If you or your spouse receives a paycheck you have been automatically receiving this credit through reduced payroll tax withholdings. Taxpayers receiving less than the full amount of the allowable credit (through reduced withholding) will be entitled to claim any remaining credit when they file their tax return in April. The Making Work Pay Tax Credit provides a refundable tax credit of up to $400 for individuals and up to $800 for married taxpayers filing joint returns. If married, only one taxpayer needs to work in order to receive the full benefit of this credit. This credit does however, phase out should your modified adjusted gross income levels range from $75,000-$95,000 for individuals and $150,000-$190,000 for married tax payers.
If you have any questions or would like more information, please contact:
Loretta Manning
302-656-6632
LManning@CoverRossiter.com