Stimulus Question: "MakingWork Pay" credit

Under the new legislation, I am entitled to a Making Work Pay Credit of $400 dollars ($800 for married) though I am baffled at how its being paid out. According to the IRS website, this credit will automatically start appearing in my checks this in the beginning of May :eek:. So will I just start seeing $400 dollars on my check this spring? What if I work two jobs or three, how does that work if one get seperate checks from different employers? :confused:.

I have no idea but I do have a suggestion. The US Government has setup a site called recovery.gov/

Why don’t you contact them via this site. From their FAQ:

I think what they are describing is a reduction in your withholding. In effect, this credit will look like a slight tax decrease, rather than a stand-alone rebate sent to you as a check. I think the amount of the credit depends on your income, so each company that pays you would reduce the withholding a small amount, based on how much they were paying you.

Not on your check, on your checks. I heard in the news that the average worker gets like 8 bucks a week.

Thanks guys. What a bizarre way to give a rebate but I expect nothing less from the government. :smiley:

The reasoning I’ve heard is that people largely saved the Bush rebate checks, or else spent them on debt, neither of which is what the government wanted. It wants the money spent so that it circulates to retailers and such. They determined that the reason people did that with the money is that they knew it was a one time shot, and they wouldn’t see any more. Therefore, the Obama administration has elected to time release the money so that people know there will be more to come every week. They believe people will more likely do something like buy an extra hamburger from a restaurant or some socks from Target. That’s the kind of spending they want to see, and multiplied by a hundred million each week or two, they believe it will help circulate money in the economy.