The Making Work Pay tax credit is a new credit worth up to $400. This tax credit is temporary and will only be in effect for 2009 and 2010. This credit has already been factored into the withholding tables used to calculate how much tax to deduct from your paycheck.
The credit is worth 6.2% of an individual's earned income, with a maximum credit of $400 per person. Married couples who file a joint tax return thus have a maximum credit of $800.
*People working more than two jobs and who expect to earn more than $75,000, as well as people receiving Social Security benefits AND working may need to review their withholding with their accountants to be sure that they do not have too little withholding.
