Tax Problem

Tax Problem

SCHEDULE M (Form 1040A or 1040)
Department of the Treasury Internal Revenue Service (99)
Making Work Pay Credit
▶ Attach to Form 1040A or 1040. ▶ See separate instructions.
OMB No. 1545-0074
2010
Attachment Sequence No. 166
Name(s) shown on return
Your social security number
1
(e) You are filing Form 2555 or 2555-EZ.
a
Important: Check the “No” box on line 1a and see the instructions if:
Do you (and your spouse if filing jointly) have 2010 wages of more than $6,451 ($12,903 if married filing jointly)?
Yes. Skip lines 1a through 3. Enter $400 ($800 if married filing jointly) on line 4 and go to line 5.
No. Enter your earned income (see instructions) .......
1a
b
Nontaxable combat pay included on line 1a (see instructions) .........
1b
2
Multiply line 1a by 6.2% (.062) ..............
2
3
Enter $400 ($800 if married filing jointly) ...........
3
4
Enter the smaller of line 2 or line 3 (unless you checked “Yes” on line 1a) .........
4
5
Enter the amount from Form 1040, line 38*, or Form 1040A, line 22 ..
5
6
Enter $75,000 ($150,000 if married filing jointly) ........
6
7
Is the amount on line 5 more than the amount on line 6?
No.
Skip line 8. Enter the amount from line 4 on line 9 below.
Yes.
Subtract line 6 from line 5 ............
7
8
Multiply line 7 by 2% (.02) ........................
8
9
Subtract line 8 from line 4. If zero or less, enter -0- ................
10
Did you (or your spouse, if filing jointly) receive an economic recovery payment in 2010? You mayhave received this payment in 2010 if you did not receive an economic recovery payment in 2009 but you received social security benefits, supplemental security income, railroad retirement benefits, or veterans disability compensation or pension benefits in November 2008, December 2008, or January 2009 (see instructions).
No.
Enter -0- on line 10 and go to line 11.
Yes.
Enter the total of the payments you (and your spouse, if filing jointly) received in 2010....

View Full Essay