When I arrived this morning, I found an email from our accounting department warning that my paycheck would be slightly larger. Reading further, I found that this was not due to me receiving a "Handsomeness Bonus" like I had originally assumed, but because of a new tax credit available to most workers called the "Making Work Pay" credit. As part of the recently passed stimulus bill, aka the American Recovery and Reinvestment Act of 2009, eligible workers will receive a tax credit equaling 6.2% of their earned income. The maximum amount credited for the year will total no more than $400 for a single earner, or $800 for a married couple with a joint return. Instead of sending out separate checks like last year, the money will be spread across monthly paychecks from spring until the end of the year. This $400 or $800 tax credit will also be added to 2010 paychecks.
For more information on the "Making Work Pay" credit, go to irs.gov.
--Cody
Picture taken from this photostream and used with permission of a Creative Commons license.
Post new comment