by Edward A. Zurndorfer, CFP
The Making Work Pay Credit (MWPC) was enacted as part of the American Recovery and Reinvestment Act of 2009 (ARRA) which was signed into law on Feb. 17, 2009. The maximum credit is $400 for single taxpayers and $800 for married taxpayers filing jointly. The credit will be available for 2009 and 2010.
In many ways the MWPC is similar to the Economic Recovery Payment (ERP) which was enacted in the Economic Stimulus Act for the 2008 tax year. Both the MWPC and the ERP are calculated based on earned income and both are phased out above a modified adjusted gross income (MAGI) of $75,000 for singles and $150,000 for married filing jointly. Both the ARRA and the economic stimulus act were designed to put more money in the public’s pocket in order to turn around the depressed economy and to help consumers start spending.
About the Author
Edward A. Zurndorfer is a Certified Financial Planner and Enrolled Agent in Silver Spring, Maryland. He is also a registered representative with Multi-Financial Securities Corporation (Branch A9X), member FINRA/SIPC, also located in Silver Spring, Maryland.
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Tags: CSRS, Retirement
