Work Pay Tax Credit

Are you eligible for the Making Work Pay Tax Credit in 2010?  it would depend on several factors like: What s your filing status?  How much you earned in 2010? Are you a dependent of someone else? These are some of the relevant questions .

  

Practical information to know about this tax credit:

• 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.
• Most workers received the benefit of the Making Work Pay Credit through larger paychecks, reflecting reduced federal income tax withholding during 2010.
• 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.
• 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.

You cannot take the credit if:

1. 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,
2. you do not have a valid social security number or
3. you are a nonresident alien.

Source IRS


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