Making Work Pay Credit is designed to increase your take-home pay
The Making Work Pay Credit reduces your 2009 and 2010 taxes by 6.2 percent of your earnings, up to a maximum reduction of $400 for singles or $800 for couples. If you're eligible for this credit, chances are you've already been receiving it, in the form of reduced withholdings on your paychecks.
Unlike 2008's tax stimulus payments or rebates—which were delivered through direct deposit to bank accounts or checks in the mail—workers received the benefit of this tax cut through slightly higher paychecks through the last part of 2009 and all of 2010. Most singles enjoyed an extra $45 a month in take-home pay and most married workers got an additional $65 a month in their paychecks.
Some lucky workers began seeing extra money in their paychecks beginning in March 2009, and almost everyone else did by April 2009.
After December 31, 2010, this credit expires and paychecks go back to their pre-credit amounts.