Making Work Pay Tax Credit

[Alt+F4]

I know this isn't H&R Block but I hope someone can answer a general question regarding the "Making Pay Work" tax credit.

My understanding is that federal witholding tables were changed in 2009 to give workers a little bit more take home pay, eventually coming to $400 for individuals.

If workers already got the credit why is there a line on 2009 1040s to claim the credit on your return?

Thanks in advance.

[GodMark2]

When calculating the taxes that should be paid, the taxpayer still needs to calculate how much he should have paid in total, then subtract the $400 MPW credit. The withholding tables were changes so that this credit was spread out over the year, rather than sent as a lump sum refund after the taxpayer had filed the year-end forms.

The 1040 isn't how you pay taxes, it's how you show the government that the taxes you already paid throughout the year (based on the withholding tables) were the correct amount.

[Leftus]

The changes to the tax table works under the theory that you would have been working during the full time that credit was in effect. If you started in August you wouldn't have seen the full credit being applied. So you get what GodMark2 said and that the 1040 is just accounting for taxes paid and due.