Making Work Pay Tax Credit Killer Professional Advice
Making Work Pay Tax Credit Eligibility
Working individuals and working families may be able to receive the benefits of this tax credit, if their adjusted gross income is $75,000 or less (not more than $150,000 for a filing joint). For example, if your AGI is $80,000, the credit you are eligible for, after phase out, is $300.Making Work Pay Tax Credit is a refundable credit of up to $400 for a single wage earner and $800 for married qualified taxpayers.
Making Work Pay Tax Credit Calculation
This credit is calculated at a rate of 6,2 percent of earned income. If you are subject to withholding from your paycheck, your employer can determine the amount of credit, through automated withholding changes. You can claim this tax credit on your tax return.
Who Qualifies For A Reduced Credit Of $250?
There is a reduced credit of $250 for retired federal employees or individuals who do not have an earned income. However, they get the Social Security benefits.Those who receive veteran disability or railroad retirement compensation benefits can also qualify for the $250 credit (if married and both persons are eligible, the credit offered is $500).This credit applies to pensioners and is available in both 2009 and 2010.