Utilizing the Making Work Pay Tax Credit as a Practitioner

Wednesday, April 15th, 2009

As part of my money management coaching sessions I am educating clients about how the Making Work Pay Tax Credit works and how they can utilize this extra money each month to reach specific financial goals. While providing this basic information, it is important not to step out of our field of expertise, so when mentioning this to clients, any specific questions should be directed to an employer or a tax professional.

Here is the basic overview I share with clients along with two links which provide more background information: The Making Work Pay Tax Credit is a provision of the American Recovery and Reinvestment Act of 2009 which is in effect through tax years 2009 and 2010. You may be eligible for this credit and it could be reflected as a new withholding on your next paycheck. An article released by CNN on March 31, 2009 stated, “Just how much extra cash you will see depends on your marital status, your salary and how many allowances — or exemptions — you normally take. As a rough guide, singles eligible for the credit might get between $10 to $15 per paycheck if paid weekly; for those married filing jointly; they’re likely to see an extra $15 to $20.” This will provide a refundable tax credit of up to $400 for working individuals and $800 for married taxpayers filing joint returns.

Talk to your employer to see if you are eligible and if this has been implemented at your place of employment. There are important details regarding this tax credit, for instance you may receive more than you are entitled to and would be required to pay it back. I encourage you to consult your local tax professional with any specific questions. Take a look at your paycheck to see how much extra you may be receiving and make that money work for you!

For detailed information see the following links:
IRS LINK http://www.irs.gov/newsroom/article/0,,id=204521,00.html
CNN MONEY ARTICLE LINK http://money.cnn.com/2009/03/31/pf/taxes/making_work_pay_credit/index.htm?postversion=2009033111

Kelli Jo Anthon, AFC
Financial Coach
Belvoir Federal Credit Union

Department of Defense Homeowners Assistance Program

Tuesday, April 7th, 2009

Recently, I began receiving information on the Department of Defense Homeowners Assistance Program. This DoD program originally was designed to assist DoD employees affected by a base realignment known as Defense Base Closure and Realignment Commission (BRAC). Due to the recent passage of the stimulus bill February 17th, 2009, two additional military groups were added. One was for wounded warriors and the other was for military members required to move due to a permanent change of station or PCS.

Does anyone have information beyond the application, information sheets on who is eligible, and where to send the application? I have three military members desiring to remain in the military and seriously thinking about getting out of the military as they do not know if/when they PCS, this program will aid their situation. They have watched other military members struggle with two homes and do not wish to do the same. Thank you in advance for any assistance on this new program.

CHRISTINA M. FORNANDER, AFC
Peterson AFB
Airman & Family Readiness Center