The Making Work Pay IRS tax credit was introduced by President Obama for the 2009 tax year, but it will be available again for 2010. Here are four things you need to know about the credit:
1. The actual credit is worth 6.2% of your earned income up to your maximum credit amount: $800 for a married couple filing jointly and $400 for other taxpayers.
2. The maximum amount is reduced for higher earners; reductions start at $75,000 earned income for single taxpayers and $150,000 for those married and filing jointly.
3. Self-employed filers may adjust their quarterly tax payments to reflect their expected credit; those who get a paycheck have their deductions adjusted by their employer throughout the year.
4. Certain taxpayers should review their withholding to make sure they are setting aside enough to pay their tax bill. These include people with more than one job, married couples where both spouses work, dependents, pensioners, and those working without a valid social security number.
As always, those who don’t adjust their withholding appropriately could find themselves overpaying their taxes or owing a balance to the government come April 15th.
At The Pew Law Center, PLLC, we understand that if you do run into tax problems with the IRS, it can be overwhelming. Whether you owe back taxes, haven’t filed taxes for several years, or have received an audit or wage garnishment notice from the IRS, the attorneys at The Pew Law Center, PLLC can help you or your business with these and any other federal and state tax problems.
We are a dedicated debt relief law firm. We help people from Phoenix, Mesa, Gilbert, Queen Creek, Chandler, Scottsdale, Apache Junction, Tempe and throughout Arizona work through tough tax problems or file for bankruptcy every day. We can help stop the debt cycle and give you relief from your overwhelming, burdensome, and crushing tax problems. Please don’t wait another moment. Call us right away – our attorneys will help get you the fresh start you deserve.