|Posted: January 19, 2014, 4:22 pm - IP Logged|
Retroactive Tax?!? That's crazy.
Can happen and is not against the law. When you think of the term retroactive, you think past years rates being changed. In reality, the law was passed July 1, 2009 for the 2009 fiscal year. Technically, no different from last year, when Congress passed the 39.6% upper bracket tax, 5% raising in the capital gains, and the ending of payroll tax cut at 2:00 a.m. on January 1st. Would you complain then (assuming you were neutral on the raises) that they retroactively did that?
You have to go with the assumption all the time that you might owe more than withheld at the end of the year. You don't pay taxes until Jan 1st at the earliest of next year anyways