Child Tax Credit Question-----

Avatar for lvhunnie
iVillage Member
Registered: 03-28-2003
Child Tax Credit Question-----
8
Wed, 06-18-2003 - 12:26am
OK I have heard about the tax cut but was not paying too much attention when it came out... I have 2 kids, one is 3 1/2 and the other is 5 mos. I am currently the only one that is really working.

Are we going to get money back from the government? If so, when does Mr. Bush plan to send it out? Because I sure could use it :)

Thanks in advance and please forgive my ignorance on this!

lvhunnie

iVillage Member
Registered: 04-02-2003
Wed, 06-18-2003 - 8:03am
Yes, you will get a check for $400 in July and August. You'll only get $400 now, because your youngest wasn't included on your 2002 taxes. But, you'll get the full $1000 credit when you file your taxes this year. The $400 is an advance payment toward the increased tax credit from $600 last year to $1000 this year.

I hope this makes sense.

Avatar for jajaadetton
iVillage Member
Registered: 03-29-2003
Wed, 06-18-2003 - 8:58am
When you get it depends on what the last two numbers of your/or hubby's social security numbers are...

if they are 0-33 it'll be sent out July 25th.

if they are 34-66 is sent out August 1st.

if they are 67-99 they are sent out August 8th.

Avatar for lvhunnie
iVillage Member
Registered: 03-28-2003
Wed, 06-18-2003 - 1:09pm
Thank you so much! I will use that to snowflake towards our target card.

lvhunnie

iVillage Member
Registered: 03-27-2003
Thu, 06-19-2003 - 12:20am
"The $400 is an advance payment toward the increased tax credit from $600 last year to $1000 this year."


Sorry, but this is incorrect...Here's my answer to a similar question on the "Taxes" forum:



The "prefund" (as I like to call it) is based on your 2002 TAX RETURN...Reason being is that all you have to do is look to see if you got the Child Tax Credit in 2002...If you did then you will get a "prefund"...If you received a partial credit(due to income limits), guess what?? you will receive a partial "prefund"...If you got 0 credit (which means you had no income to tax and probably paid 0 taxes) then you get no "prefund"...I have noticed that alot of news programs fail to let the people know that this is an advance (thus the "prefund" name) on their 2003 expected credit...G.W.& Co. is letting you have the increase from 600 to 1000 ahead of time, expecting you to stay on about the same income level as 2002...Soooo, if it turns out you don't qualify for this credit (or qualify for a lower amount of the full $1000 credit due to income limits) you may have to pay it back when your 2003 taxes are calculated...I say maybe because the Treasury has been quiet about this issue, but I figure they will let you keep it, as they did with the last "prefund" we had, remember???

Avatar for karenester
iVillage Member
Registered: 03-26-2003
Thu, 06-19-2003 - 11:02am
This was my big question.

I have three children and took the whole credit last year. So, I should get a prefund of $1200 in August.

BUT, due to a end of job lump sum payment early this year, our income level this year will be so high that we will not qualify for the credit in 2003. (We used the money to pay off our cosigned student loans and create an emergency fund, by the way.)

So, does this mean that next spring when we calculate our taxes, we will have to pay back the $1200, since we won't be eligible for the credit? I am going to add the money to our emergency fund, so it will still be there when it comes time to have to repay it, but I really need a new stove, and that money would come in handy, since our motto is no new debt, so I cannot get the stove until I have saved the cash to afford it outright.

iVillage Member
Registered: 04-02-2003
Thu, 06-19-2003 - 11:03am
You're right. There are a whole lot of "ifs and buts" with the legislation. Low-income people will likely not get anything nor will you if for some reason you were not eligible for the credit in 2002. Also if you were eligible in 2002 but for some reason will not be in 2003 (significant income increase or decrease; child turning 17, or some other reason), you will receive the money but may have to pay it back when you file 2003 taxes. In my case, it's pretty straight forward.

It's pretty complicated, but the IRS is supposed to send out letters prior to mailing out checks explaining things.

iVillage Member
Registered: 04-17-2003
Thu, 06-19-2003 - 1:39pm
I also heard that if you get medicaid or foodstamps you may not be elgable for a refund did any one else hear this
iVillage Member
Registered: 04-02-2003
Thu, 06-19-2003 - 2:10pm
I'm not sure, but it's likely. If you qualify for that type of government assistance, it's likely that you're not paying much in taxes already, lessening the likelihood that you would get a rebate.