Making Work Pay Tax Credit
Once again this year, most taxpayers will need to file a Schedule M in order to claim the Making Work Pay Tax Credit. Its worth up to $400 for single taxpayers and up to $800 for married filing jointly couples. It’s the same schedule M form that you had to file last year to receive the credit; it just hasn’t gotten very much publicity lately so some people might forget about it.
Most tax software will automatically calculate it for you, but if you’re preparing a return by hand, you need to remember to include the form. Here’s a link: http://www.irs.gov/pub/irs-pdf/f1040sm.pdf
Most people who earned wages or were self employed qualify for the Making Work Pay tax credit, although if your parents claim you as a dependent then you won’t qualify. Also, persons filing a non-resident return or persons filing a return without a work-valid social security number won’t be able to claim one either. There are also restrictions for high-income wage earners as well.
If you need more information, here’s a link to the instructions for the form. http://www.irs.gov/pub/irs-pdf/i1040sm.pdf