That $400 (single), $800 (joint) tax credit promised in the recent economic stimulus package is about ready to start appearing. This tax credit will be spread out over 9 months, so it won’t be a huge improvement. But it is something. If you work for someone else, you will automatically see an adjustment. You won’t have to do anything — not even submit a new W-4. Your employer should adjust your withholding.
What to do if you are self-employed
If you have a home business, the story changes. You have two options:
1. Have your estimated taxes amount adjusted. You can learn how to do this by looking at IRS Publication 15-T.
2. Wait and claim it as a credit on your taxes next year. You can simply wait and claim it next year on your taxes. This is what I will do, since I’m already on track to make more this year, and without the credit my estimated tax payments are not likely to be sufficient.
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[...] Making Work Pay credit to start being applied. For those of us with a home business, it might mean waiting until the end of the year to claim this credit (unless you want to adjust your withholdings). However, if you have a spouse, you may not need to [...]
Posted by: WorkShak » Does Your Spouse Work? You Should Be Seeing an Increase in Take Home Pay | April 2nd, 2009 12:24 pm |
[...] you are self-employed, you have two options for claiming your Making Work Pay tax credit: You can adjust the amount you pay for your estimated taxes quarterly, using IRS Publication 15-T; [...]
Posted by: Making Work Pay: Check Your Withholding : Bizzia - News, information and opinions about the world of business from inside the blogosphere. | April 12th, 2009 6:46 am |