BY JONATHAN CANNON

HERALD DEMOCRAT

It's tax season. For your accountant, it's like Christmas, but for most Americans it's like, well, doing your taxes.

The tax code is gloriously confusing and increasingly complicated as it has changed, and taxpayers find themselves in situations that raise new questions.

This year, since the withholding tables were changed to include the Making Work Pay tax credit last year, some taxpayers may be surprised when they file their return this year.

Andre & Associates tax manager Melissa Simmons said that while this meant more money in many workers' pay checks, it may also mean a smaller return. Some may even be surprised to find they owe taxes instead of getting their usual refund.

Simmons said since employers included the credit in paychecks by lowering withholdings, anyone with a second job or two-income couples likely received a greater credit than the allotted $400 for individuals, $800 for married couples.

Taxpayers who received Social Security, Veteran Affairs disability payments or Railroad Retirement may find themselves in a more complicated tax situation because of the credit, as well. Simmons said, because they received a $250 stimulus payment that is required to be deducted from the credit, they, too, may owe. She recommended that anyone who receives those benefits contact the entities and verify that they received the stimulus refund.

Beyond that, there is little workers can do to remedy underpayment of last year's taxes. However, individuals who underpaid because of the change in withholding tables can file a Form 2210 to request a penalty waiver. In addition, all filers must complete a Schedule M form to accompany their 1040 or complete the MWP worksheet attached to their 1040EZ.

Simmons said, for next year, so far at least, there will be no stimulus payments to complicate the returns of SS, VA and Railroad Retirement beneficiaries. However, those with a second job should check their withholdings to avoid owing taxes in 2011. Simmons recommended using the W-4 worksheet to calculate withholdings. A withholdings calculator is also available at www.irs.gov.

Earned Income Tax Credit

While the Earned Income Tax Credit has been available to employed, low-wage earners since 1975, the Internal Revenue Service estimates that one in four people who qualify for the credit don't claim it.

"America's working families are struggling to make ends meet and they deserve relief -- especially during tax season," said President Barack Obama in a statement on EITC Awareness Day in January. "The Earned Income Tax Credit gives millions of working families the break they need, and thanks to the Recovery Act, more Americans will qualify for an even larger credit than ever before. The Recovery Act expanded the Earned Income Tax Credit for larger families struggling to get by and cut the marriage penalty that millions of families face."

The credit is based on earned income and the number of qualifying children. However, filers can claim the credit with no children if they earned no more than $13,440 -- $18,440 for married couples.

According to the IRS Web site, the 25 percent of taxpayers who don't claim the credit are likely unaware they qualify for it because they don't seek professional tax assistance. However, help is available to low- to moderate-income filers through the IRS Volunteer Income Tax Assistance and the Tax Counseling for the Elderly programs. To find a local assistance site, call 1-800-829-1040.

The AARP is also offering free assistance to local residents at the Sherman Public Library, 1-4 p.m. Thursdays and Fridays; Denison Public Library, 9 a.m.-4 p.m. Tuesdays; Bonham Public Library, 10 a.m.-2 p.m. March 10 and 24 and April 7; and Durant Senior Citizens Center 12:30-4 p.m. Tuesdays and Thursdays.