Is Janice eligible for the making work pay credit on her tax return?

Answer 1

This may be possible but until the income tax return is completed correctly you will not know the correct amount of any of the MWPC amount. The MWPC may have already been received in the pay check during the past year 2009 and if it was you would not receive any additional amount when the income tax is completely correctly using the schedule L of the 1040 tax form and it is also possible that by receiving the larger pay checks during the year 2009 you could end up with a smaller amount of income tax refund or even have a federal income tax liability because of the advanced payment for the MWPC.

Go to www.irs.gov and use the search box for Making Work Pay Tax Credit

How will the Making Work Pay taxcredit affect you?

http://www.irs.gov/newsroom/article/0,,id=204447,00.html- 17.6KB

Also use the search box for PUBLICATION 967

http://www.irs.gov/pub/irs-pdf/p967.pdf

Introduction

You can have the IRS figure your tax on Form 1040EZ, Form 1040A, or Form 1040 if you file your return by April 15, 2010. If you paid too much, we will send you a refund. If you

did not pay enough, we will send you a bill for the balance. To avoid interest or the penalty for late payment, you must pay the bill within 30 days of the date of

the bill or by the due date for your return, whichever is later. The IRS will also figure the credit for the elderly or the disabled, the earned income credit, and the making work pay credit.

The IRS cannot figure your tax if any of the following apply.