Payroll Tax Credit Killer Professional Advice
Payroll Tax Credit – Qualifications And Eligibility
Beginning with April 2009, working individuals and working families may receive the benefits of a new payroll tax credit of up to $400 for single wage earners and $800 for qualified married taxpayers.You may be eligible for a refundable payroll tax credit equal to 6.2% of your earned income, if your adjusted gross income is less than $75,000 for a single filer. If you file a joint return, your adjusted gross income phases out at $150,000.Your employer will calculate in advance, your income tax withholding and add extra money to your paycheck. This payroll tax credit can offset you tax liability, too.For 2009 and 2010, retired federal employees or individuals who do not have an earned income may receive a reduced credit of $250. 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).