04.01.09

Making Work Pay Tax Credit Takes Effect Today

WASHINGTON, April 1 – Senators Patrick Leahy and Bernie Sanders and Congressman Peter Welch announced Wednesday that the Making Work Pay tax credit created by the American Recovery and Reinvestment Act will take effect today.

More than 300,000 Vermont families will receive $100 million in tax cuts through the federal stimulus bill, which was signed into law in February.

Working Vermonters can expect to see an increase of at least $65 a month in their paychecks. The tax credit – one of the fastest and broadest in American history – applies to 95 percent of working families.

In 2009 and 2010, the Making Work Pay tax credit will provide a refundable tax credit of 6.2 percent of earned income up to $400 for individuals and up to $800 for married taxpayers. The full credit will be paid to those making $75,000 or less ($150,000 per couple) and a partial credit will be paid to those making under $95,000 ($190,000 per couple).  

Leahy said, “The Making Work Pay Tax Credit will provide some immediate relief to hard working Vermont families who are struggling with the high costs of groceries, housing and fuel.  Vermont’s delegation in Congress supported including these tax credits and others in the economic recovery act because they are fair, they are needed, and they can help right away in jump-starting the economy.” 

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