"Making Work Pay" Tax Credit

Is anyone familiar with the "Making Work Pay" tax credit of $400? I'm not sure what or who it's for, but for the 2nd year in a row, it's allowed me to collect a small "refund" from the IRS -- even though I didn't pay in anything last year! No payroll deductions, no estimated tax payments, nothing. Yet I'm getting $287 back.

Sue: the Making Work Pay tax credit was part of the Recovery Act that was passed to stimulate the economy. You didn't have to pay in anything or have anything deducted - you just had to work and fall under certain guidelines (it was phased out for higher wage earners, for example). Taxpayers who were eligible would receive the credit even if they owed no tax - it was simply added to their refund. Good for you that you got something back - hopefully you can invest that in some good vp and parlay that into an even higher "bonus"!


fredo

Thanks, Fredo.

I believe that it is $800 for a couple filing jointly, even if only one had income...

What is this strange tax credit you speak of?

You seem to be suggesting the Communist Muslim in the White House cut taxes - perhaps to the lowest Middle Class rates in recent history. That cant be true. Please dont insult our intelligence with such nonsense. We all know that Kenyan elitists dont believe in tax cuts.

It appears this credit is for seniors who collect Social Security retirement income and also work, if I'm reading this correctly. It's to offset the SS tax taken from our paychecks. https://taxpolicycenter.org/taxtopics/2011_work.cfm

I got the credit, and I'm not collecting SS.

I'm a bit muddy on it too, but I think it's basically for anyone who had earned income in the 2010 tax year (up to a certain phase-out point).

- Jeff

earned income credit has been a handout for non-earners most of my adult life. I dont mean to be harsh about it, but if it's not a handout, what is? SO, Thanks, government, for paying for my kids births, while i was broke. Redistribution of wealth has been a fact that most people just can't bear to face, IMHO. I got some of the stimulus, too, and i didn't know why. Good luck to all of us lucky citizens!

Sue,

My question is, how can you work part time or full time, and not have any payroll dedutions taken out of your check?

I filled out my W4 form at work to say NOT to deduct federal withholding taxes. I did the same with my small pension. That's perfectly legal. They still deduct "Federal FICA" and "Federal Medicare." I have no choice about those, lol.