Senator Dilan Announces New Tax Credit to Benefit Self-Employed

Freelancers can also take advantage of free assistance for online filing

Albany, N.Y.—Independent contractors, freelancers and self-employed individuals can now claim the Making Work Pay Tax Credit of up to $400, or $800 for those who file jointly.

“This tax credit will go a long way to help families afford added expenses, such as health care and retirement plans, that self-employed individuals pay for out of their own pockets,” said Senator Martin Malavé Dilan (D-Brooklyn).

Self-employed tax filers earning less than $75,000 in adjusted gross income, or $150,000 for joint filers, are eligible to claim this tax credit. First-time filers or those who have not submitted estimated taxes for tax year 2009 are still eligible for the credit.

To claim the tax credit, complete a Schedule M when you file your tax return. To read instructions about how to fill out the Schedule M or to download the form, please visit irs.gov. Information about the tax credit can also be found online via the Freelancers Union.

“As part of President Obama’s stimulus package, not only does this program offer the self-employed a larger tax refund, it also offers low- to middle-income families free tax preparation assistance,” said Senator Dilan.

Freelancers and self-employed individuals who earn less than $58,000 and have a valid e-mail address can take advantage of the free tax preparation assistance and electronic filing of tax returns. For more information about the program, please visit the upcoming events section of the Freelancers Union Web site.

If you have any questions about the tax credit or free filing program, please direct your questions to Althea Erickson, the associate director of advocacy and policy for the Freelancers Union at (718) 532-1512. You may also call Senator Dilan’s Brooklyn office at (718) 573-1726 for additional assistance.