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If you paid close attention to your paychecks in 2009, you may have noticed a small increase. That was part of the Making Work Pay tax credit, a new addition to the tax code from the 2009 Recovery and Reinvestment Act, which added up to about $400 per individual and $800 for married couples filing jointly.
When you do your taxes this year (2010) fill out the form Schedule M to make sure you received the total credit. Keep in mind that you could owe the government some money if you had too little tax collected or you were ineligible for the tax credit.
Who is ineligible?Individuals with a modified adjusted income above $95,000 (phase out begins at $75,000)
Couples filing jointly with a modified adjusted income above $190,000 (phase out begins at $150,000).
See related links for more information from the IRS.
More input from WikiAnswers contributors:
- If you are rich or run a large business then you pay into the credit through the payroll taxes. Typically those who are eligible and reap the most benefit to collect the MWPTC are low income workers who fall under the poverty line. Why? If you make 16K a year, and have one child, under the previous tax plans and credits you would pay roughly $33.00 to the federal government. Mind you that's on top of the 2.2K they are keeping.
- About 10 million Americans will be helped throught MWPTC. With a little extra money those Americans will be able to improve their lives and the lives of their children. Part of our problem with economy is the top 5% get richer but the middle class is getting poorer and it is destroying our economy.
- I'd say one major problem with the economy is the continuation and growth of the unfairness that as of 2006 (last year #s avail): The top 5% of income pay a full 60% of all Taxes. Bottom 50% of income pay 3% of all taxes, and in fact a full 32% pay no tax at all! Certainly makes for a strong argument that a major problem is too many people, especially those relying on society the most, don't contribute their fair share, while seeming to think its OK to burden others with doing so for them. Disgraceful...
- it makes sense to me that those with greater resources, who benefit the most from the current economic system, should pay their dues to society. The argument above appears to assume that those who are in the bottom half of incomes in this country willfully stay there to free-ride on the system, which is offensively untrue. I'm sure anyone who makes less than the median income would be thrilled to be in a position where they made enough money to owe taxes. I know I would be.
What else can I help you with?
What is a schedule M on a 1040A tax return?
This schedule was for 2009 only and it was to figure the 'Making Work Pay and Government Retiree Credits.' Everyone who is not someone else's dependent (most adults not being taken care of by mom or dad) and who works gets the 'Making Work Pay' credit and will want to fill out this schedule. It's up to $400 ($800 if you're married and file a return with your spouse). Those who receive social security benefits, railroad retirement benefits, or VA disability probably received a $250 check last summer and it will reduce any Making Work Pay credit they are allowed. Those who are getting retirement for a government job and aren't allowed to claim social security get a $250 credit. Those who qualify for this & the making work pay credit won't get a total credit of more than $400 ($800 if married & filing a joint return with their spouse).
Is credit card a cash transaction?
Purchase with a credit card is not considered a cash transaction, as the person making the purchase does not pay for the item until they pay their credit card bill, which may not occur until much later.
Is it possible to get a tax refund larger than the amount withheld?
For 2010, there is a "making work pay" tax credit of up to $400. If you made below the threshold to pay taxes (around 16000 for single), then you would get all you paid in back, plus some or all of the $400 tax credit. In some instances, employers were able to not withhold the amount for the tax credit (giving you extra in your check) so that you don't get the tax credit. That is apparently a fairly rare situation, however. The $400 tax credit maxes out at $400, and is reduced based on income, beginning around $60000 if filing single, going to zero once over $75000. Sorry I don't have the exact numbers, but they are in most of the worksheets. Search the IRS web site for "making work pay" and it will provide exact details.
If a credit card was charged off 5 years ago and has since been sold to 4 collection agencies and each has reported it as bad debt do all 5 reports affect your credit or is it seen as one trade line?
All 5 reports affect your credit. Companies look at the number of negative reports on a persons credit. The number of reports will affect your credit score. Companies do this in order to: a) Get their money b) basically persuade you to pay the balance.
What is this Fresno tax refund check we just received?
The Fresno tax refund check you received is most likely for the Making Work Pay Credit. However, you can contact your local IRS office to find out more information about the check.
can i claim a making work pay credit ?
can i claim a making work pay credit can i claim a making work pay credit
When will taxpayers receive the making work pay tax credit in 2011?
there is none -- it ended in 2010
How do you raise your credit score when it has been lowered due to credit inquiries?
Pay your bills. I don't know that a credit inquiry will lower your credit score. What does affect your credit score is not paying. Even if you pay late, it shows willingness to pay. But as far as someone checking your credit, I don't think that will actually affect your credit score. Pay your bills. I don't know that a credit inquiry will lower your credit score. What does affect your credit score is not paying. Even if you pay late, it shows willingness to pay. But as far as someone checking your credit, I don't think that will actually affect your credit score.
Can you claim the Making work pay tax credit again for 2010?
The current rule is in 2009 and 2010, the Making Work Pay provision provides a refundable tax credit of up to $400 for individuals and up to $800 for married taxpayers filing joint returns.
How does working with Care One Credit affect your credit score?
If you work with Care One Credit, it will positively effect your credit score. This will show you can pay your debts and you won't have any black marks.
When making a credit card purchase at a store, to whom do you agree to pay?
When making a credit card purchase at a store, you agree to pay the credit card company that issued the card.
How does a short sale affect your credit score?
A short sale can negatively impact your credit score because it indicates that you were unable to pay off your mortgage in full. This can result in a drop in your credit score, making it harder to obtain credit in the future.
How does a short sale affect your credit?
A short sale can negatively impact your credit score because it shows that you were unable to pay off your mortgage in full. This can result in a drop in your credit score, making it harder to qualify for loans or credit in the future.
If you close a credit card will it hurt your credit?
It will not affect your credit if you pay off the balance when you close the account.
If you default on your pay day loan will that affect your credit?
Yes, if you default on any loan it will affect your credit rating negatively.
How does it affect your credit if you pay a personal loan off early?
It doesn't hurt your credit to pay off a loan early.
How does a short sale affect credit?
A short sale can negatively impact a person's credit score because it indicates that they were unable to pay off their mortgage in full. This can result in a drop in credit score, making it harder to qualify for loans or credit in the future.
