The Making Work Pay Tax Credit

The ‘Making Work Pay’ Tax Credit came out of the American Recovery and Reinvestment Act (ARRA) of 2009. This provision allows working individuals to claim a tax credit of $400 and working married couples to claim a tax credit of $800. Note that if you are receiving special credit for certain government retirees, you will be obligated to subtract it from this amount. The same goes for any economic recovery payments you may be receiving from the federal government.

The Making Work Pay Tax Credit is limited and available for tax years 2009 and 2010 only. If you have been granted an automatic six-month tax extension from the IRS you have until October 17, 2011 to file your return. Don’t forget to check if you are eligible for the Making Work Pay Credit before submitting your federal income tax return!

‘ taxes.about.com/deductionscredits/making_work_pay

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