INSTRUCTIONS: MAKING WORK PAY CREDIT SCHEDULE M
“Making Work Pay Credit Schedule M Step 1”
This form is not used for the government retiree credit anymore because the credit was only available for 2009. The credit applies if you have earned income from work, and the credit can be as high as $400 or $800 if filing jointly. The credit cannot be filed if:
· the amount entered on line 5 of Schedule M is $95,000 or more ($190,000 or more if filing jointly)
· you are a nonresident alien
· you are claimed as a dependant on someone else’s tax return
“Making Work Pay Credit Schedule M Step 2”
In order to take the credit, you need to provide your social security number on the return. Do not substitute your IRS-issued identification number.
“Making Work Pay Credit Schedule M Step 3”
To fill in line 1a, regard line 7 of Form 1040A or 1040. Self-employment does not apply to income. If you checked “No,” complete the worksheet on page M-2 of the following instructions: https://www.irs.gov/pub/irs-pdf/i1040sm.pdf
“Making Work Pay Credit Schedule M Step 4”
On line 1b, enter the total nontaxable combat pay your or your spouse received in 2010. This amount is shown in box 12 of Form W-2 with code Q.
“Making Work Pay Credit Schedule M Step 5”
If you’re filing Form 2555, 2555-EZ or 4563 (or excluding income from Puerto Rico), add the following amounts onto the figure on Form 1040, line 38:
· any exclusion of income from Puerto Rico, plus any amounts form the following
· Form 2555, lines 45 and 50
· Form 2555-EZ, line 18, and
· Form 4563, line 15
“Making Work Pay Credit Schedule M Step 6”
For line 10, an economic recovery payment is a $250 payment sent to your by the U.S. Treasury if you received social security benefits or any of the other benefits listed on line 10 during November or December of 2008 or January of 2009.
If you received an economic recovery benefit in 2010, DO NOT enter any economic recovery benefits received in 2009.
“Making Work Pay Credit Schedule M Step 7”
Do not complete the form on M-2 if claiming the additional child tax credit and you have already completed Form 8812.