Welcome to the How To Center!

Here you will find tips and tools for maximizing the Making Work Pay Credit.

How To: Learn about the Making Work Pay Credit

• Visit the Learn section to read about the new ARRA individual tax credit
• Click here to use the Making Work Pay Savings Estimator

How To: Qualify as an "eligible individual"

• You must be an employee or self-employed, and be a U.S. resident
• You cannot be claimed as a dependent on another person's tax returns
• A partial credit may be available if income is over $75,000 ($150,000 joint)
• You must provide a valid Social Security Number to claim the credit

How To: Claim the maximum allowable benefit

• The credit is the lesser of 6.2% of earned income or $400 ($800 joint)
• Ask your employer when your take-home pay will be adjusted
• If you are self-employed, review your estimated income on Form 1040-SE
• Claim the maximum allowable tax credit on your 2009 and 2010 federal returns

How To: Minimize the risk of having to repay an over-credit

• Review your withholding closely to make sure the credit is applied accurately
• Multiple jobs, working spouses, and some retirees may see an over-credit
• Click here to use the IRS Withholding Calculator
• Consult your tax advisor for advice specific to your circumstances