Making Work Pay Credit- Well Thank you Obama!

[happy_liberal]

I just got my tax refund with a huge bonus thanks to this tax credit I had no idea about. I didn't even file for it.

Thought I'd spread the word in case anyone else has this to look forward to...









Making Work Pay Credit

Most eligible taxpayers qualify for the maximum making work pay credit of $800 for a married couple filing a joint return or $400 for other taxpayers. The credit equals 6.2 percent of earned income up to the maximum amount. Thus, any eligible couple whose earned income is $12,903 or more qualifies for the $800 maximum credit. Other taxpayers qualify for the $400 maximum if their earned income is $6,451 or more.

For most workers, the credit is based on the taxable wages reported to them on Forms W-2. Self-employed individuals figure the credit using the net profit or loss they receive from a business or farm. Additional calculations are necessary for some taxpayers, including those who have net business losses, wages from work performed while a prison inmate or foreign earned income. More information, including a worksheet, can be found in the instructions for Schedule M.

Some taxpayers are not eligible for the making work pay credit, including:

* Joint filers whose modified adjusted gross income (MAGI) is $190,000 or more.
* Other taxpayers whose MAGI is $95,000 or more.
* Anyone who can be claimed as a dependent on someone else’s return.
* A taxpayer who doesn’t have a valid social security number.
* Joint filers, if neither spouse has a valid Social Security number.
* Nonresident aliens.

Other taxpayers qualify for the credit but must reduce the amount of the credit they claim, including:

* Joint filers whose MAGI is more than $150,000 but less than $190,000.
* Other taxpayers whose MAGI is more than $75,000 but less than $95,000.
* Taxpayers who received an economic recovery payment. This special $250 payment was made during 2009 to recipients of Social Security benefits, supplemental security income (SSI), railroad retirement benefits or veterans disability compensation or pension benefits.
* Taxpayers who claim the government retiree credit.

See Schedule M and its instructions for details.

Though all eligible taxpayers must file Schedule M to claim the making work pay credit, most workers got the benefit of this credit through larger paychecks, reflecting reduced federal income tax withholding during 2009.

Government Retiree Credit

This credit is designed to provide a benefit equivalent to the economic recovery payment to those government retirees who did not qualify for these payments. Retired federal, state or local government employees who receive pensions in 2009, based on work not covered by Social Security, are eligible to claim this credit. The credit is $250. For joint filers the credit is $500 if both spouses are retired government employees who receive pensions based on work not covered by Social Security. The credit cannot be claimed by an individual if he or she received an economic recovery payment during 2009. See Schedule M and its instructions for details.


http://www.irs.gov/newsroom/article/0,,id=217793,00.html

[SoCalDem]

1. Us too.. I even thought I had made a mistake when I saw that $800 pop up

I didn't even know about it.. but gladly accepted it:)

[happy_liberal]

3. me too

I thought they were going to ask for it back.

[WhiteTara]

9. but damn him! where's my

what ever? :sarcasm: for the "he's a one term" yakkers.
I know he's not all that, but I like him more every day.

[DJ13]

2. Heres a link to the instructions for Schedule M

http://www.irs.gov/pub/irs-pdf/i1040sm.pdf

Thanks!

[unblock]

4. yeah but everyone will remember shrub's $300 checks and no one will give obama credit for this one.

there are tons of idiots out there who actually think obama RAISED taxes!
they can't even believe their own tax returns!

[happy_liberal]

8. the Republicans are going to get this too

Maybe we should make some noise about it to shut them up!

[quiet.american]

5. Fab. nt

[sandyj999]

6. Thanks for the reminder!

When our refund was more than usual I thought I had messed up and made a mistake. Now I can breathe easier. Thank you Mr. President!

[bikesein]

7. Thank you!

I missed this on my form but as with others the IRS added it in. I really think they need to publicize this a little more. Or maybe it is time I started paying someone to do my taxes...

[Coyote_Bandit]

10. But if you were unemployed

for the 2009 tax year and yet had taxable non-work income there ain't nothin' for you.....

Think these folks are all just rich bastards living off their investments? Think again. This would include anybody who took an early taxable distribution from their retirement fund to meet expenses until they find work.

[yurbud]

11. I give Obama his props for this! Now I'm going to start working on my taxes...

[monmouth]

12. When will those on Social Security get their increase after two years.?

You know, the ones who pretty much need it the most? $250 doesn't really cut it..