Make Work Pay Stimulus Tax Credit

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PaycheckI’ve been getting a lot of emails about what people are calling a 2009 stimulus check, passed by Congress and signed by President Obama last month. People are confused, wondering what the stimulus check is, if it’s a tax credit, who is eligible, etc. It’s a little confusing but I think I can put it all to rest.

Make Work Pay Tax Credit

The Make Work Pay Tax Credit was a law included in the new stimulus package called the American Recovery & Reinvestment Plan and called for a refundable tax credit to workers in 2009 and 2010.


  • Workers get a tax credit of 6.2% of their earned income, up to $400 for individuals and $800 for couples.
  • Nonresident aliens and individuals claimed as dependents are not eligible.
  • The credit phases out at 2% of income over $150,000 for couples and $75,000 for single filers, with the credit completely eliminated for couples earning more than $190,000 and singles earning more than $95,000.
  • The credit is reduced by any other payments associated with the stimulus package, such as the Social Security benefit of $250.

The credit will come by way of a reduction of paycheck withholdings, meaning your paycheck will be slightly larger than before. It won’t seem like a lot but it’ll be $400 or $800 (or less, based on your income) you didn’t have before! The Tax Policy Center has a little writeup about it, giving it a B+.

One thing to watch out for is how employers implement this. For single filers, you don’t have to worry because your employer knows your complete tax picture. For couples, you may want to work with your HR to determine the proper amounts. If you believe your combined income is in the phaseout region, or above it, be sure to tell your HR representative. If they give you the credit and you aren’t supposed to get it, you will owe taxes, and perhaps penalties, next year, warns MarketWatch.

That’s it! That’s the Make Work Pay Credit and what some people call the new stimulus check!

(Photo: oyf)

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115 Responses to “Make Work Pay Stimulus Tax Credit”

  1. Lindsey says:

    Okay, so i just filed my taxes with H&R Block at home and I need to know why they said myhusband and I are getting the $800.00 credit but my “Federal Refund” box up in the corner did not increase by $800.00. A friend of mine had his taxes done and said they sent him a separate check. Is this Correct? Should I expect a separate check for $800.00?

    • Rich says:

      When I did ours using Tax Act, I was required to file the new Schedule M, then it carried the $800 over to my 1040, line 63, added with any other payments such as withholding and used to offset taxes owed. Anything above what my taxes were was refunded, anything less and I would owe.

  2. Chang says:

    so does it mean we wont be getting a check from this? and it will just accumulate in our weekly salary? i was hoping that i can have an extra money out of this but im wrong. i already had my refund from federal and state and just waiting for the $800 but i wont be getting that right?.

  3. Jenn says:

    I’m still having a bit of trouble following… The money given to me through this so called ‘Stimulus” package was sent to me via my tax refund. They added an additional 343$ to my refund. Does this mean I’m going to have to pay this back at the end of the year?

    • Charles says:

      No you won’t have to repay it.

      The money added to peoples’s paychecks is simply an advance on the credit they will receive when they file their taxes.

      Whether the employer reduces the withholding
      or not you will still get the full credit when you take it on your tax return.

      People are confused and rightly so IMHO they think if they don’t get it from the employer they are coming up short when in fact they will have everything equalized when they file their returns and take the credit at that time by using schedule M if filing 1040 or 1040a or simply using the worksheet on 1040ez which does not require filing the schedule M.

  4. Anonymous says:

    I filed a month ago and have already received my refund check. Then got a letter from the IRS today saying I’m receiving an additional refund for the “Make Work Pay Tax Credit” I didn’t even know about this when I filed. I’ll enjoy the extra $400.00 First time in my life the IRS said “Hey we owe you!” lol

  5. Ampex One says:

    I am self employed, but, was partially employed in 2009. The company went out of business. Any benefit or advice to me?

  6. Charo says:

    I really dont understand how this Schedule M works. I did my income tax online and already received my refund but i didnt see the $400 in there. I asked the customer service about it but told me to refer it to line 63 in my form and that i already received it with the federal.
    When i was filing the income tax, in the upper right corner it says how much ill be getting for federal and proceed to check out and entered my bank info to where the refund to be deposited. What it says int the upper right corner is the only amount that i received so im wondering wheres the $400? The amount came out before the Schedule M form appeared. My friends got their $400 or $800 with their federal but whres mine? If it is really included in my refund, thats really impossible coz i know how much ill be getting w/o the 400 or 800.

  7. Julie says:

    IRS gave us an additional 800.00 added to our expected return, they then sent us a letter saying we qualified for this credit. I guess my husbands employer never took it out of his checks all year. Not sure how to check if they did or not, unless we ask um. Never noticed our check being more. We considered it a SCORE from the IRS and said ” This year we can finally give kudos to the IRS”, finally.

  8. Amy says:

    I am still confused about this making a work credit. Will I get another check as well as the federal one? I just got this letter and if you could please explain it better I’m appreciate it. Thank you for your time.

  9. ruth says:

    i see the schedule m on my tax papers, but online it says it is a return for retired people or the money is seen in the taxes that are taken out of your check….i just put zero on my tax return and hope that the person that cks my return will catch it if it is somrthing that i need to get….

  10. Johnny says:

    So I just filed taxes using HR Block @ Home.

    My wife and I qualified for Make Work Pay credit ($800) we made $1,000 more gross this year over last, only $300 more in AGI and had similar deductions. Our credits were exactly the same (except for this $800 credit…..)

    So my question is this- our total tax went up by $20!!! What gives? I understand that we got more $ during the year but why is our total tax going up instead of down?

    Please help me understand this!!! thanks!

    • Johnny says:

      I figured out my own answer after I printed out the tax return. I see that the Federal Tax I had withheld on my paychecks was 800 less than the taxes owed.

      Problem solved.

  11. Democrats Steal says:

    Stimulus? In fact, it is just another form of redistribution of wealth, since those making over $190,000 as a couple get nothing. Enjoy the money that the government stole from honest working people to give to you.

    Because we are retired but still have a low income from working part time, my wife and I received this money. Yet the chances are that our total assets are worth more than most young couples making $190,000 a year.

    This law stinks and I am ashamed to take the money. But the filthy Democrat leeches will steal it with glee, and as much more as they can manage to get.

    • Johnny says:

      Steal- nothing is perfect by any means! But I am SO tired of hearing how all the people who make over $190,000 a year are honest, hard working people. COME ON NOW….there are dishonest people in all walks of life…rich, poor, middle class. When someone makes a lot of money does it mean they are honest and hard working? Ha! I would argue that just as many, if not more, on the wealthy end are dishonest!! Both the greedy from the wealthier end as well as the lazy and overspending from the less-wealthy end are to blame for what trouble our economy is in now.

  12. Democrats Steal says:


    You said it yourself, “there are dishonest people in all walks of life.” The rich are no more dishonest than the poor. I have been very poor and a wouldn’t give a nickel for the morality of the poor.

    SOME of these people ARE honest. And, there is simply no moral justification for stealing from them – period. It is no more moral to steal from the rich than it is from the poor.

    You obviously suffer from the same kind of class hatred and class paranoia that is rampant among the lower class in this country. Hate anyone you perceive as having moe than you do. Demonize them. Justify stealing from them.

    Stealing a dollar from a rich person and giving it to a poor one does NOT increase the GDP. It does NOT stimulate the economy. In fact, it has exactly the opposite effect. It destroys the will to generate new wealth. Why should anyone bother to do that if it will simply be stolen from him?

  13. Democrat Getting A "Stimulus" Check says:

    An anecdote.

    Wife’s friend, Gina (not real name). Nurse. About $70K. About 60 yo.

    Husband started a business when they were young. Very profitable for a while. Ultimately business failed/sold. Damn capitalist pigs!

    Divorced/remarried. Party girl. Loved/loves to gamble on MO riverboats. Went through money like water. Second husband died of cancer. Large medical bills. No savings. Debt *despite good insurance*. Now lives in a small home. Getting old. Insufficient nest egg. Votes Democrat because she believes in redistribution of wealth.

    Summary: Loser spent her money, now wants yours. Just another example of a noble peasant.

  14. Mr. Sick of those who can't see the big picture says:

    An Anecdote.

    Overindulgent twit, George ( real name )

    Father begins undermining america through influence pedaling and furthering the deregulation that would lead to the implosion of the economy.

    Failed at EVERY SINGLE business venture he was ever involved in with the LONE exception of an oil business that was propped up by a certain someone who shall remain Bin Laden’s brother.

    Used fathers influence to become Governor and have a bunch of people mercilessly slaughtered in the name of Justice. Further rode his father’s coat tails into the oval office where he STOLE BILLIONS from EVERYONE to fund an illegal and unwanted military action ridiculously refered to as “war”.

    Then on his way out the door , made sure a certain gigantic Insurance corporation(coincidently enough run by the former director of the CIA , daddy’s old job) received BILLIONS in YOUR tax money to pay bonuses to executives.

    Summary: Thank GOD for your malevolent Leaders and captains of industry for taking all we have from us and using it so wisely towards our collective benefit !!! Just another example of a short-sited idiot blinded by hatred for the guy sitting in the same F*cking sinking ship as him. Get a clue you moron.

    • Democrat Getting A "Stimulus" Check says:

      Can’t see the big picture:

      You exhibit classic class paranoia.

      You are trying to justify stealing from honest couples making over $190,000 because of your paranoid delusions about one man.

      Tell me, do those delusions make you believe that ALL couples making over 190K are evil? Is that how you “justify” stealing – by spewing forth your sick class hatred generated by insanity?

      What the hell does Bush have to do in your warped psyche with stealing from successful people?

      • Johnny says:

        Bush paid for his (father’s) war taxing those $190,000+ families money as well as those of us who pay taxes but make half of the $190,000+ group.

        And I don’t believe anyone has said that “all couples making more than 190K are evil….I know most are not- just like most that make less than 39K are not evil. I know because I know hundreds of people who make less than 39K and they are not evil in any way, (well, maybe one is pretty evil- but that was a nasty parent in my school!)

        The big picture is that we are in the toilet and need to pay for things. There is plenty of waste that needs to be cleaned up, but if we don’t provide support to those in need then we are going to end up in a society with much larger issues than we have even now. We will have more crime, murder, theft, etc!!!

        • Democrat Getting A "Stimulus" Check says:

          The Iraq War has nothing whatsoever to do with socialist policies of wealth redistribution. Period. It is irrational to think as you do.

          The big picture is that socialist thinking got us into this economic mess and doubling down on socialist policies at this time is only digging the hole deeper. You are very, very wrong in thinking that redistribution of wealth will save this country, or yourself. You are very, very wrong in thinking that it will save the economy. It will only destroy it more completely.

          The whole mortgage mess was set in motion by socialists who wanted to redistribute wealth in the form of “affordable housing.” Have you read Thomas Sowell’s book? If you must wallow in your hatred for Bush, then focus on the fact that Bush did indeed try to continue the “affordable housing” policies started by Clinton’s HUD. Bush too had his socialist side – Mr. compassionate conservative. But Bush bears much less than 25% of the blame for this economic mess.

          Socialist policies got us into this mess, and now the terminally stupid believe they will get us out. Why don’t you just move to Cuba where you would be happy?

          • Johnny says:

            Socialist thinking in NO way got us into this economic mess. Greed of investors and executives got us into this mess. Wow, do you know anything about economics? Was my major in college…in your home state of MO!

            Come on, the mortgage mess was set up by the banks to take advantage of people who can’t afford something….”the people” didn’t set up the flexible rate mortgage…bankers did!

            And yes, the education system is messed up- big time. I agree with you there.

            BTW- I am not moving anyplace because diversity is what this country is all about….get over it….and hopefully you will stop calling those that are different from you rude names. Are we back in the 60’s again? Maybe you never left.

  15. AmorFati says:

    Mr. Sick,

    May I please take a moment to tell you how much your post about our previous idiot President COMPLETELY made my day? Sometimes, there’s really nothing quite as satisfying as putting some ignorant conservative in their place, no? 🙂

    For what it’s worth, I ventured over to this site after realizing RIGHT before I was about to mail out my tax returns that I was missing out on this extra $400 in my pocket! In addition, for your reading pleasure, my current Facebook status:

    Erin thinks anyone who has a problem with Obama can just go ahead and waive that $400 Making Work Pay credit on their Federal Tax Returns this year– all thanks to a new law included in the American Recovery & Reinvestment Plan aka THE STIMULUS BILL which our Prez signed into law last month! WOOOOOHOOO!!!!! The next local “Tea Party” rally I hear of, I’m gonna show up and ask every single person who has a sign complaining they’ve HAD ENOUGH ALREADY and that Obama is a Socialist/Fascist/Communist (the logic, oy..) how they’re likin’ that awful, terrible “redistribution of wealth” the President is FORCING right into their bank accounts….. friggin’ hypocrites 😉


    • Democrat Getting A "Stimulus" Check says:


      I have decided to give my “stimulus” check to my local “tea party” group. Best use of the money.

      And Democrats complain about “greed”!!! You aren’t greedy, are you? You should spend that money as a down payment on an item you can’t possibly afford.

  16. Johnny says:

    democrats should spend the money for an item you can’t possibly afford? Come one- what a generalization. My wife and I are hard workers, never overspend, are educators, never run a credit card balance, don’t take any social services….and are Democrats.

    I work in a rural elementary school which only has 50 students. Just in the last 6 days four students parents lost their jobs……they are all hard workers, are not drug dealers, don’t squander money (for the most part) and have just been unlucky or born into unlucky situations. I don’t mind having my taxes go to help them when they are in need.

    Any conservative who takes heath insurance is a part of a program to redistribute wealth. Not just a government run health care system, but any PRIVATE health care system!!! I for one don’t cost my healthcare company much money at all. I see the doctor on occasion for a few sinus infections a year, never had surgery, never even been admitted to the hospital- and yet I still have to pay just as much as the person who has millions of dollars in bills due to their many health concerns. I am ok with this because I know if I ever have millions of dollars in bills I will need the insurance. As far as taxes go- if I had millions of dollars I would have no problem sharing more than 30% of that wealth with others- I would still be rewarded fairly for my hard work! I bet there are thousands if not millions of formerly “rich” people who are now enjoying their $800! Those people who lost their businesses in the downturn, the market crashed in their local housing market, etc.

    My wife met with President Obama for a 2 hour meeting before he was president on families in rural America. He is an honorable man who (I don’t always agree with) but is doing his best for America which is in need of a BIG REALITY CHECK.

    And if those people who complain about the President would actually do more than read the headlines on Drudge or listen to Rush, then we might not all be portrayed as hating what is happening in the US! Case in point- my nieces boyfriend is in college and simply does the reading of headlines. For example- He posted on Facebook how the healthcare bill was horrible and provided “evidence” of how the gov’t had access to our private checking accounts (which is incorrect!) Anyway, I refuted his “source” with some non-partisan groups who have researched it fully and posted the link to the Facebook page. He read the headline and thought my article supported his argument. He NEVER read the evidence which discredited his entire source! People need to wake up and pay attention to what is really happening in this country. Not that everything is great, but at least our former “president” is no longer stealing from me to support a unnecessary war to try and finish his father’s unfinished business!!! 😉

    • Johnny says:

      In response to someone’s question about what Bush has to do with this discussion- Bush paid for his (father’s) war taxing those $190,000+ families money as well as those of us who pay taxes but make half of the $190,000+ group.

    • Democrat Getting A "Stimulus" Check says:

      Educators? What a joke. Read Thomas Sowell’s other book, Intellectuals and Society. It is an indictment of the intelligentsia in this country, “the best and the brightest.” Democrat/liberal/progressive/socialist teachers have done more to f/u this country than any other group. The whole country would be better off if every liberal teacher were deported. BTW, just for the record, I have also taught, at 2 and 4 year colleges in the St. Louis area. I have a doctoral degree. I therefore saw first hand the problems with the educational system in this country.

      Helping those who are losing their jobs means growing the economy and creating more jobs. Lowering taxes and promoting capitalism in the form of small businesses would do that, not threatening to nationalize every industry in the country, and not redistributing wealth by forcifully taking from small businesses to give to “the poor.”

      You admit that you are not “poor.” You tell me in effect that you don’t need the money. Then why are you taking it? You rail against “greed” but you have no mirror to see yourself.

      Have you perhaps noticed that in Obama’s 15 months unemployment grew by almost 2%? I say unbashedly that Obama is a radical socialist, wannabe communist dictator. And you are most likely what has been called a “useful idiot.”

      • Johnny says:

        Unemployment slowed considerably since Obama took office!!!

        The seasonally adjusted unemployment rate rose from 4.2% in Jan 2001, to a high in January 2009, Bush’s last month in office, where the unemployment rate rose to 7.6 percent, the highest level in more than 15 years.

        Bush had the worst jobs record since Hoover — In percentage terms, average annual job growth during his Administration was the lowest of any administration since Herbert Hoover.

        • Democrat Getting A "Stimulus" Check says:

          LOL You want to talk about jobs record? The unemployment rate would now be 2 points lower if businesses/capitalists were not afraid of the radical socialists/communists in the evil office and the congress.

          This nonsense of attributing everything that happens during a president’s term exclusively to him, is something that you socialists use when it is convenient for you. Of course, when it is NOT convenient, like now, you blame what is happening on a previous president. Obama has been in power for 15 months. The economy has only gotten worse. AND he has a Democrat congress. But one does not attribute that to him. Oh no, that is Bush’s legacy. And what about the extraordinary deficits that Obama has insured will materialize on the watch of other presidents? Well, those you will blame on any Republican president who inherits them.

          The truth is that the legislative branch has as much or more to do with what happens in this country as the president. Democrats controlled congress for much of Bush’s presidency.

          Thomas Sowell is an economist, and a much better one than you. In his book concerning the mortgage mess, The Housing Boom and Bust, he blames the mortgage crisis on government policies. Government socialized loan risk while allowing pseudo-capitalists to profit. More like corporatism than real capitalism. In a free market economy where lenders knew they were assuming the risk, the types of loans that are being defaulted on today would never have been made. Stupid socialist policies caused the economic crisis. Period.

    • Dale says:

      Thanks for your thoughts. I was just about to lose hope there was still somebody out there that understands some of the big picture. In the land of politicts where yes means no and no means yes it is very hard to understand the big picture. I feel privileged to pay my taxes in this great country ,no matter who is in washington at the moment.

  17. Democrat Getting A "Stimulus" Check says:

    Notice that PRIVATE healthcare insurance is (was) something which an individual could CHOOSE to have – or not. Even if one gets such healthcare insurance through a job, one is/was free to change jobs. If redistribution of wealth occurs in such a private healthcare system it is VOLUNTARY. That is quite unlike a forced government mandate to be involved.

    Redistribution of wealth does indeed occur all the time and in many ways. But it is generally understood by intelligent people that the shortened phrase, “redistribution of wealth” is meant to refer to a particular type of FORCED wealth redistribution. Perhaps Democrats are too stupid to know the difference.

  18. Democrat Getting A "Stimulus" Check says:

    Quote from Johnny, the brilliant teacher:

    “In response to someone’s question about what Bush has to do with this discussion- Bush paid for his (father’s) war taxing those $190,000+ families money as well as those of us who pay taxes but make half of the $190,000+ group.”

    This is a modern “educator’s” idea of critical thinking. Let’s analyze it. Here is what he would like one to believe:

    Bush unfairly taxed people making more than 190K.
    Bush unfairly taxed people making less than 190K.
    This has a bearing on the current forced redistribution of wealth. Perhaps it even justifies taxing those making more than 190K and giving their money to those making less.

    Obviously this is a valid proposition employing completely sound logic. This brilliant teacher is eminently qualified to teach “critical thinking” skills. No doubt. Oh………., and frogs fly.

    • Johnny says:

      Wow, I don’t even know where to start. I thought I would only hear the name calling in my second grade classroom. This thread is a complete waste of my time- and offensive.

      ‘Democrat Getting a Stimulus Check” You do very little here except call people who are unlike you rude names…..I think you need to take a long look in the mirror and find some maturity- clearly you need some help with that.

      I was hoping to have a CIVIL discussion among adults (I assume you are) about financial issues, but it seems I have stumbled upon a second grade level discussion where name calling is the main theme!

      Good bye!

      • Democrat Getting A "Stimulus" Check says:

        Johnny’s Feelings Are Hurt!

        Poor Johnny. I have been rude to him by denigrating socialists. He takes it personally. All paranoid personalities do this.

        But Johnny is a good man. And he hates greedy people. He and his wife make more than enough money. So they are going to give their $800 to the families of the children in their community who are out of work. Every good Democrat with a secure job is going to do this. THEY aren’t greedy people. You and your wife ARE going to do that, aren’t you?

        Please tune in tommorrow for our next fairy tale.

        • Johnny says:

          I would also agree with you that the economy has gotten worse in many areas since Obama took office. (wow- how civil of me!) HOW COULD the economy NOT get worse- the economy is screwed up right now and will continue to be crap for many months to come. There have been many indicators showing that the destruction that the previous 16 years of “leadership” is starting to slow down (yes, I included both R and D presidencies- how civil of me.)

          This is not something ANYONE could or should (except you and your friends) expect to be turned around in 15 months!

          by the way- no feelings hurt here because I could care less about you and your childish ways of having a discussion. I wouldn’t advertise who you got your Doctorate from- they might not like the bad press! (not very civil of me I guess)

          • Democrat Getting A "Stimulus" Check says:

            But you didn’t answer the question, Comrade Civil One. Are you, the ultimate moral icon, and are all your just-too-good-for-their-britches socialist friends, going to redistribute your OWN wealth? Are you going to give your $400 to the poor? Is your wife going to give her $400 to the poor? Or do you only favor wealth redistribution when you are the parasite who gets the money?

            Remember the words you live by, Comrade: From each according to his ability, to each according to his need.

  19. Democrat Getting A "Stimulus" Check says:

    Liberals should read this from a recovered leftist and practicing psychiatrist. Perhaps there is hope for all you “useful idiots” yet.

  20. Mandatory Drug Testing to Vote says:

    Just so you have this straight. This tax credit is part of the Economic Stimulus and Recovery Act of 2009, the one where Barack Obama borrowed $800 BILLION from China… so you can have a $400 break on you taxes… ONE TIME.

    So buy an extra 12-pack and bag of herb tonight with your $400. If he keeps you drunk and stoned, he can keep making you think he cares.

  21. Democrat Getting A "Stimulus" Check says:

    Johnny the Genius, child propagandist and civil socialist extraordinaire, says:

    We are going to steal from honest people and take the money for ourselves. You won’t stop us. As Obama said, the time for debate is over. You will do as you’re told.

    Oh, and can’t you please take it up the a__ civilly?

  22. Democrat Getting A "Stimulus" Check says:

    I forgot. I also want to thank the Civil Socialist, on behalf of the roughly 60% of voters who want the healthcare bill repealed, for the ever so ‘civil’ way you Bolsheviks shoved that law down everyone’s throat.

    And I have a civil question. Have you always been this delusional?

  23. Democrat Getting A "Stimulus" Check says:

    I take it I am being censored, since my last two comments have not appeared. Oh, well. No one expects to have free speech much longer in this country anyway.

    • Johnny says:

      I have noticed all your comments- they don’t always appear at the bottom of the thread- they are interspersed depending on what you reply to.

      As far as your “question” Yes, we are contributing the money in several ways. We actually contribute quite a bit of money to various charities, good causes, all the time. Also, I don’t use herb ( but I enjoy a good dark beer once and a while)- sorry to disappoint and not be your “ideal civil socialist extraordinaire”

      • Democrat Getting A "Stimulus" Check says:

        No. Two specific comments, one concerning the “civil” assault on two GOP activists, and one concerning the “civil” tea party crashers, have not appeared.

        I am giving the $800 to tea party activists, to CWA, and to MoRTL. I assume that all good little socialists who don’t “need” the money will be giving it to those who they feel have such “need.”

        Forced redistribution of wealth is a form of stealing based on covetousness or greed.

  24. Bill says:

    This is the silliest idea for a stimulus yet. I just got done doing my sister’s taxes. Last year she got back about $1,000 fed. This year she would have gotten about $600 except the Making Work Pay Stimulus Credit gave her $400 raising it to $1,000 again. They came up with this money by changing her tax with-holding throughout the year so that she ended up having $400 less with-held from her pay. If they would have just left things alone she would have gotten the same $400 anyway. Either way she gets $1,000 back on her federal taxes. Where’s the stimulus in that? It’s just goofy.

  25. cheryl says:

    This Making Work Pay Credit is a joke. I called the IRS and spoke to 100474103 and she told me that what I put on my 2009 tax return and got in 2010 –$372.71 was added to my refund check and should be claimed against the $400 credit in 2010. So it’s $400 for 2009 and 2010. So basically, I have to pay back the $5 per week they added to my pay check each week.

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