| How will your stimulus payment affect your taxes? | | | | including that payment when claiming the Making Work |
| The American Recovery and Reinvestment Act of | | | | Pay Tax Credit. |
| 2009 included a one-time Economic Recovery | | | | Economic Recovery Payments Not Taxable |
| Payment. This was a $250 payment made in May to | | | | These payments are not taxable income and does not |
| retirees, disabled individuals and recipients of social | | | | count as income for SSI; however, if you earned |
| security. It was meant to provide stimulus money to | | | | income and also received social security, veteran's |
| those taxpayers that don't work and wouldn't have | | | | benefits or railroad retirement you must reduce your |
| received money through the Making Work Pay Credit. | | | | Making Work Pay Tax Credit by the amount of the |
| But was this payment taxable and must you claim it on | | | | payment you received. |
| your tax return? | | | | Taxpayers with earned income will claim the Making |
| The Making Work Pay credit was given to working | | | | Work Pay Tax Credit by attaching IRS Schedule M to |
| taxpayers in order to increase their spending power. | | | | their 2009 income tax return. This form will calculate |
| The credit was received in workers' paychecks | | | | the amount of credit you are entitled to and reduce |
| through a reduction in their withholding taxes resulting in | | | | that amount by any Recovery Payment you received. |
| an increase in take home pay. The government | | | | In some instances, the combination of reduced |
| identified a group of taxpayers who wouldn't receive | | | | withholding due to the Making Work Pay credit and |
| this credit since they may not be employed and issued | | | | receipt of an Economic Recovery Payment may |
| the Economic Recovery Payments in order to | | | | result in a reduction of your refund or even taxes |
| increase their spending power, too. However, many | | | | owed. Using an online tax preparation site will help you |
| taxpayers that received this payment did, in fact, work | | | | more easily determine the amount of credits you are |
| in 2009 and are also eligible for the Making Work Pay | | | | entitled to and calculate the difference between any |
| Credit. | | | | credits and payments received automatically. |
| The Making Work Pay Credit is worth up to $400 for | | | | Not Sure if you Got an Economic Recovery |
| individuals or $800 for couples. The Economic | | | | Payment? |
| Recovery Payments were worth $250 for individuals. | | | | Taxpayers who are not certain if they received an |
| If you were eligible for both, the amount of your | | | | Economic Recovery Payment should check with the |
| Making Work Pay Credit will be reduced by the | | | | appropriate agency - the Social Security Administration, |
| amount of the Economic Recovery Payment you | | | | Department of Veterans Affairs or the Railroad |
| received. If you are one of these taxpayers be careful | | | | Retirement Board - before preparing their taxes. |
| not to slow down your tax refund by not properly | | | | |