Making Work Pay Tax Credit

Craig

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

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