April 1st was the deadline for the 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 worry about applying for the credit. This is because employers are supposed to automatically adjust the withholding. I saw this in my husband’s direct deposit. The information on the W-4 he filled out shows that we are entitled to an $800 tax credit, so it’s being parsed out in his pay. Not that it makes a huge difference. But that’s less paperwork for me.

Another thing to watch out for includes families in which both spouses work. Both employers may be withholding the total $800, and that could mean that you get the double the credit you should have. And that means you might owe at the end of the year. Check with your HR department to see how things are working out, and make the necessary adjustments.