Workers to see about $40 increase in monthly paycheckPosted: Updated:
PHOENIX - So your 401K may not be looking good, but your bank account soon could be.
You may remember President Obama promised another round of stimulus payments for Americans. Although this time, the check will not be in the mail. Instead, it will be in your paycheck.
The Internal Revenue Service has released some information about this second stimulus and essentially, most Americans will see about a $40 increase in their monthly take home pay.
The IRS is reducing the amount of federal taxes withheld in your paycheck. For the average worker, that will come out to about $13 dollars a week this year and about $8 next year. That will continue until your personal stimulus payout totals $400 or $800 for couples.
Nevertheless, the more you make, the less you will get. Taxpayers who make more than $75,000 alone or $150,000 as a couple will get a reduced benefit.
Taxpayers who are making more than $95,000 alone or $190,000 as a couple will get no benefit.
Last time, some critics said the lump sum payout was ineffective. Maybe just a little extra every month will encourage spending.
Depending on your company, some folks could see the extra dollars as early as next month, others not until April.