Tax Update Blog: Permalink
« Previous · Tax Update Blog Home · Next »
CHILD CARE CREDIT ADVANCED PAYMENTS: DON'T JUST DO SOMETHING, STAND THERE!
May 29, 2003
The new tax law just signed by the president has an instant gratification clause for taxpayers with children - an increase in the Child Tax Credit from $600 to $1,000 per child, effective for 2003. The instant gratification? The $400 increase will be paid in advance, starting in a few weeks. What do you have to do to get the checks? If you have already filed your 2002 return, nothing at all.
The checks will go out to taxpayers who have already filed their 2002 returns on the following schedule, based on the last two digits of their social security numbers:
00-33 -- mailed July 25
34-66 -- mailed August 1
67-99 -- mailed August 8
Taxpayers with extended returns will receive their checks as their returns are filed and processed.
This credit phases out starting at $110,000 adjusted gross income for joint filers and $75,000 for single taxpayers. A quirk in the legislation makes the increase in the credit mostly unavailable to taxpayers with incomes under $26,500. This is because the credit isn't fully "refundable." If a credit is refundable, you get a refund for it, even if you had no tax liability before the credit and no withholding.
Bookmark: del.icio.us • Digg • reddit
Tax Updates
Subscribe to Tax Updates
The items included in the Tax Update Blog are informational only and are not meant as tax advice. Consult with your tax advisor to determine how any item applies to your situation.
Joe Kristan writes the Tax Update items, and any opinions expressed or implied are not neccesarily shared by anyone else at Roth & Company, P.C. Address questions or comments on Tax Updates to
Search Tax Updates
Friends and Neighbors
Economics Nerds
Hard-Core Tax Nerds
Gigablogs
Insurance Folk
Goners
Legislation
Tax Update Data Feeds
