Workers will see an increase in their take-home pay beginning April 1.
"During these difficult economic times, Pennsylvania's middle-class families are struggling simply to buy groceries for dinner and to pay the utility bills," Congresswoman Kathy Dahlkemper, D-Third, said in a press release Tuesday.
The pay increase is a component of the American Recovery and Reinvestment Act (ARRA) of 2009, with individuals earning less than $95,000 a year having less federal taxes withheld from their paychecks.
According to Dahlkemper, "The Recovery Act combines middle-class tax relief and strategic investment to stimulate the economy and create good-paying jobs right here at home."
The Making Work Pay provision of the ARRA provides a refundable tax credit of up to $400 for working individuals and $800 for married taxpayers filing joint returns in 2010.
For workers who receive a paycheck and are subject to withholding, the credit will typically be handled by their employers through automated withholding changes made by April 1.
If an employee is eligible for the maximum amount of tax credit, and the employer begins using the revised tax tables starting April 1, the employee can expect to bring home an additional $44 each month as a single filer and $89 as joint filers.
Additional tax relief provisions in ARRA include first-time homebuyer credit expansion and $250 for Social Security recipients, veterans and railroad retirees.