    Monday, May 21 2018 10:28 PM EDT2018-05-22 02:28:00 GMT
    Lt. Governor Casey Cagle held a mini press conference ahead of Tuesday's election. (Source:: WALB)Lt. Governor Casey Cagle held a mini press conference ahead of Tuesday's election. (Source:: WALB)
    Lt. Governor Casey Cagle held a mini press conference ahead of Tuesday's election. (Source:: WALB)Lt. Governor Casey Cagle held a mini press conference ahead of Tuesday's election. (Source:: WALB)

    Lieutenant Governor Casey Cagle made a brief stop in Albany Monday, ahead of Tuesday's elections. 

    More >>

    Lieutenant Governor Casey Cagle made a brief stop in Albany Monday, ahead of Tuesday's elections. 

    More >>
  • Former DA campaigns for Court of Appeals seat in South GA

    Former DA campaigns for Court of Appeals seat in South GA

    Monday, May 21 2018 7:46 PM EDT2018-05-21 23:46:20 GMT
    Ken Hodges held a press conference on Monday ahead of Tuesday's election. (Source: WALB)Ken Hodges held a press conference on Monday ahead of Tuesday's election. (Source: WALB)
    Ken Hodges held a press conference on Monday ahead of Tuesday's election. (Source: WALB)Ken Hodges held a press conference on Monday ahead of Tuesday's election. (Source: WALB)

    Former Dougherty District Attorney and Albany native Ken Hodges received the endorsement of a number of South Georgia law enforcement officials Monday. Hodges is running for the non partisan court of appeals seat in Tuesday's election.   

    More >>

    Former Dougherty District Attorney and Albany native Ken Hodges received the endorsement of a number of South Georgia law enforcement officials Monday. Hodges is running for the non partisan court of appeals seat in Tuesday's election.   

    More >>
Powered by Frankly