$400 Tax Credit per Person – Schedule M

I’ve got good news and I’ve got bad news.

The good news: many tax payers can claim a $400/person or $800/couple tax credit.

The bad news: you have to fill out another tax form – Schedule M.

TaxGirl.com has some good articles on the subject. It’s a bit confusing.

This is one good reason to have a career in tax accounting – you’ll always have a job.

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About Tom Terrific

Interested in MANY things.

Posted on March 1, 2010, in Saving Money. Bookmark the permalink. 1 Comment.

  1. I mailed in my tax form, hadn’t had $800 reduced by my employer for withholding, hadn’t known of Schedule M, and was happily surprised by a letter from the IRS this week saying I had effectively had $800 more withdrawn than my W-2 form than it stated. I was expecting a refund and the IRS said it would be $800 more than I had calculated. Their calculation of my tax was the same as I had come up with, but the withheld amount was $800 more than I was aware, so I’ll be receiving the $800 credit.

    What is the status of my refund check? I don’t know because I hadn’t filed electronically and there is a security process involved which my computer doesn’t have the software for.

    The letter says though that for tax year 2010 I’ll need to fill out Schedule M myself. They’ll not automatically do it for me the next time. 2010 is also the last year the credit will be available.

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