Thursday, April 23, 2009

The "Making Work Pay" Tax Credit

I noticed the change on my last paycheck-- my Federal tax withholding had decreased by about $22. (I'm paid twice a month.) I wasn't sure if I'd qualify for this tax credit (see my post about the stimulus payment last year) so this was pleasant news.

If you want more information about this tax credit, here's an article at Kiplinger's which arrived in my mailbox just in time to remind me what the name of the program actually was! Is it just me, or does it seem like this has been kind of under-played in the news?

10 comments:

Adrienne said...

The tax credit is a joke. Give me back my lump sum!

savvy said...

You will see a change in your pay regardless of whether or not you actually qualify for the credit. IIRC, the credit begins to phase out at $75K AGI for single people. If you check IRS Pub 919, there's a worksheet that will calculate if you're eligible for the credit.

Isaacswife said...

Your right, even in suburban/country Ohio there was little excitement.
I was glad though! Every $ counts esp when it helps pay off the mortgage that bit earlier.

rcvjr said...

A few extra dollars, unless you are VERY calculating, tends to get swallowed up in the big picture. I would much rather get one lump sum which allows me to make a decent size purchase.... or make a significant dent in a debt.

Anonymous said...

The first stimulus check was based on your 2007 tax return - which included all your income. This stimulus is based on your paycheck income (e.g., not counting bonuses, etc.). Therefore you may be getting more money than you would have expected.

Mike said...

Yup - It appears you are right on the fringe, depending on how many deductions you have Bostongal. If you don't qualify for the credit, there will be a calculation on your 2009 tax return to essentially pay back the few hundred bucks (by either decreasing your refund or increasing your taxes owed). This is what is also happening to people who work 2 jobs -- since they can only claim this "credit" once, they will have to repay next tax season.

Mike said...

Wow, I'm totally sorry.. I forgot which blog I was reading, LOL. Umm, I am pretty sure your AGI's over $75k (you make a little more than Bostongal right?)

Needs Help said...

Thanks for the articles. I've seen no change in my paycheck :(

Anonymous said...

Shocked to know you qualify for the makign work pay credit.

Anonymous said...

Like Mike, I also beleived I was reading another blog and responded thinking Johnathan.

BTW - Love Carmines.