There have been few changes in the Making Work Pay Credit since last year (look for my post later today summarizing what you need to know). Those changes are, however, enough to throw taxpayers, so I’ve updated what you need to know to calculate the credit. As it was last year, if you were paid…
(Editor’s Note: Somehow, in the chaos of my Sunday morning, I didn’t paste in the second part of the question and first part of my answer. So, edited to reflect those changes… sorry about that!) Taxpayer asks: I’m 23, full time student, lived at home for free, worked…$6500 with withholding of $500. Can I file…
Taxpayer asks: I am very confused. Your blog says that we will be getting back more money this year because of the payroll tax holiday. My withholding must be screwy because I am making less money. What is going on? taxgirl says: Okay, this is where tax laws can get really confusing. Yes, there is…
Taxpayer asks: Was the “Making work Pay” tax credit extended? taxgirl says: No, the Making Work Pay Credit was not extended as part of The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act which was signed into law on December 17, 2010. The credit is still applicable for the 2010 tax season since it…
I’ll admit that I didn’t see yesterday’s tax deal coming. I was fairly certain that the drama would play out through this week. We still have drama but now it’s more of the “let me explain” variety. Let me see if I can sort out for you what happened and why. First, let’s talk timing….
Although the Bush tax cuts are making the most news these days (a logical focus considering the size and scope of the cuts), Congress is considering a number of other tax-related proposals. Among the concerns is what to do about the Making Work Pay Credit. The credit was only made law for two years (2009…
As the debate over extending those Bush tax cuts continues, another tax break is slipping away… The Making Work Pay Credit, in place for the 2009 and 2010 tax years, is likely to not be extended to 2011 or beyond. Tax preparers (and tax software manufacturers) are likely breathing a sigh of relief. The tax…
I’ve written quite a few posts on the Making Work Pay Credit this year. If you’re looking for something specific, try these: Calculating the Making Work Pay Credit Understanding the Making Work Pay Credit What to Do if You Forgot to File the Schedule M Calculating the Making Work Pay Credit When One Spouse Works…
Taxpayer asks: I can’t claim the making work pay tax credit. Do I need to file schedule M anyway? Taxgirl says: Nope. If you’re sure that you don’t qualify, then no need to complete the Schedule M. Just be really sure – you don’t want to leave money on the table!
I’ve received a lot of inquiries related to the Making Work Pay Credit and the Economic Recovery Payment. You cannot receive the maximum credit for both. If you are disabled or retired and received the Economic Recovery Payment, you must report it on your Schedule M when claiming the Making Work Pay Credit. It is…