Excerpt: I am responding to your inquiry dated April 7, 2009, on behalf of your constituent, --------------------------. ---------------, a retired public school teacher, has questions about the Making Work Pay Credit and the credit for certain government retirees. The American Recovery and Reinvestment Act of 2009 (the Act) provides that taxpayers with earned income in 2009 and 2010 may be eligible for the Making Work Pay Credit (section 1001 of the Act) in those years. The credit is the lesser of 6.2 percent of earned income or $400 for working individuals ($800 for married couples filing jointly). The credit begins phasing out for taxpayers with modified adjusted gross income over $75,000 per year for working individuals ($150,000 for married couples filing jointly).

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