- TO:
- ALL COUNTY OFFICES
- FROM:
- ALYSON CAMPBELL, DIRECTOR
- SUBJECT:
- MAKING WORK PAY TAX CREDIT
DISCUSSION:
On February 17, 2009, the President signed into law the American Recovery and Reinvestment Act of 2009 (ARRA). The ARRA created the Making Work Pay tax credit, which is a credit up to $800 for a married couple filing a joint return and $400 for other tax payers. This tax credit is designed to reduce tax withholding and give workers higher take-home pay. Taxpayers who did not have income taxes withheld by an employer during the year can receive the credit as a lump sum refundable credit when they file their 2009 income tax returns in 2010.
The Making Work Pay tax refund is excluded as income for all programs. If the EU receives a tax refund, enter in FAMIS as unearned income code “TC – EARNED INCOME TAX CREDITS”. FAMIS will exclude this income for each program.
The Making Work Pay tax refund is also excluded as a resource in the month of receipt and the following two months for all programs.
NECESSARY ACTION:
- Review this memorandum with appropriate staff.
NEY/CR