I am single, eccentric (noone can explain me as a dependent), and I have no children.
I live in NYC
I have $16,000 and compensate off $2500 loan this year.
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Federal income taxation funded : $1449.60
SS taxation withheld: $990.76
Medicare taxation withheld: $231.71
Other: UI/HC/WF $67.92
DI $79.90
FLI $14.38
State income tax: 245.60
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I wish to know wow I do embrace the $400 creation work compensate credit?
Do I need to send any explanation of my tyro loan? What kind of proof?
Also any special form which I need to file? in further to unchanging taxation return?
Thanks in allege for your assistance 
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It gots on Form 1040, Schedule M http://www.irs.gov/pub/irs-pdf/f1040sm.pdf
If you do it online, the site should automatically add Schedule M to your return. You can check line 40 of the 1040A or line 63 of the 1040 to see if they included it, it should say $400.
If filing by mail, file 1040A (shorter form) and add Schedule M. Since you don’t have any other deductions (other than student loan interest), you should file 1040A, shorter form.
You should have received a form 1098-E fort the student loan interest. You can only deduct the interest (amount in box 1), not the whole loan amount. I assume the $2500 is the loan amount. If filing online, the site masy ask you to enter the Lender info from the 1098-E, or it may just ask for the interest amount. I have seen both, depending on which site you use.
FEDERAL RETURN
16000 Income
-5700 standard deduction
-3650 personal exemption
- student loan deduction (?)
$6650 taxable income
Tax = 668
Tax withheld = 1450
Making Work Pay credit = $400
NET = 1450-668+400= $1182 (REFUND of $1182)
The student loan interest deduction will increase your refund by 15% of the amount of interest paid. For example, if you paid $100 in interest in 2009, your refund will go up by about $15.
NY STATE RETURN
16000 Income
-7500 standard deduction
- student loan interest deduction (?)
~$8500 taxable income
NYS tax = 344 -45(NYS household credit) = 299
NYC tax = 248
Taxes withheld = 246
School tax credit = 63
NET = 246+63-(299+248) = -$238 (YOU OWE NY STATE ~$238)
Your amount owed will go down by a couple of bucks for the student loan deduction.
You should really have your company withhold more state income tax, and also withold NYC tax since you’re a NYC resident and are subject to NYC income tax. You can fill out a NY-2104 form and give it to your employer. This is the NYS version of a W-4 for tax withholding. Lines 1 and 2 should both be ZERO and check “YES” to the question “are you a NYC resident?”
Here’s the link: http://www.tax.state.ny.us/pdf/2010/fillin/wt/it2104_2010_fill_in.pdf
This will increase your withholding a little, so you don’t owe money next year.
You can check your withholding amount at this cool site: http://www.paycheckcity.com/NetPayCalc/netpaycalculator.asp
If you do 0 allowances and you get paid weekly (based on $16000 yearly income), they should withhold $7 state tax and $4.66 city tax. If you get paid twice a month, it should be $15.26 and $10.10, respectively.