"Making Work Pay" Tax Credit

Making Work Pay and Earned Income are two separate credits for the taxpayers. I believe the Making Work Pay Credit was part of the Stimulus package in 2009. If you had earned income, you should also have been given this credit for year 2009.

You get 400 dollars if you are single with income of 75 thousand or less. It's 800 dollars on joint returns with income under 150,000. If you earn above the income threshold, you still qualify but in lesser amounts.

Earned Income Credit are for those who work and have very low income. You can still qualify even if you did not have any tax liability.

Am not an accountant, but I do simple returns for the family. I believe the above information is correct, I hope.

I did get that credit for 2009, also, Johnny. And I believe it's just for senior citizens who work, as indicated in the link I posted above. You're correct that it's not the same as the "earned income credit."

Sue, thanks for the link. Based on the link, it appears to be an offset for those paying Social Security taxes.

My son received it last year. I used the 1040A form last year because of deductions allowed on purchasing a new car. Am using a 1040EZ for him this year. It is easier since instructions are on the back of the form.

OK, that's where I got confused. I thought it was for people who both receive SS and are paying SS tax. But apparently not? They also lowered the percentage that's deducted for SS tax this year.

Johnny: your explanation was correct. It's for anyone who paid SS taxes in 2009 and 2010, up to a certain limit. And yes, Sue, the SS rate went from 6.2% to 4.2% in 2011. Enjoy it now because I doubt it will remain that way in 2012. I know the intent was to stimulate spending, but I'm putting mine in my 401(K).

fredo

When it comes to IRS rules everyone is confused

It could get worse. Since PRIVATE health insurance benefits have tax advantages for employers, under the proposed Republican abortion law, audits could include questions such as "have you had an abortion," and "was it due to rape or incest."

Ain't small government conservatives wonderful?

Yes, they are. Thanks for noticiing.

Making Work Pay has nothing to do at all with SS benefits. it's for anyone with EARNED income. If you were just bringing in the SS, and not working too, you would not be eligible.


Unfortunately, I got the full $400 credit this year. In 2009, I made too much. this economy sucks