For the past two tax years – 2009 & 2010 – many of us have received the Making Work Pay Credit.
This credit expired at the end of 2010, and was not part of the two year tax extensions congress passed at the end of last year. You can see this credit on line 63 of the 1040 after filling out and completing Schedule M.
The maximum credit for a married couple filing a joint return is $800 and $400 for other taxpayers.
As with all tax credits, there are some restrictions and limitations, but for the most part, many tax payers have been able to receive this credit over the past two years.
Say ‘Goodbye’
The 2010 tax year is the last year the Making Work Pay Credit will be available on our taxes.
All things being completely equal, if your 2011 tax situation looks like it is going to be the same as your 2010, your refund will go down by $800, if you’re married filing jointly, and $400 for other taxpayers.
Conversely, if you owed additional taxes to the IRS in 2010, and you expect your 2011 taxes to be the same, you will most likely owe an additional $800 if you’re married filing jointly, and $400 for other taxpayers.
Plan Ahead
If you did receive the Making Work Pay Credit in 2010, plan ahead and make the necessary changes so that you will not be surprised next year.
If you do ever need any tax or financial advice focused on your specific situation, feel free to contact me anytime.
*Please keep in mind that all the information I post on this site is for general purposes only. I understand that every person’s situation is unique and should be treated as such. If you would like more information about how something listed in any of my posts specifically affects you, please feel free to comment below, email me, or call me anytime.