You may be able to take this credit if you have earned income from work. Even if your federal income tax withheld from your pay was reduced because of this credit, you must claim the credit on your return to benefit from it. You cannot qualify for this credit if you are a nonresident alien or can be claimed as a dependent on someone else's tax return.
The credit must be reduced if you received a $250 economic recovery payment during 2009. You may have received an economic recovery payment if you received social security benefits, supplemental security income (SSI), railroad retirement benefits, or veterans disability compensation or pension benefits.
Use the worksheet for line 8 on the back of Form 1040EZ to figure your making work pay credit.taxmap/instr/i1040ez-023.htm#TXMP36537c51
You (or your spouse if filing jointly) must have a valid social security number on your return to take the credit. A social security number does not include an identification number issued by the IRS.taxmap/instr/i1040ez-023.htm#TXMP1be60e25
Any refund you receive as a result of the credit will not be used to determine if you are eligible for the following programs, or how much you can receive from them. But if the refund you receive because of the credit is not spent within a certain period of time, it can count as an asset (or resource) and affect your eligibility.
- Temporary Assistance for Needy Families (TANF).
- Medicaid and SSI.
- Supplemental Nutrition Assistance Program (food stamps) and low-income housing.
Complete the worksheet and enter on line 1a the amount you figured using the worksheet if:
- You checked the
No box on line 1a,
- You have a taxable scholarship or fellowship grant not reported on Form W-2 that is included on Form 1040EZ line 1,
- You received amounts as a pension or annuity from a nonqualified deferred compensation plan or a nongovernmental section 457 plan that is included on Form 1040EZ, line 1, or
- You received pay for work done as an inmate in a penal institution that is included on Form 1040EZ, line 1.
Earned Income Worksheet—Line 1a
|1.||Enter the amount from line 1 of Form 1040EZ||1.|| |
|2.||Enter the amount of any taxable scholarship or fellowship grant not reported on a Form W-2 but included on|| || || || |
| ||line 1 above.||2.|| || || |
|3.||Enter any amount received as a pension or annuity from a deferred compensation plan or a nongovernmental section 457 plan (enter "DFC" and the amount received in the space to the left of line 1 on Form 1040EZ). This amount may be shown on your Form W-2 in box 11. If you received such an amount but box 11 is blank contact your employer for the amount|| || || || |
| ||received as a pension or annuity||3.|| || || |
|4.||Enter the amount received for work performed while an inmate in a penal institution (enter "PRI" and the amount received in the space to the left of line 1|| || || || |
| ||on Form 1040EZ)||4.|| || || |
|5.||Add lines 2 through 4||5.|| |
|6.||Subtract line 5 from line 1||6.|| |
|7.||Enter the amount of any nontaxable combat pay received. Also enter this amount on line 1b of the Worksheet for Line 8 (on the back of Form 1040EZ). This amount should be shown in box 12|| || |
| ||of your Form(s) W-2, with code Q.||7.|| |
|8.||Add lines 6 and 7. Enter the result here and on line 1a of the Worksheet for Line 8 (on the back of Form|| || |
| ||1040EZ||8.|| |
Enter on line 1b the total nontaxable combat pay you (and your spouse if filing jointly) received in 2009. This amount should be shown in Form W-2, box 12, with code Q.taxmap/instr/i1040ez-023.htm#TXMP42296c50
An economic recovery payment is a $250 payment sent to you by the U.S. Treasury during 2009 if you received one of the types of benefits listed on line 10 during November 2008, December 2008, or January 2009. If you file jointly and both you and your spouse received those benefits, you each may have received an economic recovery payment.