Reduction of Making Work Pay Credit for High Income

Collapse
X
 
  • Time
  • Show
Clear All
new posts
  • dyne
    Senior Member
    • Jul 2005
    • 764

    #1

    Reduction of Making Work Pay Credit for High Income

    I just realized that taxpayers with high income get LESS than the full potential $800
    joint or $400 single Making Work Pay Credit. Lines 5 through 8 calculate the allowable
    credit by subtracting 2% of the AGI which exceeds $150,000 on a joint return or
    $75,000 on a single return I had overlooked or forgotten this. This makes their tax
    even higher.
    Last edited by dyne; 02-13-2010, 03:29 PM. Reason: typo
  • dtlee
    Senior Member
    • Oct 2005
    • 807

    #2
    Originally posted by dyne
    I just realized that taxpayers with high income get LESS than the full potential $800
    joint or $400 single Making Work Pay Credit. Lines 5 through 8 calculate the allowable
    credit by subtracting 2% of the AGI which exceeds $150,000 or $75,000 single. I had
    overlooked or forgotten this. This makes their tax even higher.
    Would it help them to file separately if one makes enough to be phased out and the other doesn't?
    Doug

    Comment

    • geekgirldany
      Senior Member
      • Jul 2005
      • 2359

      #3
      Noticed the same thing on a single filing status client yesterday. He only gets about $27 of he credit. Made close to $100,000

      Comment

      Working...