Schedule M Form for your Tax Credit

Read, complete and include Schedule M with your 2009 tax return. If you qualify, you get a $400/$800 tax credit.

In 2009 and 2010, the Making Work Pay provision of the American Recovery and Reinvestment Act provided a refundable tax credit of up to $400 for working individuals and up to $800 for married taxpayers filing joint returns.

In 2009, many folks benefitted from this credit via reduced payroll tax withholding since spring 2009. But to lock in your credit — which reduces your 2009 taxes by $400 if you’re single or $800 if you’re married/filing jointly — you have to claim the credit on your 2009 tax return. You’ll need to use the new Schedule M to do this.

The credit is equal to 6.2 percent of your earned income, capped at $400 or $800. For single filers, it starts phasing out at $75,000 of adjusted gross income and isn’t available if AGI exceeds $95,000. The phase-out AGI for married couples is $150,000 to $190,000.

Access the Schedule M form from the IRS site.

Source: CBS News.