The Making Work Pay Tax Credit

As part of the American Recovery and Reinvestment Act if 2009 there is something called The Making Work Pay Tax Credit.  This tax credit is a refundable tax credit which is 6.2% of your earned income up to $400 for a working individual or $800 for a married couple filing a joint tax return.  If you make over $75,000 as an individual or $150,000 for your modified gross income you will have this tax credit phased out.  Your employer will usually handle this by changing your automatic withholding in spring of 2009.  This will provide taxpayers with increased take home pay stimulating the economy.  If you do not have taxes withheld by an employer you can claim The Making Work Pay Tax Credit on your 2009 tax return.