Discussion:Making Work Pay Credit - MFJ

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Discussion Forum Index --> Advanced Tax Questions --> Making Work Pay Credit - MFJ

Discussion Forum Index --> Tax Questions --> Making Work Pay Credit - MFJ

Heritage120 (talk|edits) said:

12 February 2010
The making Work Pay Credit can be taken for the full $800 even if only one spouse worked because it is based on the lessor of tax liability or the $400 ($800 for MFJ)...correct? I've heard of someone who is deducting only $400 because only one spouse worked so they won't get the other $400 for the non working spouse. My understanding is it is based on the MFJ entity and tax liability as long as one has earned income that qualifies. I wish they wouldn't rename this credit every year.

Rduran (talk|edits) said:

12 February 2010
MFJ may get the full $800.

Taxaway (talk|edits) said:

12 February 2010
Heritage, what were the other names for this credit??

It's not limited by tax liability.

Alexander15 (talk|edits) said:

13 February 2010
The Making Work Pay credit is not limited by tax liability. A couple filing Married Filing Joint would be eligible for an $800 credit even if only one spouse works. The computed credit on a joint return would be reduced if the wages were less than $12,903.

Heritage120 (talk|edits) said:

13 February 2010
To me this is just replacing the stimulus payment of 2008. I think they just packaged it differently for 2009. My bad... Making Work Pay Credit isn't limited to the tax liability. My brain was fried yesterday when I posted. It's the lessor of 6.2% of the earned income or $800 for MFJ. It's amazing how sleep really helps when your doing taxes! I appreciate the input. I have a new client now due to the other preparer not allowing the non-working spouse the $400 credit. That was really the issue.

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