Whoever said, "Never look a gift horse in the mouth" never met Congress.  

Thanks to the latest stupidity from Congress, 15 million taxpayers will have to repay between $250-$400 of the tax credit they received as part of this year's stimulus package. 

Remember Obama's signature promise of a tax cut for 95% of working Americans? Well, part of the $800 billion stimulus bill the Administration pushed down our throats was the centerpiece $400 tax credit for workers that kicked in last April. In an effort to put more money in taxpayer's pockets (in hopes you'd spend it and boost the economy), the amount of taxes withheld from weekly paychecks was lowered.

Now, you may end up wishing you hadn't spent that money.

You see, Congress, in its rush to sign this "gift" into law, failed to dot I's and cross T's. So today we learn from an inspector general report that due to a "quirk" in the tax law, as many as 15.4 million Americans may have to pay the money back next April either through a reduced refund or by actually writing a check if no refund is due!

This "quirk" could cost $400 for individuals and $800 for working couples. Just what you wanted to hear, right?

We're warning you now BEFORE you head out to do some holiday shopping. Don't spend what you may not have.

Here's who might discover a nasty surprise come April:

--WORKERS WITH TWO JOBS - Although you would receive the reduced withholding on both jobs, giving you an extra $800, you're only eligible for $400. The other $400 will have to be returned.

--MARRIED WORKING COUPLES - The adjustment made by the IRS for couples who both work was done incorrectly. The withholding tables were written incorrectly showing a $600 return to each person instead of $400. So $400 will have to be returned.

--RETIREES - More than 50 million recipients of Social Security were sent $250 checks last spring as a sop to people who didn't qualify for the workers' tax credit. Unfortunately, it was also sent to recipients who are still working. Since they have received the $400 tax credit through decreased withholding they will have to return the $250.

What to do?

We urge you to visit www.irs.gov as soon as possible and use the calculator there to find out the true amount that should be withheld from your pay. If you are part of the 10% of taxpayers who will be hit with this April surprise, immediately go to your employer and get a new W-4 form to change your withholding now. There are still enough weeks in the year to mitigate any damage by having more taxes withheld from each paycheck now through the end of the year.

A big fat "gotcha" moment thanks to Uncle Sam because Congress rushed through this legislation.

Is it any wonder why we're scared to death with the rush to legislate healthcare reform?

Read More In: Taxes