| First of all, you won't be getting a check in the | | | | $600 in his or her withholding. So, a working |
| mail or through direct deposit. The Making Work | | | | couple will get $1200 in reduced withholding, but |
| Pay Tax Credit is appropriated through reduced | | | | only an $800 tax credit. This could, effectively, |
| withholding from your paycheck. The withholding | | | | take a $400 chunk out of their refund. |
| change is automatic, so you should not have to | | | | Since retirees don't have paychecks to plump up |
| do anything to get it. It's duration runs from April | | | | through withholding, they should look in the |
| 1, 2009 and results in a monthly savings of about | | | | mailbox. Retires who received Social Security, |
| $45 for single taxpayers and $65 for those who | | | | Railroad Retirement, or Veterans Administration |
| are married. | | | | Retirement benefits are entitled to a $250 |
| Most taxpayers will not have to pay back the | | | | payment. Eligible recipients will receive their |
| increased take home pay. Some people have | | | | payment in the same way they receive their |
| worried that a lower withholding might mean a | | | | benefits. Therefore, if your retirement benefits |
| smaller tax refund. Reduced withholding, for most | | | | are direct deposited into a checking account, your |
| taxpayers, reflects that they will owe less tax for | | | | $250 will be, as well. If your benefits are generally |
| 2009. In fact, the estimate is that the Making | | | | mailed to you in the form of a check, then your |
| Work Pay Tax Credit will reduce tax bills around | | | | $250 payment will be mailed to you as a check, |
| 6.25%, with a maximum of $400 for single filers | | | | as well. |
| and $800 for married couples filing jointly. | | | | Working retirees will have to return the $250 |
| It is true, however, that refunds might be | | | | dollars, since you will have gotten your Making |
| affected in some cases. In the case of a single | | | | Work Pay Tax Credit in your withholding, as part |
| taxpayer who gets just $380 in lowered | | | | of the work force. The Making Work Pay Tax |
| withholding, they will see their remaining $20 as | | | | Credit you claim when filing your 2009 income tax |
| part of a larger refund, while a married couple | | | | return will be deducted, dollar for dollar, for the |
| with two wage earners might actually see their | | | | $250 payment you receive as a Social Security, |
| refund reduced. The new withholding tables are | | | | Railroad Retirement, or Veterans Administration |
| designed to give a married worker a reduction of | | | | beneficiary. |