For 2009 and 2010, this is a refundable tax credit up to $400 for working individuals and up to $800 for married taxpayers.
This credit will phase out for taxpayers with modified adjusted gross income in excess of $75,000, or $150,000 for married couples filing jointly.
For people who receive a paycheck and are subject to withholding, the credit will typically be handled by their employers through automated withholding changes.
Taxpayers who do not have taxes withheld by an employer during the year can also claim the credit.
WARNING: An employee with multiple jobs or a married couple whose combined income places it in a higher tax bracket may owe taxes as a result of this credit being applied by more than one employer.