Making Work Pay

Making Work PayWhat is the Making Work Pay Credit?
The Making Work Pay provision of the American Recovery and Reinvestment Act will provide a refundable tax credit of up to $400 for working individuals and up to $800 for married taxpayers filing joint returns.

Who can claim the credit?
This tax credit is calculated at a rate of 6.2 percent of earned income and phases out for taxpayers with modified adjusted gross income in excess of $75,000, or $150,000 for married couples filing jointly.

You must have earned income for the year to receive this credit.  The credit is allowed if you had income from self-employment. 

Work Related Expenses

If you paid expenses related to your work, you may be able to take advantage of certain deductions allowed under the law including:

  • Education
  • Automobile
  • Travel and meals
  • Entertainment
  • Gifts
  • Supplies
  • Union dues

If you incurred work-related expenses, you may be able to deduct them on Schedule A.  Education expenses may also be eligible for a tax credit.

Please complete our Employee Business Expense Organizer and bring it with you to your tax interview.