This credit – still available for 2010 – equals 6.2 percent of a
taxpayer’s earned income. The maximum credit for a married couple filing
a joint return is $800 and $400 for other taxpayers.
2. Eligible self-employed taxpayers can benefit from the credit by
evaluating their expected income tax liability and, if they are
eligible, by
making the appropriate adjustments to the amounts of their estimated tax
payments.
3. Taxpayers who fall into any of the following groups during 2010
should
review their tax withholding to ensure enough tax is being withheld.
Those who
should pay particular attention to their withholding include:
- Married couples with two incomes
- Individuals with multiple jobs
- Dependents
- Pensioners
- Workers without valid Social Security numbers
Having too little tax withheld could result in potentially smaller
refunds
or – in limited instances –small balance due rather than an
expected refund.
4. The Making Work Pay tax credit is reduced or unavailable for
higher-income taxpayers. The reduction in the credit begins at $75,000
of
income for single taxpayers and $150,000 for couples filing a joint
return.
5. A quick withholding check using the IRS Withholding Calculator on
IRS.gov
may be helpful for anyone who believes their current withholding may not
be
right. Taxpayers can also check their withholding by using the
worksheets in
IRS Publication 919, How Do I Adjust My Tax Withholding?. Adjustments
can be
made by filing a revised Form W-4, Employee’s Withholding Allowance
Certificate. Pensioners can adjust their withholding by filing Form
W-4P,
Withholding Certificate for Pension or Annuity Payments.
6. If you more tax advice you can contact me atdick@ecommercetaxadvice.com.
No matter what tax advise
that you need we can help you though it.
