The various provisions in last year's economic stimulus bill will command the attention of many tax preparers this filing season, and the Internal Revenue Service is working to provide people with the information they will need to know.
For example, a recent announcement on the IRS Web site offered some pointers on the Making Work Pay Tax Credit, which was one of the provisions in the stimulus bill aimed at lowering the average worker's tax bill somewhat.
The IRS notes that the Making Work Pay provision offers a refundable tax credit of up to $400 for individuals and $800 to married couples filing jointly. Typically, the credit has been handled by employers on a worker's automated withholdings.
Some taxpayers will find that they are able to claim any remaining Making Work Pay funds that they may have not used yet.
The IRS also noted that last year, the credit was spread out over nine months, while for 2010, it will be spread out over 12 months. With that in mind, some workers may see a slight change in the amount of their paychecks. The IRS went on to remind people to be sure to verify whether sufficient taxes are being withheld from their pay to avoid any unexpected costs at filing time.
For more on calculating the Making Work Pay Tax Credit, visit this calculator provided by Liberty Tax Service
. Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs.