New tax cut

[juliette]

Okay is there someone out ther that can answer my question
I just heard on CNN that there is going to be a $400 rebate for people with kids. How do you find out if you can earn this rebate? Checks are suppose to go out this summer.

 

[Demosthenes]

It's $400/child, and every family gets it. You should have yours by mid-July according to CBS news this afternoon.

 

[SplshMtn99]

Does that mean no kids -- no $?????

Any type of tax cut for us.....or is it just kid related?
I haven't seen the news yet.

 

[Minnesota!]

Do childless couples get it? The paper here said you get $400 a child. And then the next line said the same amount will go to married couples, individuals, and then something else...

 

[Blondie]

Our tax cut check is going towards our airfare to Orlando in August!

 

[wvjules]

Here's waht it says on cnn.com

Have a kid? Depending on your income, you can expect as much as $400 more from Uncle Sam.

That's because the tax package would immediately boost the child tax credit to $1,000, up from a current $600. The upshot? Some 24.4 million families would get a $400 rebate check for their kids sometime this summer, according to CCH.

But before you plan on spending that dough, be sure you qualify.

The child tax credit isn't as generous – and may not even be available – for those who "earn too much." In the eyes of Uncle Sam, that's singles with an AGI over $75,000 and married couples with an AGI exceeding $110,000.

If you do qualify for the full credit, be aware that it drops back to $700 in 2005 and $500 in 2011.

 

[juliette]

Is this determined by last years taxes. I know just a little confused Also is it just for married couples are it includes single parents

 

[Steve H.]

The $400 rebates are only for families with minor children. It essentially retroactively gives taxpayers a $1,000 credit per child for last year's taxes, but since last year's taxes have already been filed, the IRS will mail checks out for the $400.

Other tax cuts will affect other taxpayers, with or without children -- but they aren't retroactive like the child credit change.

 

[juliette]

Are single parents entitled Sorry so many questions I'm just excited

 

[coliebird]

Since my daughter was born in July, I only had a child to claim for half the year. Would I still qualify? This would be so great as I need the money for my trip to the World in December.

 

[Steve H.]

Sure, if you have a dependant, you get the credit (assuming you fit inside the AGI limits Jules mentioned).

 

[Steve H.]

Originally posted by coliebird
Since my daughter was born in July, I only had a child to claim for half the year. Would I still qualify? This would be so great as I need the money for my trip to the World in December.

Yes, if the child was born before Jan. 1, 2003, they're a dependent (tax-wise) for the entire year.

 

[wvjules]

WhooHoooo...a refund/rebate I'll actually get. And it will have great timing too. I'm so broke!!! I hope I make it to July.

 

[coliebird]

Thanks for the replies. That should cover some Disney expense.

 

[mom2boys]

Kleinrock's Tax Expert - For taxpayers with children, the bill accelerates part of the increase in size in the child tax credit that was scheduled to be phased in between 2005 and 2010. The amount of the credit is increased to $1,000 for 2003 and 2004 (from $600 under current law). The amount of the credit is then scheduled to decrease to $700 for 2005, 2006 and 2007, before increasing to $800 in 2009 and $1,000 in 2010. For 2003, the increased amount of the child tax credit will be paid in advance beginning in July 2003 and no later than October 1, 2003, on the basis of the information on the taxpayer's 2002 tax return filed in 2003. The advance payments will be made in a manner similar to the advance payment checks that were issued in 2001.

It is retroactive to Jan 1, 2003 but the amount of the check you receive will be determined based upon you 2002 tax return information. So basically, if you were entitled to a Child Tax Credit on your 2002 tax return, you should be getting a check. Your filing status is not relivent. You must have a qualifying child.
A qualifying child is:
1- under the age of 17 at the end of the tax year
2-claimed as a dependent by the taxpayer
3-taxpayer's son, daughter, adopted child, step child, or aligble foster child, and
4-a U.S. citizen or resident alein

The Child Tax Credit phases out when your adjusted gross income reaches:
$110,000 for married, filing joint
$ 75,000 for single, head of household, or qualifying widow
$ 55,000 for married filing separate

 

[nativetxn]

Somehow, we never seem to qualify for these rebates. They tend to take our exemptions <i>away</i> from us. Sad but true.

I have no minor children, so we won't get this one either.

 

[SplshMtn99]

My evening news said there were many tax cuts......and gave the following example:

Married couple making $63,000 per year.....
.......with 2 children, would get back $1100......
.......with NO children, would get back $300.


??????

 

[cindala]

If the child credit is given for this tax year (2003) then I'm out of luck since my youngest will turn 17 this year!

If it's for last year, then I should still get it.

 

[wdwnutze]

Anyone know if this applies to a child in college that is still claimed as a dependant?? I hope so. I might get the new deck I've been wanting afterall.

 

[shep]

With 2 children, this money would be a good start for another disney trip..