WASHINGTON, DC- As of today, eligible workers should see the effect of the new Making Work Pay tax credit in their paychecks. U.S. Senator Bob Casey (D-PA) applauded this most recent example of the American Reinvestment and Recovery Act providing relief to Pennsylvanians and the economy. Workers will receive up to $400 and up to $800 for married couples.
“This new tax break will provide some assistance in these tough times to 4.8 million working families in Pennsylvania,” said Senator Casey. “Ninety-five percent of families will see extra money in their pay checks by this month.”
Employers had until today to implement new withholding schedules that reflect the new tax credit.
For 2009 and 2010, the Making Work Pay tax credit provides a refundable tax credit of 6.2 percent of earned income up to $400 for working individuals and $800 for married taxpayers.
Families should see at least a $65 dollar per month increase in their take home pay. Over 110 million American families will benefit from the tax credit.
The credit will phase out for taxpayers with adjusted gross income in excess of $150,000 for married couples filing jointly and $75,000 for other workers, and thus is fully phased out for taxpayers with modified adjusted gross income in excess of $190,000 for married workers and $95,000 for other workers.
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