Work? Get up to $800 back on taxes
Posted: 03.31.2010 at 5:47 PM

JEFFERSON CITY -- Tax crunch time is upon us but there is some good news. You might be eligible for a tax credit up to $800, just for working.

"If you earned income from wages last year, you're gonna be eligible for this credit,” IRS Spokesperson Michael Devine said.

It was designed to keep more money in your pocket all year long. The Making Work Pay Tax Credit allows your company to withhold less money from your paycheck, which means you got more money. It’s about $400 if you're single and $800 for couples.

"This is a credit that everybody got last year,” Devine said. “You got it during the year, a little more on your paycheck."

The credit is handled by your employer through automated withholding. But the credit has to be reported on your taxes for things to even out. And there are a couple of scenarios that can cause confusion. One of those is working more than one job.

"If you're single and just had one job, you probably don't have anything to worry about,” Devine said. “But if you're married and both of you work or if you have two jobs, you're probably being under withheld."

Which means you might end up owning on your taxes.

The IRS says another problem is people not claiming the credit. Most tax preparers and computer programs will calculate the credit for you, but you could miss it if you do your taxes by hand.

Also, the credit is only for those with incomes under $75,000 for singles, or $150,000 for those married filing jointly.

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