Reporter speaking: If you got some extra cash in your paycheck last year…then you benefitted from the Making Work Pay tax credit…and now this year you have to account for that money. Here’s how.
The Making Work Pay tax credit provided up to $400 per person, or twice that for a married couple filing a joint return.
The credit was automatic via payroll tax withholding from paychecks. But to officially claim the credit, taxpayers still have to do some work when they file their returns.
To make sure the credit is credited to you, you must fill out Schedule M and file it with your personal income tax return if you use the long Form 1040 or the slightly shorter Form 1040A.
If you file Form 1040EZ, fill out the Making Work Pay worksheet on the back of that form.
In some cases, taxpayers won't get the full credit. This could be the case if you had two jobs, are claimed as dependent on someone else's return or for couples where both the husband and wife work.
But for most taxpayers, the extra filing of Schedule M will ensure that you get full credit for the Making Work Pay credit.
Want to know more? Visit the 2011 Tax Guide at Bankrate.com. I’m Kristin Arnold.