6. Making Work Pay Credit
This new credit provides workers with up to a $400 tax credit ($800 if married filing jointly). In 2009, taxpayers received the credit through a reduction in withheld taxes, or a reduction in estimated tax payments by the self-employed. The credit is 6.2 percent of income earned and phases out at modified adjusted gross income of $75,000 to $95,000 for singles ($150,000 to $190,000 for married people filing jointly).
However, spouses who were employed and had their withholdings adjusted could find that they are under-withheld for the year. Also, if you received a $250 Economic Recovery Payment in 2009, the Making Work Pay credit is reduced by that amount.
Those who should pay close attention to their withholding amounts include pensioners, married couples with two incomes, people with multiple jobs, those who are dependents, Social Security recipients who still work, and workers without valid Social Security numbers, according to the IRS.