Via Yahoo Finance.
I’ve been blogging about the aspect of this if you are an overseas filer. But apparently back home the thing is enough of mess because people aren’t used to claiming a tax credit that works on the 1040 like you paid this money in. I think that’s what confuses people.
You fill out Schedule M. You put your (usually) $400 or $800 amount in Line 63, and you add that with your withholding or other payments.
Algebraically, it’s the same as if the Treasury told you your total tax, and then let you knock $400 (or $800 for couples) off. But most people are not thinking C minus B equals A is the same as A plus B equals C.
With:
A what you really have as a tax (tax figure after the credit)
B the Making Work Pay Credit (Schedule M)
C what your bill is before considering the credit
They should have set it up the usual way: C – B = A.
Hoofin 