Are there tax cuts for individuals in the stimulus package?
Yes. The federal economic recovery plan includes several provisions that will lower taxes for many Wisconsin individuals and families. These tax cuts, deductions, and credits will save Wisconsin taxpayers an estimated $4.6 billion over the next three years (2009-2011). Making Work Pay Credit: $2.3 billion in savings for Wisconsin taxpayers For 2009 and 2010, this new credit is worth up to $400 to individuals and up to $800 for married couples filing jointly. The credit is refundable, which means the credit is available even to those who have no tax liability. The credit is reduced for taxpayers with adjusted gross incomes exceeding $75,000 ($150,000 for married couples filing jointly.) The Making Work Pay tax credit will primarily be distributed through reduced withholding on wages. Taxpayers who do not receive the full benefit through reduced withholding can claim the remaining credit on their annual tax return. In Wisconsin, we expect the average Making Work Pay tax credit to be $506
