MADISON – Governor Jim Doyle today announced that Wisconsin taxpayers will benefit from $2.3 billion in tax relief over the next two years through the Making Work Pay Credit enacted as part of the American Recovery and Reinvestment Act. The credit, which will average $506 for Wisconsin workers, will be primarily distributed through paychecks starting in April.
“President Obama knows our hardworking families are facing difficult times,” Governor Doyle said. “The Making Work Pay Credit cuts taxes for millions of workers in the state and will provide a much needed financial boost to Wisconsin families.”
Eligible workers will benefit from this credit without any action on their part. For people who receive a paycheck and are subject to withholding tax, the credit will typically be handled by their employers through automated withholding changes this spring. These changes will result in increased take home pay for most workers.
The credit is refundable, which makes it available even to those who have no tax liability, such as low income workers. It is worth up to $400 for individuals and $800 for married couples, and is phased out starting for incomes exceeding $75,000. The provision does not impact a taxpayer’s Wisconsin income tax liability.
The Making Work Pay Credit is part of a total $5.2 billion in tax savings for Wisconsin families and businesses over the next three years included in the federal recovery plan.
