Schedule M - did you file for your $400 tax credit? ($800 for working couples)

[underpants]

IRS: Thousands forgetting to take $400 credit
http://www.katu.com/news/88839622.html

PORTLAND, Ore. – An Internal Revenue Service source says thousands of people are missing out on cash by failing to take advantage of one simple credit available this year.

They're missing the 2009 "Making Work Pay" tax credit. Overlook the credit, and you could end up owing more than you need to – or you could lose out on a refund.

With the credit, almost everyone who paid payroll taxes in 2009 gets an extra $400 credit on their 2009 return - the one due April 15. The credit doubles for couples who both work. (Note that those with especially high incomes in 2009 may not qualify for the rebate.)

It's $400 you would have to pay back to the federal government – after the government granted a temporary economy-boosting reprieve on employee taxes. With one simple form, the $400 can stay in your pocket.

To apply, all you have to do is file a "Schedule M" with your 2009 federal taxes.


What to do if you didn't file a Schedule M
http://weblogs.baltimoresun.com/business/consuminginterests/blog/2010/03/schedule_m_making_work_pay_cre.html

Never fear, says IRS spokesman Jim Dupree ...

... there's no need to file an amended return. Taxpayers will get the credit if they qualify, even if they don't file a Schedule M:

If the taxpayer was eligible for the credit, she needn't worry, as it is not necessary in this situation to file an amended return. The IRS is making sure that taxpayers receive the credit when they are entitled, even if they fail to claim it on their return. Our programming calculates the credit due, our examiners validate the credit and we send a notice informing the taxpayer that we have made the correction to their return.

[chill_wind]

1. K & R. n/t

[csziggy]

2. Yep, it's in there!

But since Mr. csziggy's earned income was not very high, we don't get the full $800, only $551. :(

[northernlights]

3. same with me...

I'm working part time, in school part time, so didn't get the full $400 either.

[underpants]

7. Politically people will love this

especiallly IF they find out it is part of the stimulus bill

notice how little attention has been paid to it by the MSM. They don't like making the connection of what Obama is doing for the middle class (schedule M, payroll tax cut, small business tax cuts, student loan revamping, credit card rules, and Cash for Clunkers which was aimed at and taken advantage by the middle class)

[Chemisse]

4. This is incredibly good news! Thanks nt

[SoCalDem]

5. Turbo Tax did it automatically for us.. Drove me crazy at first

I was sure I had screwed up somehow :)

But $800 for my kitchen remodel is greatly appreciated..:) 15 gauge stainless sinks are pricey :)

[underpants]

6. Yeah I was told by a co-worker that Turbo Tax asked really odd questions

or at least wasn't clear about the purpose of the line of questions.

[phusion]

8. I don't think I received this credit...

What should I do? I've already filed. Will the IRS just be sending me some money at some point?

Edit: According to https://sa2.www4.irs.gov/irfof-mwp/start.do I did not receive the credit.

[W_HAMILTON]

11. You may need to file an amended return.

I don't believe they are that difficult to fill out. Someone else may have more advice for you.

[uncle ray]

12. the linked article says you will get it when you are due.

whatever that means.

my girlfriend missed it, i looked her return over and missed it as well until i did my own and caught it. i wouldn't wait on them to mail the check without being alerted to the mistake.

[underpants]

14. 1040X amended return-there is a link at the link

:hi:

[ChicagoSuz219]

9. Is this different from EITC? n/t

[W_HAMILTON]

10. Yes.

They are two different credits.

[ChicagoSuz219]

13. And you can apply for both?

Or, is it an either/or thing...

[W_HAMILTON]

16. You can be eligible for both.

They are not either/or credits. You can get both. The Schedule M credit is a new tax provision, put in as part of the economic recovery, I believe.

[ChicagoSuz219]

18. Awesome! Thanks for the info!! n/t

[teamster633]

15. When I did my first run at taxes this year I almost fell out of my chair.

We had gone from getting a modest refund last year to owing over $900 this year. It turns out that this was because for us, as for many people, our withholding was reduced due to the stimulus package, but you have to file Schedule M to take advantage of the tax cut. I wouldn't even have heard of it if it weren't for my brother-in-law bringing it to my attention. You would think that this would be more widely advertised. For those who are taking the Standard Deduction, you can also increase the amount of that deduction to reflect property taxes by filing Schedule L. Our union sent us that tip a few months ago. Only 12 days to go...

[Lydia Leftcoast]

17. I wouldn't have known about it except that I had to go talk to the IRS last week

The agent I was dealing with told me that I was eligible.