Frequently Asked Tax Questions And Answers
Keyword: Advance Child Tax Credit
7.6 Child Care Credit/Other Credits : Advance Child Tax Credit
Why did the IRS send checks to certain taxpayers in the summer of
2003?
On July 25, 2003, the IRS began issuing advance payment checks to about
25 million taxpayers who claimed the Child Tax Credit on their 2002 tax return.
The payment is an advance refund of the expanded Child Tax Credit for the
2003 tax year. This credit increased to $1,000 per eligible child from $600
per child for the 2002 tax year. Taxpayers were able to get an advance payment
of up to $400 per eligible child they claimed on their 2002 return.
I did not get a check or notice telling me that I was going to get
a check. Why not?
The IRS notified all eligible taxpayers before the checks were sent. Taxpayers
did not have to do anything. We were using your 2002 data to automatically
figure whether you were due an advance payment check and if so, how much.
Why did some of my friends get checks and I did not?
There could be several possibilities.
1. You filed after April 15 , with an extension. You will not get any advance
payment that you are entitled to receive until after the IRS process your
2002 return.
2. You did not claim the Child Tax Credit last year. Due to this fact,
you are not eligible for an advance payment, even though you will be able
to clai m the credit on your 2003 return. For example, if your only child
is born this year, you will not get any advance payment, but you may qualify
for the credit when you file your return next year.
3. Your child may now be too old to qualify (over 16). Or the credit's
tax liability and earned income limitations may result in no increase for
you. Or the refund amount may be too small. The government won't send a check
when the calculated advanced payment is less than $10.
What if I moved since filing my 2002 tax return?
If you did not get a check, you can claim up to $1,000 for each eligible
child on your 2003 federal income tax return. Notify the U.S. Post Office
of your address change.
I got the check. Does this mean that I will not be getting a big
refund on my 2003 return?
Assuming that your income and number of qualifying children remain the
same, your 2003 refund should not be smaller than your 2002 refund because
of your advance payment. The law simply gave you this increase rather than
have you wait until you filed your 2003 return in 2004. You just subtract
the amount of your advance payment check from the $1,000 per-child total on
your 2003 return.
Will this advance payment raise my taxes for 2003?
No. It's part of the tax cut the new law gives you for 2003.
I don't remember what the amount was on the check. How can I get
that information?
Visit the IRS website at irs.gov. Click onYour
2003 Advance Child Tax Credit. You will have to provide your
social security number, filing status, and the number of exemptions you claimed
on your 2002 return. Or call (800) 829-1040 and select Your Advance Child
Tax Credit.
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