What is the Making Work Pay Tax Credit and how much is it for 2009?
When the Government passed the 2009 economic stimulus plan, part of the plan involved the "Making Work Pay tax credit". This tax credit "will provide a tax credit in 2009 and 2010 equal to 6.2 percent of your earned income up to a maximum of $400 for individual filers and $800 for couples."
Individual Taxpayers who have their taxes withheld from their paychecks will see a decrease in the federal income taxes withheld by their employers from each paycheck by about $30 per paycheck every two weeks (and $60 for joint filers). This plan was put in effect on July 2009.
If you are self-employed, you can claim the credit when you file your 2009 tax return or reduce each of your 2009 quarterly estimated tax payments by $100. If you file your tax return using a tax software program, you should be prompted you to take this credit.