Making Work Pay Credit

[Dr. Shane]

$800/$400 Making Work Pay and $250 Social Security Tax Credits

Quote:

The details of the making work pay credit and one time economic recovery (social security) payment are provided below with a number of frequently asked questions. These tax credits were part of the American Recovery and Reinvestment Act and provide:

- A refundable tax credit of up to $400 for working individuals and up to $800 for married taxpayers filing joint returns. This tax credit will be calculated at a rate of 6.2 percent of earned income and will phase out for taxpayers with modified adjusted gross income in excess of $75,000, or $150,000 for married couples filing jointly. Taxpayers who do not have taxes withheld by an employer during the year can also claim the credit on their 2009 tax return.

- A one-time economic recovery payment of $250 in 2009 to retirees and disabled people receiving Social Security benefits. The making work pay tax credit ($400 or $800) will be reduced by $250 if you are eligible for both credits or special credits for certain government retirees. The one-time economic recovery payment will not count as income for SSI.

[update] President Obama recently announced an Extra $250 Social Security Stimulus Payment in 2010 for Retirees, Veterans and the Disabled.

President Obama reduced the withholdings from the payroll so as to funnel more money into the economy. This tax credit is suppose to replace the withholding that were not withheld, if I understand it correctly.

[bonnie]

$800/$400 Making Work Pay and $250 Social Security Tax Credits

Quote:

The details of the making work pay credit and one time economic recovery (social security) payment are provided below with a number of frequently asked questions. These tax credits were part of the American Recovery and Reinvestment Act and provide:

- A refundable tax credit of up to $400 for working individuals and up to $800 for married taxpayers filing joint returns. This tax credit will be calculated at a rate of 6.2 percent of earned income and will phase out for taxpayers with modified adjusted gross income in excess of $75,000, or $150,000 for married couples filing jointly. Taxpayers who do not have taxes withheld by an employer during the year can also claim the credit on their 2009 tax return.

- A one-time economic recovery payment of $250 in 2009 to retirees and disabled people receiving Social Security benefits. The making work pay tax credit ($400 or $800) will be reduced by $250 if you are eligible for both credits or special credits for certain government retirees. The one-time economic recovery payment will not count as income for SSI.

[update] President Obama recently announced an Extra $250 Social Security Stimulus Payment in 2010 for Retirees, Veterans and the Disabled.

President Obama reduced the withholdings from the payroll so as to funnel more money into the economy. This tax credit is suppose to replace the withholding that were not withheld, if I understand it correctly.

Maybe if President Obama and friends had ever worked a real job or run a business they might understand just how pathetic this is as a way to stimulate the economy