Who does the Making Work Pay tax credit affect?

If you paid close attention to your paychecks in 2009, you may have noticed a small increase. That was part of the Making Work Pay tax credit, a new addition to the tax code from the 2009 Recovery and Reinvestment Act, which added up to about $400 per individual and $800 for married couples filing jointly.

When you do your taxes this year (2010) fill out the form Schedule M to make sure you received the total credit. Keep in mind that you could owe the government some money if you had too little tax collected or you were ineligible for the tax credit.

Individuals with a modified adjusted income above $95,000 (phase out begins at $75,000)

Couples filing jointly with a modified adjusted income above $190,000 (phase out begins at $150,000).

See related links for more information from the IRS.

More input from WikiAnswers contributors:

• If you are rich or run a large business then you pay into the credit through the payroll taxes. Typically those who are eligible and reap the most benefit to collect the MWPTC are low income workers who fall under the poverty line. Why? If you make 16K a year, and have one child, under the previous tax plans and credits you would pay roughly $33.00 to the federal government. Mind you that's on top of the 2.2K they are keeping.

• About 10 million Americans will be helped throught MWPTC. With a little extra money those Americans will be able to improve their lives and the lives of their children. Part of our problem with economy is the top 5% get richer but the middle class is getting poorer and it is destroying our economy.

• I'd say one major problem with the economy is the continuation and growth of the unfairness that as of 2006 (last year #s avail): The top 5% of income pay a full 60% of all Taxes. Bottom 50% of income pay 3% of all taxes, and in fact a full 32% pay no tax at all! Certainly makes for a strong argument that a major problem is too many people, especially those relying on society the most, don't contribute their fair share, while seeming to think its OK to burden others with doing so for them. Disgraceful...

• it makes sense to me that those with greater resources, who benefit the most from the current economic system, should pay their dues to society. The argument above appears to assume that those who are in the bottom half of incomes in this country willfully stay there to free-ride on the system, which is offensively untrue. I'm sure anyone who makes less than the median income would be thrilled to be in a position where they made enough money to owe taxes. I know I would be.