QUESTION: Could you please explain to us how the federal tax credit of $400 per person or $800 for married taxpayers filing a joint return would be applied to our 2009 federal tax return? I am totally confused, and some of us are unaware of this tax credit.

ANSWER: The “;Making Work Pay Tax Credit”; was created by the American Recovery and Reinvestment Act last year for 2009 and 2010 (see hsblinks.com/1u2).

The act provided a refundable tax credit of up to $400 for individuals and up to $800 for married taxpayers filing joint returns for 2009 and 2010.

Working taxpayers subject to withholding taxes typically would get the credit in adjusted automatic withholding rates handled by their employers.

“;Basically, less withholding was taken out of workers' paychecks,”; explained David Tucker, a spokesman for the Internal Revenue Service. “;This put more money into the taxpayer's pocket by providing more take-home pay.”;

To receive this credit, taxpayers must fill out IRS Schedule M.

“;What this essentially means is that if they don't claim the Making Work Pay credit, they will not receive credit for the additional take-home pay on their tax return,”; Tucker emphasized.

According to the IRS:

» Taxpayers receiving less than the full amount of the allowable credit through reduced withholding will be entitled to claim any remaining credit when they file their tax return.

» The amount of the credit actually received during 2009 in the form of reduced withholding will be reported on your 2009 tax return. Taxpayers who do not have taxes withheld by an employer during the year can claim the credit on their 2009 tax return filed in 2010.

» Taxpayers who file Form 1040 or 1040A should use Schedule M, Making Work Pay and Government Retiree Credits, to figure the Making Work Pay Tax Credit. Completing Schedule M will help taxpayers determine whether they have already received the full credit in their paycheck or are due more money as a result of the credit.

» Taxpayers who file Form 1040-EZ should use the worksheet for Line 8 on the back of the 1040-EZ to figure their Making Work Pay Tax Credit.

This year, taxpayers who received the Making Work Pay Credit will probably see paychecks that are a little smaller than last year.

That is because the credit, which was spread over nine months last year, will be spread over 12 months this year.

For more information about the Making Work Pay Tax Credit, Schedule M and other forms, go to irs.gov or call 800-TAX-FORM (800-829-3676) to order forms and publications. Tucker said that people filing electronically via e-file will find that that system will automatically prompt questions and answers about the tax credit.

QUESTION: I thought that vehicle inspections stickers were only good for 12 months. Recently I saw one that expired in 2012. Could it be a counterfeit?

ANSWER: Hawaii law was changed several years ago to allow safety inspections for new vehicles to be good for two years.

CONNECTION MADE

“;Kokua Line”; was able to connect Matthew Fitzsimmons with his sister.

Thanks to other “;Kokua Line”; readers who were able to alert Fitzsimmons to the search.