Making Work Pay Credit

[Sharon]

My daughter earned $1759.00 last summer, she also earned $2.00 interest income on her savings account. When she filled out her W form when she started her job I had her write in "exempt", so no taxes were withheld.

Tonight we were working on the form 1040EZ and it came up that she qualified for a credit of $109.00 for making work pay. Because of this credit she would then be getting a refund of $109.00.

Does this make sense?

[Deleted]

Is she a dependent of yours?

[Sharon]

Yes. She is in high school.

[commentator]

Apr 4, 2011 20:47:14 GMT -5 Sharon said:

My daughter earned $1759.00 last summer, she also earned $2.00 interest income on her savings account. When she filled out her W form when she started her job I had her write in "exempt", so no taxes were withheld.

Tonight we were working on the form 1040EZ and it came up that she qualified for a credit of $109.00 for making work pay. Because of this credit she would then be getting a refund of $109.00.

Does this make sense?

No. People who can be claimed as a dependent do not qualify for the Making Work Pay credit.

[Sharon]

Thank you. It did not make sense that she would qualify for this.

[henryclay]

You want to make sure she marks on her return that she is not claiming her own exemptioon. When the IRS gets a tax return with a social security number on it claiming their exemption it will cause problems if that same social security number is on another tax return that also claims it's exemption.

[mwcpa]

follow henry's advise.... be sure she does not claim herself and her own dependent, it will cause you havoc when you file your return claiming her as you dependent.