Earlier this year, the IRS changed the withholding tables to accommodate the Make Work Pay Credit. This was designed to put more money in people's pockets by increasing tax-home pay by reducing federal income tax withholding in paychecks. However, some taxpayers may have a tax issue when they file their tax returns in 2010. Because of this credit, some taxpayers may even have to pay a penalty since this credit may result in under-withholding of taxes.
This is certainly an example of the law of unintended consequences.
