IRS: Don’t Overlook Recovery Act Tax Credits

Recovery Act tax creditsDid you receive your 2009 Economic Recovery Payment – sometimes referred to as the Making Work Pay tax credit?
For taxpayers who owe more than usual, or are getting smaller refunds than in past years, Making Work Pay may help you recover.
Many Americans rushing to meet the April 15 tax filing deadline may not be aware if they have received the Recovery Act’s assistance over the past year in their paychecks from changes made to the federal income tax withholding tables.
If not, many can now claim the tax credit – $400 for working individuals and $800 for working married couples.
The Internal Revenue Service offers a quick and easy form to find out. You can also call their automated telephone service at 1-866-234-2942 and select Option 1 to verify whether you received the payment.
“Most wage earners will benefit from larger paychecks in 2009 and 2010 as a result of the changes made to the federal income tax withholding tables to implement the Making Work Pay tax credit,” according to the IRS.
But if you end up owing taxes because “too little was taken out of your paychecks during 2009,” the IRS said you may qualify for special relief on a penalty that sometimes applies.
Last year’s American Recovery and Reinvestment Act “created a full slate of tax breaks, which can be claimed on tax returns right now,” the IRS said. These include:

One thought on “IRS: Don’t Overlook Recovery Act Tax Credits

  • April 4, 2010 at 4:19 pm

    Instead of just giving a tax credit, our government changed the tax tables last year. Most people didn’t even know of the change and didn’t adjust their withholding. This sounds great as it meant there was an increase in take home pay spread over the year. This should improve spending and improve the economy. Right? The only problem was that if both spouses worked or someone worked two jobs (that never happens, does it?), the credit was given to both paychecks. This means that millions of Americans who never knew of the credit, now have to pay it back for one of their two incomes. It means that millions of Americans are now spending less to make up for this surprise at tax time. Google: “making work credit problems” for more info. Thank you Mr. President.

Leave a Reply

Your email address will not be published. Required fields are marked *