More money could soon be coming your way!
You don't have to do anything; your paycheck will increase almost automatically.
"Most of us will start seeing an increase in our take-home pay this spring as employers adjust the amount of tax withheld from our checks as part of the newly-enacted Making Work Pay credit."
Christopher Miller with the IRS in Wisconsin explains this is the money you've been hearing about. The so-called Making Work Pay credit is one of the key tax provisions included in the new stimulus package (American Recovery and Reinvestment Act of 2009) that President Obama signed into law last week.
"The Making Work Pay credit is 6.2% of the taxpayers' earned income, with a maximum of $800 for married couples and $400 for other taxpayers."
Miller says the credit is phased out for higher income taxpayers, making more than $75,000. Most of us will get about 13 bucks per paycheck, unlike previous years when we all got a separate check in the mail, with some folks mistaking it for junk mail.
Miller reminds us, we'll need to claim the credit when we file our 2009 income tax return next April.
