Welcome to the How To Center!

Here you will find tips and tools for maximizing the Making Work Pay Credit.

How To: Learn about the Making Work Pay Credit

  • Visit the Learn section to read about the new ARRA individual tax credit
  • Click here to use the Making Work Pay Savings Estimator

How To: Qualify as an "eligible individual"

  • You must be an employee or self-employed, and be a U.S. resident
  • You cannot be claimed as a dependent on another person's tax returns
  • A partial credit may be available if income is over $75,000 ($150,000 joint)
  • You must provide a valid Social Security Number to claim the credit

How To: Claim the maximum allowable benefit

  • The credit is the lesser of 6.2% of earned income or $400 ($800 joint)
  • Ask your employer when your take-home pay will be adjusted
  • If you are self-employed, review your estimated income on Form 1040-SE
  • Claim the maximum allowable tax credit on your 2009 and 2010 federal returns

How To: Minimize the risk of having to repay an over-credit

  • Review your withholding closely to make sure the credit is applied accurately
  • Multiple jobs, working spouses, and some retirees may see an over-credit
  • Click here to use the IRS Withholding Calculator
  • Consult your tax advisor for advice specific to your circumstances
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The information contained herein is drawn from sources that are believed to be reliable, but it cannot be guaranteed as to completeness or accuracy. The content is not intended to be, and should not be relied upon as, tax, legal, or financial planning advice. Consult your tax advisor for specific advice.

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