The Inside Job

Making Work Pay Tax Credit: What You Need to Know

By Liz Wolgemuth

Posted: March 31, 2009

Starting in April, workers will be getting small additions to their paychecks, thanks to the stimulus package "Making Work Pay" tax credit. The fatter paychecks will continue through 2010--totalling up to $400 a year for working individuals, and $800 a year for married joint filers.

Here are a few things to know:

Look out if you have two jobs: If both of your employers pay you the full tax credit, you may owe money when tax season rolls around next year. To avoid the situation, make sure your employer is witholding the proper amount. (In fact, the IRS says there's a good chance you're not withholding enough if you have multiple jobs; a working spouse; income that isn't subject to withholding, such as capital gains or rental income; or you owe other taxes like self-employment tax.)

Rich folks won't get much: The tax credit is smaller for those earning $75,000 and above (or $150,000 as a married couple filing jointly) and its zero for those earning more than $95,000 (or $190,000 for couples filing jointly).

This isn't for retirees: If you received social security payments or pension benefits, then you'll get a $250 payment this spring, not the yearlong tax credit.

 

 

Agreed.

$400 will do nothing for me.

I am low income.

$13 extra dollars on my paycheck is ridiculous.

I'd prefer to NOT have it, then to be subjected to it.

I feel like I'm given a charity- but charity that does not help.

Sure $25 bucks a month is going to pay for my WoW or some pot.

But wouldn't it have helped the economy more to have a lump check? You know, people buying things that matter, like groceries and electronics, or shopping at malls and markets?

If Obama really wanted to make a REAL change, he'd increase the federal minimum wage by one or two dollars ($1-2) so people could have a liveable wage. $400 as a lump sum helps, but $13 bucks a paycheck is laughable at best and will only get wasted.

-Rick

PS: ALL lobbyists should perish. They are the scum of our system.

Rick of TX @ Jun 03, 2009 18:58:40 PM

Congress

Biff and Buffy America have sat by and let government get out of hand. They have civilized themselves out of civility. The only fix is to regain control of government- our founding fathers never imagined career politicians.

Term limits can and must be imposed on our congress people. We begin this process by voting out every incumbant- without regard to party. Within a relatively short period in history, we have replaced the 535 self-serving with folks who know that they can (and will be) replaced.

We must drive all lobbyists from the halls of Congress.

Remember that it is not enough for any political figure to publically "take full responsibility" for an illegal action- the offender must also accept (and bear) the full consequences

of the offense, rehab not an option.

Bif, Buffy, get an effen grip- our elected president screwing a woman with a cigar in our White House and lying to a federal grand jury is not (nor has ever been) acceptable.

USA

Mike Gallimore of TX @ Apr 03, 2009 11:34:54 AM

TAX CREDIT

I don't remember asking for it, I don't want it and they can just as well shove it. It is a crime that is being perpetrated on all Americans, the mob rule class envy is just another trick to get people mad at each other..like race baiting. where is the mob anger at the whole of congress taking pay increases? Why don't they have health care give backs? Where are the government cutbacks? Wake up stupid Americans and stop this. Demand your Senators and Congressmen take a pay cut after all AIG was caused by their inefficiency, where is the outrage over passing a bill they did not read? Most of us would be terminated for signing a contract like that at work. Get the Government out of our lives. Demand they stop the flow of illegals into the country our children are suffering from it. If you don't thinks so look at things like schools cutting athletic programs. Our tax based social services and school systems are overrun with costs that can be tied directly to the amount of money used to pay for the children of "undocumented workers"(illegals), what about our children? What bout their future? Government over the people and against the people is not what is in the constitution, but that is what you are seeing from Obama. Impeach him now! God help us if he can't give a speech without a teleprompter. The media portrayed Bush as an idiot when speaking in public, at least he didn't need to wear a diaper when doing it. Support your local Boston Tea Party.

SAVE AMERICA of VT @ Apr 02, 2009 11:51:05 AM

Add Your Thoughts
About You

advertisement

The Inside Job

The Inside Job

You're taking a break from your job-hunting and job-hopping ways and have decided to stay put in your current position. Liz Wolgemuth’s careers blog will show you how to make the very best of your job, each day.

advertisement

advertisement

Subscribe

U.S. News Digital Weekly

A weekly insider's guide to politics and policy — in a multimedia, digital format. 52 issues for $19.95!

U.S. News & World Report

6 months of U.S. News & World Report's print edition for only $15. Save up to 67% off the cover price!