Search
Advice » Salary & Benefits» Salary Information » Will the Making Work Pay Tax ...
Will the Making Work Pay Tax Credit Cost You at Tax Time?

Will the Making Work Pay Tax Credit Cost You at Tax Time?

Most people who worked during some part of 2009 can claim the Making Work Pay tax credit, part of the federal government’s 2009 stimulus plan. But if you’re married, work two jobs or were unemployed for part of last year, the program could have messed up your income tax withholding.

The Making Work Pay credit is equal to 6.2 percent of a person's earned income. If you earned less than $6,451, you won’t get the full $400 granted to single filers. Married couples had to earn at least $12,903 to get the full $800 payment. The benefit is phased out for singles earning $75,000 or more and couples earning $150,000 or more.

Making Work Pay payments came in the form of reduced tax withholdings over nine months of 2009, which could have caused problems for those whose spouses were also getting the payments and those who worked two jobs.

In both those cases, your employer may have given you too much Making Work Pay money. That could happen if your spouse’s income pushed you over the limit, but your employer didn’t know, or if you had two employers that both put extra Making Work Pay money in your paycheck.

And since they don’t qualify, students and others who can be claimed as dependents, Social Security recipients who work and workers who don’t have a valid Social Security number may also not have had enough taxes withheld if their employer thought they qualified.

Pensioners are another group with the potential to have incorrect withholding because pension income doesn’t qualify for the tax credit. The IRS warned pension funds to adjust their withholding, but your fund may have missed the memo.

Retirees who collect Social Security, Supplemental Security Income, VA benefits or Railroad Retirement benefits and who also got a one-time Recovery Act check for $250 in 2009 need to subtract that amount from their Making Work Pay tax credit.

And anyone who was unemployed for part of the year might find they’re either underwithheld because they took the Making Work Pay money but didn’t earn enough to qualify, or that they will receive Making Work Pay funds because they qualified but didn’t yet collect their $400. You can use Schedule M to claim those owed funds.

But if the Making Work Pay tax credit left you underwithheld, the IRS may send you a letter saying you owe an estimated tax penalty. If that happens, use Form 2210 to ask the government to waive the penalty.

How do you find out if your withholding is correct? Use the IRS withholding calculator to compare what should be coming out of your paycheck with what is coming out of your paycheck.

Still confused? Consider seeking professional help or using software to calculate your taxes -- it will do all the computations for you.

Latest Jobs

Somerville Housing Authority
Posted: 07/29/2014
Somerville, MA, 02145
Randstad
Posted: 07/29/2014
Houston, TX, 77079
American Anesthesiology
Posted: 07/29/2014
Knoxville, TN, 37916
Enterprise
Posted: 07/29/2014
Williamsburg, VA
Learning Care Group
Posted: 07/29/2014
Columbus, OH

Want more personalized results?  Update Your Profile

 
 
 

Monster Communities

Teaching Community
Where teachers meet and learn.
ArtBistro
Create and connect.
Excelle
Networking for the career-minded woman.
Nursing Link
Where nurses call the shots.
More Monster Communities

Monster Partners

Scholarships
Scholarships, financial aid and more ways to pay for school.
Education.org
Find top campus and online degree programs.
Military.com
Military portal for the US Army, Navy, Air Force, Marine Corps and Coast Guard.
Financial Aid
Scholarships & financial aid.
Staffing for Government Jobs
Staffing and hiring solutions for federal government agency jobs.
More Monster Partners

Job Hunt Strategy

Six Ways to Make a Recruiter Hate You
If you want to blow your chances with recruiters -- and, by extension, with the companies they work for -- here are six perfect ways to do so.

Resumes & Cover Letters

Rev Up Your Resume to Relocate
Hoping to relocate? Get the ball rolling on landing the right job in the right location with these expert resume and cover letter tips.

Interviewing

100 Potential Interview Questions
Interview questions can run the gamut. You probably won't face all 100 of these, but you should still be prepared to answer at least some of them.

Salary & Benefits

10 Questions to Ask When Negotiating Salary
Most of us aren't natural negotiators, but asking these 10 questions during salary negotiations can help you get everything you deserve.

Employee Sourcing

Alt text
November Monster Employment Index Grows 13% Year-Over-Year, Tenth Consecutive Month of Positive Annual Growth.

For Seekers

Campus and Online Degrees
Advance your career and earn more with an online degree.
Free Salary Wizard
What are you worth? Find out and negotiate a better salary.
Research Careers
Get information on jobs and career paths to help guide your choices
Questions & Answers
Find answers to all your career related questions -- powered by Yahoo! Answers
Resume Distribution Service
Our distribution service puts your resume right in the hands of recruiters.
Resume Writing Services
Our experts will craft a keyword-rich resume that stands out in the crowd.
More Career Resources

For Employers

Career Ad Network
Target your job posting to more candidates on thousands of websites.
Hire Right Background Checks
Explore our background check packages to improve the quality of your hires.
Hiring Home Page
Find the best candidates for your business with Monster hiring solutions.
Job Postings
Find the right solution for your hiring needs. Starting at $99.
Power Resume Search
Monster's new search technology precisely matches people with your jobs.
Resource Center
Find staffing insights, labor trends, HR best practices and more.
Target Post
Connect with skilled, hourly and administrative candidates for only $99.

Social Media

Jobs on Twitter
Find jobs in your area and industry.
Monster Careers
Tune into our career advice and discussions tackling a wide range of topics and industries.
Monster Corporate & PR
Stay up-to-date on the latest news. Get the 'Who', 'What', 'When', and 'Why' on all things Monster related.
Monster Customer Service
Got a Monster question? We've got the answer. Whether you're a job seeker or employer, we can help you find the answers you need.
Monster for Employers
Find advice on hiring.
Follow Us
Check out our many pages and stay connected with the latest industry news, events, career advice and job openings.

Other Links

Monster Company Profiles
Explore companies and get information to guide your career decisions.
Compare Salaries
See how your pay stacks up to others in your field.
iPhone Application
Download the Monster app for iPhone and iPod touch.
Monster Job Seeker Blog
Monster Job Seeker Blog.
Monster Thinking Blog
Monster's Recruitment Trends Blog.
Jobs & Career Resources
Search Jobs:
For Employers: Post Jobs | Search Resumes | Advertise
About Monster | Work for Monster | Advertise with Us | AdChoices | Partner with Us | Investor Relations | Social Media
Terms of Use | Privacy Center | Accessibility Center | Help | Security | Contact Us | Sitemap | Mobile
©2014 Monster - All Rights Reserved U.S. Patents No. 5,832,497; 7,599,930 B1; 7,827,125 and 7,836,060 MWW - Looking for Monster Cable? - V: 2014.4.35.44-314
eTrustLogo