making work pay credit

[Trnr395]

I wanted to double check this credit. I have a married couple that the husband works and wife stays home and has no income. Computer is still calculating 800 for the making work pay credit and for the calculations on the worksheet it just asks whether or not the total wages for the household is above $12,903 regardless of who earned it. Doesn't make sense that the "making work pay" credit would also be given to somebody who doesn't work.

Thanks

Brad

[grandmabee]

as long as they make the 12,903 they get the full 800. spouse doesn't have to work

[Trnr395]

Great, thanks. I re-read the worksheet again and figured that was the case.

thanks again!

[Margaret CPA in OH]

Speaking of this credit, I have been alerting folks to the possibility that this will not be a permanent credit and suggesting that their planning include saving the 2% that the ss is not being withheld. I already have complaints about why their refund is less this year from those with higher incomes.

One overlooked an energy credit of $890 in 2009 that they didn't get in 2010. The other finished college and had almost no education expenses so no longer qualified for the $4981 in education credits received in 2009. And with an income $10,000 higher, no longer qualified for the saver credit. It's going to be a long season as has been noted elsewhere.

[Jack from Ohio]

Speaking of this credit, I have been alerting folks to the possibility that this will not be a permanent credit and suggesting that their planning include saving the 2% that the ss is not being withheld. I already have complaints about why their refund is less this year from those with higher incomes.

One overlooked an energy credit of $890 in 2009 that they didn't get in 2010. The other finished college and had almost no education expenses so no longer qualified for the $4981 in education credits received in 2009. And with an income $10,000 higher, no longer qualified for the saver credit. It's going to be a long season as has been noted elsewhere.

We need a vaccine for clueless.

[Crank]

Yes, it is going to be a long season!

I knew I was in trouble when the first 5 returns I did in 2011 were amendments to fix Turbo Tax users missed credits....back to TY 2007 too.

I have already gotten the "but I never had to pay before" comments. And then when you explain the tax difference between two years you just know that the "glossed over" look in their eyes means that they are hearing Blah, Blah, Blah and have no idea what you are saying. Then to top it all off they say, "and I have to pay you too?"

[Margaret CPA in OH]

What a great breakthrough that would be! I do appreciate the comparison feature in ATX, though. I just can't seem to get it out to the client fast enough. I guess what I should do is send that along with the email that responds to the breath holding question minutes after I receive their documents - "How much is my refund?"

I am so grateful for the majority of my clients who never ask because it really doesn't matter. And the tax planning takes care of it. It's just these early young folks who use IRS as their savings account and piggy bank. Sigh....