Since the Making Work Pay credit does not apply to non-resident aliens, should the previous percentage method tables continue to be used?
A. The old tables are to be replaced by the applicable new tables for all purposes. There are new higher amounts to be added to the pay of nonresident aliens to figure their income tax withholding. See IRS Publication 15-T for more information. Q2. Since an equivalent to the Making Work Pay credit applies to residents of American Samoa, Guam, Northern Mariana and the U.S. Virgin Islands, should the new tables be used for these territories? A. The territories with tax codes that “mirror” the Internal Revenue Code (United States Virgin Islands, Guam and the Commonwealth of the Northern Mariana Islands) will use the new withholding tables. For “non-mirror” possessions (Puerto Rico and American Samoa), payment will be made by the territories in a manner consistent with a plan approved by the Secretary of the Treasury. U.S. territory residents in those jurisdictions should contact their local tax agency for questions or concerns regarding implementation of the American Recovery and Reinvest
