Did you know that you can pocket some extra cold, hard cash this tax season thanks to the Making Work Pay tax credit? In 2010, a single taxpayer is eligible for up to $400 while married couples qualify for a maximum of $800. In most situations, the credit is built into the withholding tables resulting in less tax taken out of your pay. To account for Making Work Pay credit this tax season, the IRS is asking individuals to file the Schedule M form with the 1040 and 1040A tax claims. For those who use the simplest return, 1040EZ, there's a work sheet on the back to compensate for the credit.
If you're not eligible for Making Work Pay credit, expect a change with the return amount from 2010. In fact, some taxpayers who normally get a small refund may owe this year because they didn't qualify for the credit.
Here's a list of those who should pay special attention to their withholding, according to IRS.gov:
- Pensioners
- Married couples with two incomes
- Individuals with multiple jobs
- Dependents
- Some Social Security recipients who work
- Workers without valid Social Security numbers
Not sure if you qualify for the $400 credit? Schedule M will help taxpayers sort out those issues. Also, filing through an online service like TurboTax will help clarify the Make Work Pay tax credit and save you from many errors that might not have been caught on paper.
As previously reported, the IRS unveiled a new
