New tax cut

[cart-mom]

Not sure if everyone heard this on the news the other day but they were talking about the new tax cuts that Bush got approved and I just had to share it with everyone that's on a budget.

If you have children that you claimed on your 2002 taxes you will automatically be getting an extra refund of $400 per child in mid July. 2003 deductions for children will be $1000. per child.

I don't know about you but my DH and I started doing the happy dance when we heard the news!

(This is not a joke - this is copied from MSN -
Boosts the $600 child tax credit to $1,000
Parents who took the child tax credit on their 2002 returns should get an “advance payment” check this summer for up to $400 per child to reflect the new, higher credit. These will function much like the advance payment rebate checks of two summers ago, when taxpayers received up to $300 each in the mail. The difference, of course, is that only parents will benefit; the childless won’t see a cent.

The checks will be mailed out starting July 25 when the IRS starts the first of three principal mailings to qualifying taxpayers. The other payments will be mailed on August 1 and August 8. Notices will be sent out to parents before the mailings informing them of their payment amount. Keep your notices, the IRS advises, for your 2003 tax tax return. You'll need to take the advance payment into account when determining the amount of your credit for your 2003 tax return.

 

[macs4us]

Most families with incomes between $10,500 and $26,625 will not get the credit (which is 1 out of 6 families in the US), nor will a few of those in the highest tax brackets. You can read about it at:
http://www.cbpp.org/5-29-03tax.htm

I don't get a credit for my kitties, but I'll live...

 

[dizzyintx]

I don't know about anyone else but my child is 21, in college and need lots of $$$$ for school, dorm,books etc. I have always thought they stop the credit way too soon at least for parents that are trying to put their kids through school. Just my 2 cents.

 

[peg2001]

Originally posted by dizzyintx
I don't know about anyone else but my child is 21, in college and need lots of $$$$ for school, dorm,books etc. I have always thought they stop the credit way too soon at least for parents that are trying to put their kids through school. Just my 2 cents.

I agree with this. If anyone needs an extra tax help, it is families putting children through college. At least you can still claim the child as a dependent.

I'm happy to hear that we can expect an advance on our tax credit for our 2 kids. Bush would be happy to hear that we plan to spend it towards a vacation.

macs4us, I also made a comment the other day about too bad the credit doesn't apply to pet owners. I'd be sitting pretty to get checks for my 4 cats and 1 dog. 3 of them are elderly so their checks would go towards medical expenses.

Peggy

 

[madge]

The bottom line is that if you got the credit on your taxes earlier this year, then you will get some advance this summer--July or early August is when the checks are supposed to go out. There will be a postcard, then a check!

Since we use some of tax refund for our trip, it stands to reason that we should deposit a portion of the check into the vacation account

 

[hercamore]

Yep, doesn't apply to us. OUr kids in college and we sure could use the extra $$$.


herc.

 

[hightown]

I'll be one of those getting a check. While I have certain opinions about what the current administration is doing to the country's financial health, I admit my 2nd thoughts were having it to use as spending money in WDW for my 9/1 trip!

Disneyland got this years tax refund so seems only right that Disneyworld get some too

Sharon

 

[jlp651]

What about those that don't have kids...do we get anything...

 

[undertheradar]

Since this distribution mirrors the checks sent in 2001, these checks will take awhile to process. If you are getting money back, you are to receive a letter in advance of the check. With three kids ages 12 & under, I can use this money for back to school expenses for them. I wouldn't do any prespending of this until the monies are received.

 

[Selket]

Might be a dumb question but....is this an "advance" for this year's taxes or a refund for last year's (2002) taxes? In other words, we get $400 per child this summer. And when we file taxes for the year 2003 do we get another $1000 per child for 2003? Or will we get the $600 per child for 2003 since we got the $400 sent to us over the summer?

Make any sense? Guess it is a better deal if we get the $400 and then get another $1000 per kid when we file the 2003 taxes. Somehow I doubt that will happen.

 

[Kevin&Becky]

Parents who took the child tax credit on their 2002 returns should get an “advance payment” check this summer for up to $400 per child

This is indeed a prepayment of what you would have gotten from your 2003 taxes....This part of the bill is specific to folks with children and does have income minimums and maximums. If you qualified in 2002 for the $600 per child credit you will probally get the advance.

Kevin

 

[DianeV]

Yes this does go back to the taxes we just filed and I heard the credit is only going to be for 2 years..of course remember you have to turn around and claim it as income on this years income tax!

 

[Mickeyluver37]

Originally posted by Selket
Might be a dumb question but....is this an "advance" for this year's taxes or a refund for last year's (2002) taxes? In other words, we get $400 per child this summer. And when we file taxes for the year 2003 do we get another $1000 per child for 2003? Or will we get the $600 per child for 2003 since we got the $400 sent to us over the summer?

Make any sense? Guess it is a better deal if we get the $400 and then get another $1000 per kid when we file the 2003 taxes. Somehow I doubt that will happen.

'

This is an advance payment on your 2003 refund. If you get a check, you'll only be able to take an additional $600 per kid credit. Those who don't get it for some reason, or have a baby in 2003, will get a $1000 credit per child.

 

[jacksonsmom]

Originally posted by Mickeyluver37
'

This is an advance payment on your 2003 refund. If you get a check, you'll only be able to take an additional $600 per kid credit. Those who don't get it for some reason, or have a baby in 2003, will get a $1000 credit per child.

Can you explain that a little more.
I thought that you will receive $400 child credit check for the 2002 refund & then next year it would be $1000 per cihld for the child credit.
Make sense? I can get so confused with this tax talk! LOL

 

[smart cookie]

Originally posted by madge
The bottom line is that if you got the credit on your taxes earlier this year, then you will get some advance this summer--

This isn't 100% true. It depends on your gross income/taxes paid/and # of children. There are a lot of variables. If you read this: http://www.cbpp.org/5-28-03tax3.htm it gives you a pretty good idea of what you may expect.

 

[jlp651]

ok and what about us with out kids?

 

[DianeV]

This is retroactive back to 2002s taxes and then it will be in effect for 2003 taxes and then it will be done.

 

[nhmomx2]

For the first three weeks, the checks will be sent according to the last two digits of the taxpayer's social security number:

00-33 -- mailed July 25
34-66 -- mailed August 1
67-99 -- mailed August 8


For more information on who is eligible, etc., check our www.irs.gov - there is a link on top of the home page!!

Whoohooo...$800 coming at the end of July - more than enough to pay for our week at the beach in Maine

 

[Cindy B]

Figures... we will be waiting until August... at least it will pay for our August trip!

 

[Alice28]

Cool- the $800 will come in handy with school shopping. It is my understanding that the $400 per child this summer is retroactive to 2002; you will claim $1000 per child (up from 600 from last year) for 2003.

~~~Please don't flame~~~I think the reason the tax credit doesn't apply to those who make less than a certain amount, is because this is all based upon a formula of what you make and how much taxes you actually pay. Case in point- my brother in law makes about $15 an hour and has four dependents- his wife and triplet children. He gets hardly anything taken out of his checks because he can claim a 4 (or maybe even a 5) on his W-2. Therefore, since he doesn't hardly have to pay income tax, he wouldn't be getting any tax refund because he didn't pay anything into the "pot" in the first place. Could he and his family use the extra $1200?? Absolutely. But since he paid nearly 0 taxes in 2002, he won't get anything in return. I didn't understand why he wouldn't be getting any at first either, but then my DH explained it to me and it made sense.