• Education

  • Early Excellence
  • Denver Preschool Program
  • K-12 Education
  • The Charter Fund

• Economic Opportunity

  • Post-Secondary Education
  • Employment Skills
  • Asset Building

• Strengthening Communities

  • Support to Community Organizing
  • Social Networks

• Earned Income Tax Credit

  • American Recovery and Reinvestment Act of 2009
  • Tax Sites
  • The Piton Foundation's Tax Credits for Working Families Campaign
  • Tax Help Colorado
  • Low Income Taxpayer Help
  • 2009 Tax Year Promotional Materials
  • Filing Options Available
  • The Earned Income Tax Credit in Colorado
  • Learn More about the Earned Income Tax Credit
  • Employers: Help Your Workers Get Their Tax Credits
  • More Tax Credits
  • Non-Profits: Help Your Clients Get Their Tax Credits
  • Still Another Tax Benefit for Families! The Child and Dependent Care Credit
  • The Child Tax Credit: Extra Credit for Many Working Families!
  • Education Tax Credits for Families: The Hope Credit
  • Education Tax Credits for Families: The Lifetime Learning Credit
  • Saver's Tax Credit: Workers Can Save for Retirement and Reduce Income Taxes

Economic recovery and reinvestment act of 2009

Making Work Pay Tax Credit

Under the new economic recovery legislation signed by the President, most working people will get a $400 credit (single), or $800 credit (for joint filers). However, this credit begins to phase out between $75,000 and $95,000 for single filers and $150,000 and $170,000 for joint filers. What is different about this credit versus last year’s economic stimulus payment is that these workers will not receive a check from the IRS this time. Instead, it is expected that the credit will be distributed through a reduction in income tax withholdings from paychecks starting April 2009. On average, a single worker should receive an extra $15 per week during the last half of 2009. The weekly pay increase will fall to about $8.00 in 2010 as the credit is spread over the entire year. A valid Social Security Number is required to claim the credit, but in the case of married couples filing jointly, only one person needs a SSN. If someone is not working, or self-employed, they would receive the credit, if eligible, when they file their 2009 tax return.

Economic Recovery Payments

Recipients of Social Security, Supplemental Security Income (SSI), veterans’ benefits, and railroad retirement benefits will also receive a benefit from this legislation.  They will receive a one-time $250 payment ($500 for a couple). Recipients will automatically receive the payment, which is expected to happen before June 7. The check will come from the Social Security Administration in the form of a separate payment and will not be included in regular monthly benefit checks. If a person receives their regular payment by check, they will receive this payment by check; if they get their monthly benefit by direct deposit, that’s how the special payment will come.  If an individual receives more than one type of benefit, they will still only receive one $250 one-time payment. Unlike last year’s stimulus payment, recipients do not have to fill out a tax form or do anything to get the check. Also, federal and state retirees who don’t receive Social Security also will qualify for the payment, but may have to file a 2009 tax return to receive it.