U.S. Department of Commerce - Office of the Secretary U.S. Department of commerce seal


Home > News and Events

Changes in Federal Tax Withholding

On March 1, 2009, the formula for computing an individual’s Federal withholding for income taxes changed as a result of the American Recovery and Reinvestment Act of 2009. This change results in a decrease in the amount of Federal tax withheld and is effective for eligible employees who claim Single, Head of Household, or Married status for Federal withholding purposes.

Some taxpayers may see little or no change in the amount of Federal tax withheld because the change is phased out for a married couple filing a joint return with a modified adjusted gross income (AGI) in excess of $150,000 and $190,000, and is phased out for other taxpayers with a modified AGI between $75,000 and $95,000. The change will be reflected in employee’s salary payments for pay period 5 and is automatic; no action required by the employee or the human resources offices.

Contact your servicing human resources office for additional information or visit the Internal Revenue Service website at: http://www.irs.gov/newsroom/article/0,,id=204447,00.html