Complete Schedule M if you received Making Work Pay credit

Wednesday, February 12th, 2014 By

A smiling young woman is taking a break from completing her tax return. Apparently she has already completed Schedule M. Have you?

Sure, you were happy to get extra money back with Making Work Pay, but make sure you fill out Schedule M to receive credit for that tax credit! (Photo: ThinkStock)

Tax day is almost upon us, and many taxpayers are wondering what Schedule M is and whether they need to fill it out on their tax return. It relates to the Making Work Pay tax credit, where qualifying individual filers receive $400 and qualified couples receive $800. So that people could get that money as soon as possible, payroll withholding tables were adjusted to reduce the amount of federal taxes taken out of paychecks, says MSN MoneyCentral. Unfortunately, the few extra dollars per paycheck was small enough (not quite same day loans) to where many workers didn’t notice. Extra spending to stimulate the economy didn’t occur as politicians had hoped, and there also was some confusion regarding Schedule M as it relates to the Making Work Pay stimulus.

Taxpayers aren’t sure if they need to complete Schedule M

This is very important, says MoneyCentral: If you received the Making Work Pay tax credit, you must fill out Schedule M. Essentially, the Making Work Pay tax credit isn’t credited to you until you claim it on your return. This is something more than 4 million 2009 tax filers so far have gotten wrong, according to the IRS. They are fixing the mistake, which will slow down the overall process of reviewing returns. This in turn means that it will take longer for people to receive their refunds.

Where Schedule M applies on your tax return

Look at page 2 of your 1040 form. In the “payments” section (lines 61 through 71), the Making Work Pay tax credit amount belongs on line 63. It’s in a similar place on the 1040A form. On the 1040-EZ, you figure Schedule M on the back of the form, using the worksheet. Filers calculate the Making Work Pay tax credit amount on Schedule M and transfer the result to line 63, says MoneyCentral. It isn’t anything like payday loans, but it is something that was a welcome sight to millions of employed American taxpayers in need of relief during the recession.

Related Video:

http://www.youtube.com/watch?v=vkQUwaQGf0I

Previous Article

« Need a loan? Get cash now!

When there's not enough cash until payday, online loans really do help. They're great for emergencies or major expenses… or anything at all. African American couple using a laptop to apply for cash now.
Next Article

Maximizing money now means careful job planning »

For employees looking to maximize their money now, it’s important to know how to work smart.

This post has 2 comments

  1. Jane says:

    How do I know if I received it or not?

  2. guest says:

    am i to understand by the sch M booklet of instructions and the form that if you received a credit in 2009(not the 2010 tax year mind you!) then you need to reduce the 2010 credit by that amount? Then you can put that on your 1040. Seems you get a credit in 2009, get it in the mail, THEN you REDUCE your 2010 amount by the 2009 amount. Make sense?

Trackbacks / Pingbacks

    Leave a Reply

    Other recent posts by Steve Tarlow

    Richard Eskow cannot prove anti-payday loans claims (Pt. 2)

    World Bank consultant Richard Eskow uses the Huffington Post as his anti-payday loans platform, but misses the cracks in his own platform…
    Atlas is doing more than shrugging beneath the weight of the world. Apparently, trying to present a convincing amount of proof against payday loans is a similarly weighty matter for Richard Eskow.

    Does Illinois earthquake portend coming of Blago, or Mothra?

    A 3.8 register Illinois earthquake woke the people of Chicagoland at 4 a.m. this morning. This doesn't happen to them every day, apparently.

    Anonymous Credit Cards: Safety for Consumers, Merchants and Banks

    Androulaki and Bellovin of Columbia University propose an anonymous credit card system where the privacy of all is respected. Identity theft could be eliminated
    Using credit cards can be a pleasure and a pain. Will anonymous credit cards make security one less thing to worry about? (Photo: flickr.com)