You may begin noticing more money in your paychecks this week.  That's because the Making Work Pay tax credit -- one of the fastest and broadest tax cuts in American history -- went into effect on April 1. Most families should see at least a $65 dollar per month increase in their take-home pay.

In all, almost three million Virginia families will receive a combined $1.5 billion dollars to help families who are being squeezed by rising costs during the economic downturn.

Senator Warner said: 

"This modest increase in take-home pay should help trigger some immediate but much-needed economic activity in communities across the Commonwealth.

"By reducing required withholding amounts, workers’ take home pay is increased immediately, and the typical American family will have about $800 extra cash over the next year delivered to them in their paychecks to spend and to help the economy get back on track."   

The two-year "Making Work Pay" Tax Credit provides an extra 6.2 percent of earned income to paychecks up to $400 for working individuals and $800 for married taxpayers.  The credit phases-out for taxpayers with adjusted gross incomes more than $150,000 for married couples and $75,000 for other workers, and completely phases-out for taxpayers with modified adjusted gross income in excess of $190,000 for married workers and $95,000 for other workers.