Making Work Pay Credit Reminder

Unless Congress acts, 2010 marks the second, and final, year of the Making Work Pay Credit. This provision in the tax code allows for a tax credit of up to $400 for individuals and $800 for married couples filing jointly. The credit phases out for those with incomes in excess of $75,000 or $150,000 married filing jointly.

Please recall that federal payroll withholding tables were adjusted so that for most clients your tax refund will be approximately the same. However, if your income is higher or you have more than one job, you could actually owe slightly more than is typical. It is also important in some cases to file a tax return even if you think you owe no tax as you may be eligible for this credit.