Anyone going to add on with the child tax credit?

[floridafam]

It's hard to resist adding on.

It's basically "free money" for us. We weren't planning on it and didn't include it in our budget.

The check would cover the deposit for an add on at BCV before the points are gone.

Anyone else thinking about doing anything DVC related with this money?

 

[MAC3]

Don't tempt me!

 

[perdidobay]

*cringe*
I hate when people say it's free money
It's money you send to the government, they are just giving you some back in advance of next years taxes.
It is an advance on next years tax payments, am I wrong?

 

[floridafam]

I know it's not "free money". I just like to say that. It makes me feel better

Not quite sure about it being an advance for next year. I thought it was from last year-retroactive? Last year the credit was up to $600 per child. I thought with the new law it was now $1,000 and they included last year in that.

So, do we get up to $400 per child this year and then up to $1,000 per child tax credit on our taxes next year?

 

[crisi]

We have two children but won't qualify.

Qualification phases out fast, not everyone will get a check. You can check the IRS web site for your status www.irs.gov.

 

[jaysue]

Actually it's worse than that - it is part of a $450 Billion dollar deficit that our kids and their kids and so on will have to deal with

Thanks
jaysue

 

[floridafam]

I hear you Jaysue.

Our kids and their kids will have to deal with this but I'm not going to refuse the check from the mailperson when they drop it off.

So, anyone out there who has nothing else to do with the money other than add on more points?

 

[WDWguru]

As long as it's "free money" you could send it to me!

DH and I are childfree, so we get squat even though we probably pay more in taxes than most people we know. ::sigh::

 

[carone0318]

I am not planning to add-on, but am planning on using the money for airfare or our APs for our next trip in Feb. So, I do consider it a vacation investment

 

[HeatherPage]

This was cut and pasted from the IRS.gov

Beginning the last week of July, eligible taxpayers who claimed the Child Tax Credit on their 2002 tax returns will automatically receive an advance payment of the 2003 increase in this credit, the Treasury Department and Internal Revenue Service announced today.

Taxpayers will not have to take any action to get this advance payment of up to $400 per qualifying child. The Treasury Department and IRS will perform all the calculations and automatically mail a notice and a check to each eligible taxpayer.

"The only thing the taxpayer needs to do is cash the check," said Mark W. Everson, IRS Commissioner. "If you qualify, we will send you a notice. There's no need to call, no need to apply, no need to fill out another form. The IRS will do all the work. A few days after the notice, you will get the check."

The checks – an advance payment of the 2003 increase in the Child Tax Credit – will be based on the child tax credit claimed on the taxpayer’s 2002 tax return. The Jobs and Growth Tax Relief Reconciliation Act of 2003 increased the maximum child tax credit for 2003 to $1,000 per child, up from $600 for tax year 2002. The law further instructed the Treasury Department to provide the difference – up to $400 per child – as an advance payment to each eligible taxpayer this summer.

The Treasury Department will issue about 25 million of these checks this year, beginning with three principal mailings on July 25, Aug. 1 and Aug. 8. Taxpayers who filed returns after April 15 – for example, those with automatic extensions – will receive their advance payments after the IRS processes their returns. They should not make any change to their 2002 returns or remittances based on an expectation of an advance payment check.

The IRS will send notices to taxpayers on July 22, July 29 and Aug. 5, informing them of their advance payment amount. The IRS urges taxpayers to hold on to these notices for their 2003 tax returns. They will need to take the advance payment into account when determining the amount of their child tax credit on the 2003 tax return.

Taxpayers who are not eligible for the advance payment may still qualify for the increased child tax credit of up to $1,000 when they file the 2003 tax return next year. For instance, a taxpayer who did not have a child in 2002, but had one in 2003, would not receive an advance payment but may qualify for the full $1,000 credit on the 2003 tax return.

 

[floridafam]

HeatherPage,

Thanks for the info

I guess it is an advance of part of next year's credit.

We're still debating about adding on at BCV

 

[HeatherPage]

I forgot to add, I'm going to use it towards paying off a credit card (which was used on our last vacation to Disney). We are sick sick people!

 

[ZerasPride]

I'd love to ours for the downpayment on an add on but the money's already spent. Gotta pay for those plane tickets for our November cruise somehow!

Nice idea though. I keep telling myself that we are not going to add on until our original contract is paid in full. Don't make me weaken!

 

[Duchie]

If we get a check, it'll go for a new kitchen table.

 

[colleen costello]

We may try and save the money toward a cruise. But whenever we try to do something like this, a tree hits the roof or the van's brakes blow... Stuff happens, who knows?

 

[DisneyHumbug]

My DD just turned 17, so I don't think I am entitled to the credit. I've already done 2 add-ons and promised myself no more until the original is paid off!!!

 

[HeatherPage]

Wouldn't she be considered a child until at least the age of 18?

 

[CK1]

It's late and maybe my math is rusty, but....

If it's $400 (or possibly less) per kid, and you figure minimum add-on of 25 pts (and assuming you aren't getting SSR -- so $84 per pt for a total of $2100 needed...) You would have to have a pretty nice nest of kids to get that add-on paid for (i.e. at least 5 or 6!) We have half that many (3) -- but with parochial school tuitions (when we aren't vacationing) and tickets, food, etc (when we are!) we'll just be putting any paybacks we receive right back into the bank, thanks!

Cindy

 

[lacool]

Originally posted by HeatherPage
Wouldn't she be considered a child until at least the age of 18?

She is no longer eligible for the child tax credit once she turns 17.

 

[DVC-Don]

Not getting any check. Government says we are rich. That reminds me, gotta call Ted Kennedy to see if we can drop in at Hyannis Port for a drink.