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More Money in your Paycheck? 

With new tax tables on the books the federal government could be giving you a little extra cash to spend. Available for tax years 2009 and 2010 the “Making Work Pay” tax credit will give back 6.2% of a taxpayer’s earned income with a maximum credit of $800 for married couples and $400 for others. However, everyone isn’t eligible to receive the money as it is phased out for higher income taxpayers. Many higher income taxpayers will see little to no change to their take-home pay because the credit is aimed at Americans who are married and filing jointly who make less than 150-thousand in earned income each year. Individuals whose modified adjusted gross income of more than 75-thousand will see less as well. The tax credit is part of the American Recovery and Reinvestment Act. It is not to be confused with last year’s one time economic stimulus payment. IRS Commissioner Doug Shulman says since employers and payroll companies will handle this chance, people typically won’t need to tak any additional action. However, the IRS does suggest people who have multiple jobs to revise their W-4 Form to make sure enough federal money is being withheld. If you are eligible and haven’t seen a change in your paycheck it may be because your employer hasn’t switched tax tables yet. Employers have until April 1 to make the change.