The Making Work Pay Tax Credit

The Making Work Pay Tax Credit is a work tax credit available to workers in 2009 and 2010. It is a tax credit that can be taken throughout the year, rather than at the end of the year , when the returns are file and refunds are issued.

Salary Workers

With this tax credit, employers began automatically adjusting withholding amounts in the Spring of 2009, so that individuals can receive $400 extra in their take home pay over the course of the year. Couples will receive an extra $800 of their take home pay over the course of the year. This credit is part of the stimulus plan designed to help the economy rebound.

Self-Employed and Retired Workers

For those who are self employed, adjustments can be made to quarterly estimated tax payments, or the credit can be filed at the end of the year. This credit will not be available for those who do not have a social security number. Anyone who is retired will receive a $250 check in the Spring, so as to make sure they have access to this credit too, even though they are not working.

Multiple Jobs

Anyone who works two jobs may find themselves owing at the end of the year, because the adjustments to withholding will be made from both jobs. Make sure the adjustments are made only with one employer to avoid the hassle.