What is the work opportunity tax credit?
The “Making Work Pay Tax Credit” part of “the American Recovery and Reinvestment act of 2009” was only available for tax years 2009 and 2010 and was based on earned income. It was equal to 6.2 percent of a person’s earned income and provided a refundable tax credit of up to $400.00 per individual or up to $800.00 for taxpayers filing jointly.
Most workers received the benefit of the tax credit in larger paychecks, reflecting a reduced Federal Witholding Tax.
