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Making Work Pay Credit Offers Tax Savings Up to $800

This credit is automatically calculated within your TaxSlayer account based on your filing status and earned income. For tax years 2009 & 2010, the Making Work Pay Credit helps millions of workers and self-employed individuals. Although income limits apply to this credit, it is refundable - meaning that those eligible can get it even if they owe no tax. Most eligible taxpayers qualify for the Making Work Pay Credit of $800 for a married couple filing a joint return or $400 for other taxpayers. The credit equals 6.2% of earned income up to the maximum amount. Thus, any eligible couple filing a joint return whose earned income in $12,903 or more qualifies for the $800 maximum credit. This is true even if the income is earned entirely by one spouse. Other taxpayers qualify for the $400 maximum if their earned income is $6,451 or more. For most workers, the credit is based on the taxable wages reported to them on Form W-2. Self-employed individuals figure the credit using the net profit or loss they receive from a business or farm. Additional calculations are necessary for some taxpayers, including those who have net business losses, or foreign earned income. Some taxpayers are not eligible for the making work pay credit, including: Joint filers whose modified adjusted gross income (MAGI) is $190,000 or more Other taxpayers whose MAGI is $95,000 or more Anyone who can be claimed as a dependent on someone else's return A taxpayer who doesn't have a valid Social Security Number ( SSN ) Joint filers, if neither spouse has a valid Social Security Number Nonresident aliens Other taxpayers qualify for the credit but must reduce the amount of the credit they claim, including: Joint filers whose MAGI is more than $150,000 but less than $190,000 Other taxpayers whose MAGI is more than $75,000 but less than $95,000 Note - After the filing year 2010 this credit was no longer available, however you may still claim this credit if you qualify on amended returns prior to 2010..

What is a SIMPLE 401(k)?

SIMPLE stands for " Savings Incentive Match Plan for Employees ". A SIMPLE plan is a written arrangement that provides you and your employees with a simplified way to make contributions to provide retirement income. Under a SIMPLE plan

Nebraska Subtractions from Income

contributions made to other states' 529 college savings plans here. For questions about this plan go to www.treasurer.org , or contact the State Treasurer's Office at (402) 471-2455. Nebraska Long-Term Care Savings Plan Contribution Enter

Examples of Items to Report as Other Income

Taxable distributions from a health savings account (HSA) or an Archer MSA. Distributions from these accounts may be taxable if a) you engaged in any transaction prohibited by section 4975 with respect to any of your HSAs b) you used any

Colorado Subtractions from Income

the applicable subtraction according to your age. TUITION PROGRAM CONTRIBUTION Contributions to qualified Colorado tuition savings plans can be deducted from your return. The contribution must have been included on your federal income tax return

Kansas Subtractions

by the U.S. Railroad Retirement Board, including U.S. Railroad Retirement Benefits, tier I, tier II, dual vested benefits, and supplemental annuities. Learning Quest Education Savings Program Contribution Enter the amount of contributions

Kansas Additions to Income

the amount of taxable (non-Kansas) bond interest to enter here. Contributions to Any Kansas Public Employee Retirement System Individuals affected are state employees, teachers, school district employees and other regular and special members

Iowa Subtractions From Income

. If both spouses earned income and made contributions to an IRA account , each spouse must claim his or her own contribution, not to exceed $5,500 per spouse ($6,500 if 50 or older). If both spouses made contributions to an IRA but only

What is a SIMPLE IRA?

A SIMPLE IRA plan is a Savings Incentive Match Plan for Employees. The plan gives small employers a simplified method to make contributions toward their own and their employees retirement. Under a SIMPLE IRA plan, employees can choose

What is a Nondeductible IRA?

If you are not covered by an employer-sponsored retirement plan at work, your contribution to a traditional IRA is always tax-deductible, regardless of your modified adjusted gross income (MAGI). However, if either you or your spouse