COLUMBUS, Ga (WRBL)- The 2020 Tax Holiday is in full affect, but there are still some unanswered questions when it comes to working Americans.
In response to congressional leadership squaring off about the status of the next stimulus check President Trump issued an executive order granting working Americans a payroll tax holiday, where he says this will put you bringing home more money for the next four months. According to Steve Brown, a local tax expert many taxpayers still have questions on how exactly will this process work.
“The tax holiday is a deferral, social security tax is 6.2% of the gross payroll. In many cases particularly government workers, they are not going to take out the 6.2% Sept., Oct., Nov., and Dec., but it is a deferral and not a tax cut.
That means if you are bringing home more money during the Tax Holiday period it will not affect you for the 2021 tax season. However according to Brown you will have to pay the money back, which will be handled by your employer, and they will cut your check for the first four months of 2021.
“Okay people need to be aware yes you can have the money taking out of your check, but you are going to pay it back after the first of the year. It is no option on paying it back, the employer has to start taking the payment back starting Jan. 1,” said Brown
Brown tells News 3 that it is important to check with your employer to determine if you will opt in or out for the tax holiday.