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Byrd Says Economic Recovery Funds To Begin Flowing To West Virginia Families 

4/1/2009 

Washington, DC – United States Senator Robert C. Byrd, D-W.Va., today announced that up to 700,000 middle-class families across the State of West Virginia will soon begin seeing more money in their paychecks as a result of the passage of the American Reinvestment and Recovery Act (ARRA), which President Obama signed into law in February.

 
One of the key components of the legislation was “The Making Work Pay” tax credit, which is the major tax reduction centerpiece of the stimulus package.  The measure will impact approximately 700,000 families across the State of West Virginia and could return up to $300 million into the pocketbooks of those family members. West Virginia family members should have already begun or will soon begin seeing increases in their paychecks reflecting the new tax credit.  The Internal Revenue Service requested that all employers begin instituting the lower withholdings for their employees by April 1, 2009.  By reducing required withholding amounts, workers’ take-home pay is increased immediately.

 

“For those hard-working West Virginians who have been squeezed by rising costs and stagnating wages, this will provide some financial comfort to them by adding a little more to their paychecks each month,” said Byrd.  “This tax credit, coupled with the job-producing component of the ARRA, will hopefully begin to pull us out of this weakened economy and get us back on track.”

 

Specifics of the plan, as provided by the White House, include:

 

  • For 2009 and 2010, the “Making Work Pay” tax credit provides a refundable tax credit of 6.2 percent of earned income up to $400 for working individuals and $800 for married taxpayers. 
  • Families should see at least a $65 dollar per month increase in their take-home pay.
  • The credit will phase out for taxpayers with adjusted gross income in excess of $150,000 for married couples filing jointly and $75,000 for other workers, and thus is fully phased out for taxpayers with modified adjusted gross income in excess of $190,000 for married workers and $95,000 for other workers.

Byrd also announced that the federal government will begin sending out $250 in economic recovery payments to people who receive Social Security and Supplemental Security Income (SSI) benefits beginning in early May 2009 and continuing throughout the month.

According to information released from the White House, the ARRA provides a one-time payment of $250 to adult Social Security beneficiaries, and to SSI recipients, except those receiving Medicaid in care facilities.  To receive the payment, the individual must be eligible for Social Security or SSI during the months of November 2008, December 2008, or January 2009.

The legislation also provides for a one-time payment to Veterans Affairs (VA) and Railroad Retirement Board (RRB) beneficiaries.  The VA and RRB will be responsible for paying individuals under their respective programs.  However, if someone receives Social Security and SSI, VA, or RRB benefits, he or she will receive only one $250 payment.  People getting Social Security or SSI should not contact the Social Security Administration unless a payment is not received by June 4, 2009.

For more information on the one-time $250 economic recovery payment, an individual can go to www.socialsecurity.gov/payment.