Friday, February 20, 2009


Larry, I here that I am supposed to get some money from the government because of the law that the president passed. How do I get my share?


Edeth, don't get too excited. What you are talking about is what the government calls the "Making Work Pay Credit." I have detailed information on this in a previous posting.

If you are an employee you will see the credit in your paycheck. The IRS will issue revised tables for your employer very soon. The 12 months of the credit will be crammed into about nine months of paychecks. That’s about $10-$20 extra per week. WHOOPEE!

If your are self-employed to get any advance benefit from the credit you will have to reduce quarterly estimated payments.

Here is the rub. The exact amount of the payroll tax credit for the year will be calculated when you file your 2009 return. If your income (adjusted gross income to be exact) is over $75,000 for individuals or $150,000 for married you will have to pay the money back with your 2009 return.