Complete Schedule M if you received Making Work Pay credit
Tax day has come and taxpayers wonder exactly what Schedule M is and whether or not they have to fill it out for their tax return. It has to do with the Making Work Pay tax credit, where individuals who qualify receive $ 400 and couples who qualify receive $ 800. So that people could get that cash as soon as possible, payroll withholding tables were adjusted to reduce the amount of federal taxes taken out of paychecks, says MSN MoneyCentral. Unfortunately, the few extra dollars per paycheck was so small (not quite very same day loans) that many workers didn't notice. Extra spending to stimulate the economy didn't happen as politicians hoped, and there also some confusion regarding Schedule M as it relates to the Making Work Pay stimulus (See NY Times source).
Taxpayers do not know if Schedule M is something they have to complete or not
This is very essential, says MoneyCentral: If you received the Making Work Pay tax credit, you need to fill out Schedule M. Basically, the Making Work Pay tax credit isn't really credited to you until you claim it on your return. This is something more than 4 million 2009 tax filers so far have gotten wrong, according to the IRS. They're fixing the mistake, which will slow down the overall process of reviewing returns. This in turn means that it will take longer for individuals to receive their refunds.
The place Schedule M goes on your tax return
Look at page 2 of your 1040 form. If you look within the “payments” section which is pages 61-71, the credit will go on line 63. It is about the same place on the 1040A form. On the 1040-EZ, you figure Schedule M on the back of the form, using the worksheet. Filers calculate the Making Work Pay tax credit amount on Schedule M and transfer the result to line 63, says MoneyCentral. It isn’t like pay day loans, but is a welcome sight to employed American taxpayers that need just a little relief during the recession.
NY Times http://www.nytimes.com/2010/04/10/your-money/taxes/10tax.html?scp=1&sq=m... work pay credit&st=Search