Have you noticed the extra money in your paycheck yet?
Since the enactment of the Recovery Act, American workers have seen increases in their paychecks reflecting the new credit and the Administration’s commitment to the middle class. IRS guidance asks that, by April 1, employers must have instituted the lower withholdings for their employees.
The Making Work Pay tax credit is the tax reduction centerpiece of The American Reinvestment and Recovery Act (The Recovery Act) of 2009. The credit provides the most households ever with a tax cut—over 110 million or about 95 percent of working families.
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For 2009 and 2010, the “Making Work Pay” tax credit provides a refundable tax credit of 6.2 percent of earned income up to $400 for working individuals and $800 for married taxpayers.
Families should see at least a $65 dollar per month increase in their take home pay.
The credit will phase out for taxpayers with adjusted gross income in excess of $150,000 for married couples filing jointly and $75,000 for other workers, and thus is fully phased out for taxpayers with modified adjusted gross income in excess of $190,000 for married workers and $95,000 for other workers.
Families should see at least a $65 dollar per month increase in their take home pay.
The credit will phase out for taxpayers with adjusted gross income in excess of $150,000 for married couples filing jointly and $75,000 for other workers, and thus is fully phased out for taxpayers with modified adjusted gross income in excess of $190,000 for married workers and $95,000 for other workers.
Our President wants to help those of us who are not rich. This will take time to get used to.
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