Here are five things the IRS wants you to know about this tax credit to ensure
you receive the entire amount for which you are eligible.
1.
The Making Work Pay Credit
provides a refundable tax credit of up to $400 for individuals and up to $800
for married taxpayers filing joint returns.
2.
Most workers received the
benefit of the Making Work Pay Credit through larger paychecks, reflecting
reduced federal income tax withholding during 2010.
3.
Taxpayers who file Form
1040 or 1040A will use Schedule M to figure the Making Work Pay Tax Credit.
Completing Schedule M will help taxpayers determine whether they have already
received the full credit in their paycheck or are due more money as a result of
the credit.
4.
Taxpayers who file Form
1040-EZ should use the worksheet for Line 8 on the back of the 1040-EZ to figure
their Making Work Pay Credit.
5.
You cannot take the credit
if your modified adjusted gross income is $95,000 for individuals or $190,000 if
married filing jointly or more, you can be claimed as a dependent on someone
else return, you do not have a valid social security number or you are a
nonresident alien.
Visit
http://www.irs.gov/recovery for more information about the Making Work Pay
Credit.
Links:
-
The American Recovery and Reinvestment Act of 2009:
Information Center
-
Publication 919, How Do I Adjust My Withholding?
