Schedule M (Form 1040): Not Applicable — Obsolete After 2010

Last reviewed: 2025-10-27

Use the Schedule M (Form 1040) — Placeholder Only (Making Work Pay Credit, Obsolete Post-2010) Tax Form Calculator Schedule M (Form 1040) — Placeholder Only (Making Work Pay Credit, Obsolete Post-2010) as a stand alone tax form calculator to quickly calculate specific amounts for your 2026 Schedule M state tax return. Alternatively, you can use one of our Combined Federal and State Tax Estimators to quickly calculate your salary, tax, and take-home pay.

Schedule M (Form 1040) is no longer used. It was created for the Making Work Pay Credit, a temporary credit available during the 2009 and 2010 tax years under the American Recovery and Reinvestment Act (ARRA). The schedule expired after 2010 and has not been reinstated.

1. Historical purpose: Schedule M allowed eligible taxpayers to claim a refundable credit of up to $400 ($800 for joint filers) for earned income in 2009 and 2010. Most taxpayers received it automatically through reduced payroll withholding.
2. When it applied: The credit covered wages, salaries, and self-employment income but excluded non-earned sources like pensions or unemployment. Non-resident aliens, dependents, and those without valid SSNs were ineligible.
3. End of program: Congress did not extend the credit beyond 2010. Beginning 2011, the 2% payroll tax cut temporarily replaced the benefit. Later stimulus programs used different mechanisms (for example, Recovery Rebate Credits on Form 1040 and Form 1040-SR).
4. Modern equivalents: Tax relief in 2020–2021 was delivered through Recovery Rebate Credits and Economic Impact Payments, not Schedule M.
5. Recordkeeping: You only need prior Schedule M copies if amending 2009 or 2010 returns; they have no effect on current filings.

About the Making Work Pay Credit: The credit equaled 6.2% of earned income, up to the $400/$800 limit, and was phased out for higher-income taxpayers (AGI over $75,000 single / $150,000 joint). It was refundable, meaning it could increase your refund or reduce your balance due.

Transition and replacement: The credit was replaced in 2011 by a 2% reduction in employee Social Security tax withholding, achieving a similar net paycheck benefit without an additional form. Later laws (2017 Tax Cuts and Jobs Act, 2020 CARES Act) provided different direct-credit mechanisms.

Impact on current returns: No entry is made for Schedule M. Any references you encounter in tax software or instructions refer only to archived tax years. For current refundable credits, review Earned Income Credit, Child Tax Credit, and Recovery Rebate Credit.

Tips for Historical Accuracy

If you are researching or amending old returns, ensure you use the correct 2009 or 2010 version of Form 1040 and Schedule M. Do not attach it to modern returns — the IRS will ignore or reject it.

Best Practices & Current Alternatives

To claim modern worker-based benefits, complete Form 1040 with applicable credits such as Earned Income Credit or Premium Tax Credit. If you expected a Schedule M credit in later years, verify that you instead received withholding or stimulus relief through the proper line items on Form 1040.

Schedule M remains part of tax history, illustrating how temporary stimulus provisions operate. It has no continuing role after 2010.

Important Notes

All calculations are estimates for guidance only. Always review your return and consider professional advice when submitting official filings.