about tax credit...

[DAVESBABYDOLL]

any links to see if I will get it? TIA

[tsquared]

Originally posted by DAVESBABYDOLL
any links to see if I will get it? TIA
Hmmmmmmmmmmmmmmmmmmmmmm

[Maggie02]

http://www.cnn.com/2001/ALLPOLITICS/06/03/oneill.rebates/

[Maggie02]

http://www.usatoday.com/money/perfi/columnist/block/2001-06-12-block.htm

[Shancopp]

these two links are to articles printed in 2001. Does she mean the refund for 2003, I'm assuming so. I'd like to figure out if I get it too. Thanks!

[mlathroum]

http://www.irs.gov/index.html

I just did the same thing. Here is the schedule as they will be mailed also. They will go by the last two digits of the social security number it was filed under. We use Hubby's and he ends in "00". Just in time for school shopping and it looks like we
will recieve $400 per kid and we have 2 boys. WOOHOO!!



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New Tax Law Means Extra Cash for Some Families This Summer
This summer, the check is in the mail. Really! Your kids could be the reason you get a special check from the government. And, best of all, you do not have to do anything. The IRS will do it all and send it straight to your mailbox. Automatically!

The check is an advance payment of the new tax law's 2003 increase in the Child Tax Credit. If you claimed the credit on your 2002 tax return, you may be eligible for up to $400 for each qualifying child. That's the difference between the 2002 maximum credit of $600 and the new amount of $1,000.
Starting July 25, the checks will be issued to about 25 million eligible taxpayers. And you don't have to call, apply or fill out another form. So, just sit back and wait for the check in the mail.

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Mailing Schedule for Advance Child Tax Credit Payments

The Treasury Department will begin mailing checks for the advance payment of the increased Child Tax Credit on July 25, with most checks mailed by August 8. These will cover eligible taxpayers who filed their 2002 tax returns by April 15. As the IRS processes returns from taxpayers who filed after that date, it will schedule advance payments on a weekly basis. No checks will be sent after December.
For the first three weeks, the checks will be sent according to the last two digits of the taxpayer's social security number:

00-33 -- mailed July 25
34-66 -- mailed August 1
67-99 -- mailed August 8

[Shancopp]

What was the income cutoff?

[sharinbo]

Advance Child Tax Credit Payments: Frequently Asked Questions

Starting July 25, the IRS will begin issuing advance payment checks to about 25 million taxpayers who claimed the child tax credit on their 2002 tax return. Taxpayers who did not claim a child tax credit on their return will not receive an advance payment. The payment is an advance refund of the expanded child tax credit for the 2003 tax year. The child tax credit will increase to a maximum of $1,000 per child from $600. Taxpayers could receive up to $400 for each qualifying child they claimed on their 2002 return.

To help taxpayers, the IRS has these answers to some commonly asked questions, plus a news release and a fact sheet.

1. What do I need to do to get an advance payment check?

Nothing at all – the IRS will take care of everything. We’re using your 2002 tax data to automatically figure whether you’re due an advance payment check and if so, how much it will be. If you’re getting an check, we’ll notify you shortly before we mail it. You won’t need to call or fill out any forms or applications.

2. How do I find out if I’m eligible?

Generally, you’re eligible if you claimed the child tax credit on your 2002 tax return and your qualifying child was born after 1986. The IRS will send you a notice of your advance payment amount a few days before your check is mailed.

3. When will I receive my check?

The Treasury will mail most of the advance payment checks on July 25, August 1 and August 8 – more than 8 million checks each week. The mailings will be scheduled according to the last two digits of the Social Security number that appears first on the 2002 tax form.

Treasury will continue to mail checks until late December to taxpayers who filed returns after April 15, such as those who requested automatic extensions. If you are one of these filers, do not change your 2002 return or payment amount based on your expectation of receiving an advance payment check. If you are eligible, you will receive your advance payment after the IRS processes your 2002 return.


4. Why is Treasury mailing the check instead of using direct deposit?

People often change bank accounts. While people also move, a mailed check can and will be forwarded to a new address. However, a direct deposit cannot be forwarded if a bank account has been closed.

5. I have moved since filing my 2002 tax return – how will my check reach me?

You should file a change of address notice with the U.S. Postal Service to ensure that your advance payment check may be forwarded to your new address. Without your current address, the check could be returned to the IRS as undeliverable.

6. I have not filed my 2002 tax return yet, can I still qualify for an advance payment?

Yes. If you filed for an extension, you have until Aug. 15 to file your 2002 tax return. (Under some circumstances, you may seek another extension until Oct. 15.) If you claim a child tax credit on your 2002 return, follow the 2002 tax law in figuring the amount. Do not change your return or your tax payment in anticipation of an advance payment. If you are eligible for the advance payment, we will mail your check four to six weeks after we receive your 2002 tax return.

7. My spouse and I have divorced and the advance payment check is made out to both of us – can I cash it?

If the check is made payable to two parties, then both parties must endorse the check on the back. Even if the two parties are now divorced, both must sign the check.

8. Will I qualify for an advance payment if my qualifying child turns 17 on December 31, 2003?

No. Your qualifying child must have been born after 1986 for you to be eligible for an advance payment.

9. What if I receive an advance payment that’s larger than the Child Tax Credit I am entitled to claim on my 2003 return?

When figuring your 2003 child tax credit, you will subtract your advance payment from the amount you would otherwise claim. If your advance payment was more than this amount, you will not have to repay the difference. The new law bases the advance payment on the child tax credits claimed on the 2002 tax return. Of course, we recognize that your tax situation can change from year to year.

10. Will this advance payment raise my taxes for 2003?

No – it’s part of the tax cut the new law gives you for 2003. Keep the notice the IRS sends you for your tax records. You will need your advance payment amount to figure the child tax credit on your 2003 return.

11. I’m eligible but I didn’t receive my check. What should I do?

If you do not receive an advance payment check, you will still be entitled to up to an additional $400 per qualifying child if you claim the Child Tax Credit on your 2003 tax return. Either way – through the advance payment or through claiming the credit on your return – you will receive the benefit of the credit’s increase from a maximum of $600 to $1,000 per child.

12. If I receive the advance Child Tax Credit payment will I get a smaller refund than last year?

Assuming your income and number of qualifying children remain the same, your 2003 refund shouldn’t be smaller than your 2002 refund because of your advance payment. That’s because the advance payment is the same amount as the increase in the value of the credit. The law simply gives you this increase now, rather than having you wait until next year for a bigger refund. When you figure the Child Tax Credit on your 2003 return, you will subtract the amount of your advance payment check from the $1,000-per-child total, generally leaving you with the same $600-per-child credit that you had in 2002.

13. I'm eligible for an advance Child Tax Credit payment, but I still owe federal income tax from last year. Will my advance payment be reduced because of this?

Like any tax refund, the advance payment may be applied against a taxpayer's past-due federal or state income tax, or nontax federal debt. If the advance payment amount is more than the balance owed, the taxpayer will get a check for the difference. Taxpayers subject to such offsets will receive a letter explaining how the advance payment was applied.

[sharinbo]

Advance Child Tax Credit Payments

FS-2003-13, May 2003

Related News Release: IR-2003-68; Frequently Asked Questions

About 25 million taxpayers may be eligible for an advance payment of an increase to the Child Tax Credit. The Jobs and Growth Tax Relief Reconciliation Act of 2003 raised the Child Tax Credit to a maximum of $1,000 per child from $600 per child, beginning in 2003. The Act also provided for immediate tax relief by directing the Treasury to send this increase to taxpayers this year. Eligible taxpayers could receive up to $400 for each child claimed on their 2002 returns as an advance payment of their 2003 Child Tax Credit.

The IRS and Treasury will automatically notify and mail advance payments to eligible taxpayers. Here are the basics:

Taxpayers have no need to call, no need to apply, no need to fill out another tax form.
The government will automatically mail checks to eligible taxpayers, beginning July 25.
Taxpayers who receive the advance payment should keep the IRS notice for their records. This amount will affect the computation of the Child Tax Credit on their 2003 returns.
Child Tax Credit Increase Accelerated

The Child Tax Credit was created by the Taxpayer Relief Act of 1997. It began in 1998 as a maximum credit of $400 per qualifying child. The new law accelerates a previously scheduled increase of the maximum credit to $1,000 per child, effective for 2003 and 2004.

The Child Tax Credit is a nonrefundable credit for each qualifying child. To qualify, a child must be under age 17, be a citizen or resident of the United States, be claimed as the taxpayer’s dependent, and be the taxpayer’s (a) child, stepchild, adopted child, or grandchild; (b) sibling, stepsibling, or a descendant of any of them, whom the taxpayer cared for as his or her own child, or (c) eligible foster child.

There is also an Additional Child Tax Credit, for individuals who get less than the full amount of the Child Tax Credit because their tax is too low. The Additional Child Tax Credit – figured on Form 8812 – may result in a refund even if the person does not owe any tax.

The Child Tax Credit is not the same as the Credit for Child and Dependent Care Expenses. On the 2002 forms, the Child Tax Credit is on line 50 of Form 1040 and line 33 of Form 1040A. The Additional Child Tax Credit is on line 66 of Form 1040 and line 42 of Form 1040A.

No Action Required
Taxpayers do not need to do anything to receive the advance payment. The IRS automatically will send notices to eligible taxpayers. The IRS notice will be followed a few days later by the advance payment check. Both the notice and the check will be mailed to the address listed on the taxpayer’s 2002 tax return. Anyone who has moved since filing the 2002 return should notify the U.S. Postal Service of the new address, so that the notice and check may be forwarded.

The Treasury will mail advance payment checks on July 25, Aug. 1 and Aug. 8 to taxpayers who filed their returns by April 15. The checks will be issued based on the last two digits of the Social Security number listed first on the 2002 tax return. Taxpayers whose last two digits are the lowest will receive their checks first.

Taxpayers who have received filing extensions will still get the advance payment checks if they are eligible. They should have their advance payment checks about four to six weeks after the IRS receives their 2002 tax return.

Advance Payment Guidelines
The IRS will use 2002 tax year data to determine who will receive the automatic advance payment. Generally:

Taxpayers must have claimed the Child Tax Credit on the 2002 tax return.
Taxpayers must have used Form 1040 or Form 1040A, or filed electronically.
The child must have been born after 1986.
Examples of Taxpayers Who Qualify

Mr. and Mrs. Brown have two children, ages 8 and 10; their 2002 AGI (Adjusted Gross Income) was $50,000 and they claimed a Child Tax Credit of $1,200. The Browns will receive an advance payment of $800.

Mr. and Mrs. Green have two children, ages 11 and13; their 2002 AGI was $125,500 and they claimed a Child Tax Credit of $400 because of the phaseout provision. The Greens will receive an advance payment of $800.

Ms. Gray has one child, age 7; her 2002 earned income was $16,560; she claimed a Child Tax Credit of $368 and an Additional Child Tax Credit of $232. Ms. Gray will receive an advance payment of $389.

Mr. and Mrs. White have three children, ages 12, 14 and 16 in 2002; their 2002 AGI was $65,000 and they claimed a Child Tax Credit of $1,800. The Whites will receive an advance payment of $800, based on their two younger children, since their oldest child turns 17 in 2003.
Not All Are Eligible
Some taxpayers with children are not eligible for the advance payment, including:

Taxpayers who filed Form 1040EZ, which doesn’t provide for claiming dependents or the Child Tax Credit.
Taxpayers who had income that exceeded certain limits.
Taxpayers whose only children were born before 1987.
Taxpayers whose only child was born in 2003.
Taxpayers whose Child Tax Credit and Additional Child Tax Credit for 2002 totaled less than $600 for each qualifying child because of the tax liability and earned income limitations.
The Child Tax Credit begins to phase out for taxpayers with modified adjusted gross income above:

$110,000, if married filing jointly
$55,000, if married filing separately, or
$75,000, for all others.
For every $1,000 or portion thereof above these thresholds, the total credit amount is reduced by $50. Thus, in 2002 a taxpayer with two children (who would otherwise have a $1,200 credit) had the Child Tax Credit completely phase out if his/her AGI was more than $23,000 above the threshold. The higher per child credit amount for 2003 will mean that a taxpayer with two children will not have the $2,000 credit amount completely phase out unless his/her AGI is more than $39,000 above the threshold.

A taxpayer who was not eligible for the Child Tax Credit for 2002 will not receive an advance payment check, even though the higher phaseout limit may allow this taxpayer to claim the credit when filing the 2003 tax return.

Tax Year 2002 Data Used
The IRS uses 2002 tax data to figure the advance payment. Some people’s tax situations will change during the year. For example, if a child was born in 2003, the taxpayer would not have claimed that child on the 2002 return and would not be eligible for an advance payment based on that child, but may claim a Child Tax Credit of up to $1,000 for that qualifying child on the 2003 tax return.

Taxpayers receiving an advance payment should keep the IRS notice of the advance payment amount in order to properly complete the 2003 tax return. They will subtract any advance payment already received from the total amount (up to $1,000 per child) when figuring the credit for the 2003 return.

Some taxpayers may have changed residency after filing the 2002 return. If an advance payment check cannot be forwarded to the taxpayer, it will be returned to the IRS. Taxpayers who qualify for the advance payment, but who do not receive a check, may claim the full Child Tax Credit amount of up to $1,000 per qualifying child on their 2003 tax returns.

[tsquared]

so i guess if you dont have any kids you dont get anything right?? I guess that leaves me out..

[Ashlee]

tsquared, me too, darn an extra $400 sounded good.

[tsquared]

How many kids can i borrow so i can get this money?????lol

[Ashlee]

Anyone with over two children, please let us borrow one!

[MsLynn]

is it saying if you got earned income credit you dont' get it either??? thank god for turbo tax or i'd never get mine done

[Sun_Angel]

*packs her kids things and brings them to tsquared* TRUST ME, you will pay my DOUBLE what you make off that credit trying to get me to take them back ;)


QUESTION, so if you have three kids do you get $1200 or is two like the cut off?

[ladybugbhb]

i think if you get the eic it takes off what you got ie, if you have 3 kids and you got 200 eic last year, instead of getting 1200, you will get 1000. someone please correct me if i am wrong.