Help me understand the Making Work Pay credit please

[Tickla]

I'm trying to do our taxes (3rd time now) and thought I had it all right, but then decided to try turbo tax free edition online because we have some changes that are new to us this year (son's college expenses), and on TT they give us $800 for the making work pay credit. I thought we already received this during the year when they took out less federal taxes each paycheck?? Why would we get an $800 credit on top of the extra $ in the paychecks? Oh, and I am a SAHM while my DH works 2 jobs, so how come it's saying we get the $800 instead of the $400-just because we file Married filing jointly even if only one had income? This is just so confusing!! I don't want to take the $800 credit if it's going to bite us back sometime because it was a mistake--please help

 

[Claire&TheBoys]

This thread has a good explanation:

http://www.disboards.com/showthread.php?t=2385968

Yes, you still get that $800 credit. It has to do with the tax tables not being adjusted to incorporate that $800 reduction.

I work for a CPA and do my taxes on the professional software we use, which I trust implicitly, and I got the credit.

 

[bettymae1121]

This thread has a good explanation:

http://www.disboards.com/showthread.php?t=2385968

Yes, you still get that $800 credit. It has to do with the tax tables not being adjusted to incorporate that $800 reduction.

I work for a CPA and do my taxes on the professional software we use, which I trust implicitly, and I got the credit.

Ditto, this is my understanding as well. The $800 "credit" is simply thrown in to make the math work. Cutting taxes is great, but why they had to make this so complicated at tax time is beyond me!

 

[Tickla]

Wow thanks-that really helped! I didn't realize there was another thread on this subject--sorry, just so overwhelmed over all this tax stuff! Your link finally made it "click" for me- thanks

 

[Tickla]

So now will the tax tables be adjusted this year (yes, I'm worrying about this for next years taxes, or will the same $400 or $800 credit apply on next years returns?

 

[okeydokey]

On the IRS website it said if you did not receive the 800 in your checks this past year you can claim it on your 2009 return.