WASHINGTON — Most workers will start seeing about a $10 bump in their weekly paychecks this week, thanks to a new federal tax credit.
The “Making Work Pay” tax credit, which took effect Wednesday, was enacted as part of the economic-recovery package that Congress passed in February. It’s the Main Street version of the Wall Street bailout, doled out in bite-size portions to workers in their paychecks.
Unlike last year when the government tried to stimulate the economy by making 120 million rebate payments to taxpayers, this year’s version will be spread out over the rest of the year in workers’ paychecks. The goal is to get workers to spend the extra money to help jump-start the ailing economy.
The credit amounts to 6.2 percent of a worker’s earned income, up to $400 for the year. Married couples filing jointly are eligible for up to $800.
