Schedule M is a form from IRS to figure the making work pay credit. This credit may give you a refund. Here we post Schedule M instructions for you.
Schedule M instructions:
- Make sure you have all the thing’s you’ll need: Form 1040 or 1040A, Schedule M, and Tax documents (W-2, W-4, etc.)
- Enter your name and Social Security number at the top of the form.
- Read the question on line 1a and check either "Yes" or "No." Check "No" if you have a net loss from a business, received a taxable scholarship or fellowship grant that does not have a supporting W-2 form, have wages from working as an inmate at a penal institution, received a pension, filed using Form 2555 or 2555-EZ or made less than $6,451 ($12,903, if married). Otherwise check "Yes."
- Enter $400 ($800, if joint filing) on line 4 if you checked "Yes" on 1a. If you checked "No," then enter your earned income on line 1a and nontaxable combat pay on 1b. Multiply 1a by 6.2 percent (0.062), and enter the value on line 2. Enter $400 on line 3, and write the smaller of lines 2 or 3 in line 4.
- Refer to line 38 on Form 1040 or line 22 on 1040A, and write the value on line 5.
-Enter the value $75,000 on line 6, or $150,000 if filing with a spouse.
- Compare the amount on line 6 to the amount on line 5. If line 6 is more than line 5, then check "No" and transfer the amount on line 4 onto line 9. If line 5 is more than line 6, then subtract line 6 from line 5 and enter the difference in line 7. Multiply line 7 by 2 percent (0.02) , then enter the value on line 8. Subtract the value on line 8 from the value on line 4, and enter it on line 9. If the value is less than zero, then enter "0."
- Check "No" and enter "0" on line 10 if you did not receive an economic recovery payment in 2010. If you did receive a payment, then enter the payment for you and your spouse on line 10. This value should not exceed $250 if single or $500 if married.
- Subtract the value of line 10 from the value of line 9. If the difference is less than zero, enter "0" on line 11; otherwise enter the value of the difference. Also enter this value on line 63 of the Form 1040 or line 40 of 1040A. This is the value of your Making Work Pay credit.
- Attach the Schedule M form to your Form 1040 or 1040A, then submit them with the rest of your tax documents.
As of January 2011, the Making Work Pay credit is generally $400 for single applicants and $800 for spousal joint applicants and is available to anyone who has received income from work, unless you are a pensioner or self-employed. Even if you do not owe any taxes, the credit is still available.
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