Making Work Pay Credit
Millions Could Owe More Taxes Due to Making Work Pay Credit
According to a report issued earlier this month, millions of taxpayers may owe additional taxes for 2009 due to underwithholding caused by the Making Work Pay Tax Credit (MWPC) . A key part of the American Recovery and Reinvestment Act (ARRA) , the MWPC is an individual tax credit in the amount of 6.2% of earned income not to exceed $400 for single returns and $800 for joint returns in 2009 and 2010. The credit begins to phase out at adjusted gross income (AGI) in excess of $75,000 ($150,000 for married couples filing jointly), and phases out completely at modified AGI of $95,000 ($190,000 on a joint return). The credit was designed. Read More.
How Can Your Business Benefit from the American Recovery and Reinvestment Act?
In a recent audio podcast , CB&H’s Scott Duda discussed key provisions of the American Recovery and Reinvestment Act (ARRA) that relate to businesses. The ARRA was signed into law by President Obama in February as part of a federal effort to jumpstart the nation’s economy, save jobs and increase transparency in government actions. “The successful businesses of tomorrow will take advantage of the provisions of this Act to ensure they are better positioned, both now and in the future, than their competitors,” said Duda. In the podcast, Duda talks specifically about: ARRA’s effects on small businesses the criteria to define a small business and the benefits that a small. Read More.
New Withholding Tables Reflect Making Work Pay Credit
When will your employees start seeing the tax benefits included in the Economic Recovery Act signed into law by the President last month? The IRS released new withholding tables reflecting the Making Work Pay credit on February 21, 2009. The IRS is asking employers to begin using the new withholding tables no later than April 1st, so most taxpayers will see the credit in their paychecks this Spring. The $400 credit will show up as about an extra $10 a week in the paychecks of eligible individuals. By keeping the benefit small, Congress hopes that the average person will be more likely to spend rather than save the. Read More.