The new tax credit is being implemented this month through reduced payroll deductions. It’s equates to about $10 to $15 per person per paycheck. This tax credit will be worth $400 for individuals and $800 for joint filers. Most people should have seen a difference in their paychecks by now.
However, next year if you make more than $75,000 as an individual filer or $150,000 as joint filers you will start to be phased out of this credit. So it’s a good idea to make sure your payroll deduction is appropriate or you may wind up owing an extra $400 or $800 to Uncle Sam this time next year.