This credit for working people, $400 individuals and $800 for working married couples, is a credit utilized during this year by reducing increments in tax due by 6.2% resulting in possible higher paychecks for those who qualify. Those working individuals that do not receive the full amount or any of this credit during the year may be able to apply for it on their income tax returns. Employers will have generally calculated this change in withholding by early last Spring. You can make changes to your withholding by filing Form W-4 with your employer.
Those that are self-employed may also benefit from this credit if they qualify by adjusting their scheduled estimated payments during the year and filing their 2009 Income Tax Return.
"If you're not eligible for the Making Work Pay tax credit, withholding changes could mean a smaller refund next spring. A limited number of people, including those who usually receive very small refunds, could in some situations owe a small amount rather than receiving a refund. Those who should pay particular attention to their withholding include:
- Pensioners
- Married couples with two incomes
- Individuals with multiple jobs
- Dependents
- Some Social Security recipients who work
- Workers without valid Social Security numbers" (IRS)
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