If you were a working taxpayer in 2010, you may be eligible for the Making Work Pay Tax Credit. This credit is based on the income you earned in 2010 and is claimed on your tax return when you file your 2011 taxes.

A great tax tip is to know the facts about the Making Work Pay Tax Credit to ensure you receive the entire amount for which you are entitled.

1. The Making Work Pay Credit provides a refundable tax credit of up to $400 for individuals and up to $800 for married taxpayers filing joint returns.
2. Most workers received the benefit of the Making Work Pay Credit through larger paychecks, reflecting reduced federal income tax withholding during 2010.
3. Taxpayers who file Form 1040 or 1040A will use Schedule M to figure the Making Work Pay Tax Credit. Completing Schedule M will help taxpayers determine whether they have already received the full credit in their paycheck or are due more money because of the credit.
4. Taxpayers who file Form 1040-EZ should use the worksheet for Line 8 on the back of the 1040-EZ to figure their Making Work Pay Credit.
5. You cannot take the credit if your modified adjusted gross income is $95,000 for individuals or $190,000 if married filing jointly or more, you can be claimed as a dependent on someone else return, you do not have a valid social security number or you are a nonresident alien.

Visit the IRS website for more information about the Making Work Pay Credit and other tax tips

Source: irs.gov