Question by BeachLover985: So with this stimulus in 2009, what does "tax credit" mean? Are they taking 0 off of what I owe in taxes?
So I save $ 400 on my 2008 return that I'm filing in April 2009? What does tax credit mean?
Best answer:
Answer by melymo718
I believe it gonna come out of our withholding on our paychecks!! HUMM I THINK!!
Know better? Leave your own answer in the comments!
Q&A: What does Woody mean when he says "Batized on credit"?
First, it applies to your 2009 and 2010 taxes, to be filed in 2010 and 2011. It only applies to “earned income”. It is 6.2% of your earned income up to a max of $ 400 ($ 800 on a joint return). It will be given to you by adjusting the withholding tables. In effect they are giving you back the first $ 400 of your social security taxes. Too bad for me, but they aren’t going to let me claim that and get the $ 250 as a social security recipient too.