Refunds from tax cut bill

[LynnM]

I read on aol this morning about the President signing a new tax cut bill. It states withholding tables are changing so paychecks will be bigger and child tax credits checks will begin arriving in July. Anyone know any more about this? How do you know if you are getting a check? Just wondering if I should be looking forward to some money?

 

[jfulcer]

Supposedly families with younger kids will be getting a $400 check from what I've heard. Dunno how 'young' young is, and don't know if the $400 is actual or not. Just gonna be happy whatever it is..

 

[Steve H.]

Yes, various tax brackets are being lowered, thus a smaller % of your pay will be withheld each paycheck. And since the rate change is retroactive to Jan. 1st, the amount of the reduction of taxes taken out will essentially be doubled to make up for the first half of the year (e.g. if you're in the 28% bracket and the bracket was lowered to 26%, the taxes withheld will be 24% for the remainder of the year so that the final taxes withheld equals the 26%*)

And the $400 tax credit applies to dependents 17 years and younger (as of Jan. 1st, 2002).

*Hypothetical figures -- I don't know if that bracket really exists.

 

[binny]

HALLELUIAH!!!

 

[Toby'sFriend]

You might want to check this article

http://story.news.yahoo.com/news?tm...&e=1&u=/ap/20030528/ap_on_go_pr_wh/bush_taxes

which says the child credit checks should arrive in July and that the IRS will be publishing the new tax tables today so that employers can adjust paychecks quickly.

 

[Cinders]

$400 per child or $400 total for families with children? Either way that money is going to spend beautifully on my next vacation. Which it seems is what the President is shooting for....nothing like helping the economy by going on vacation.

 

[Steve H.]

$400 per child

 

[LynnM]

$400 per child, I hope that's what it is. That would be $2000, maybe I can talk dh into a vacation.

 

[ryanpatricksmom]

Just keep in mind....

If you exceeded the maximum income levels for the $600 child tax credit that was previously on the books, you're also going to be ineligible for the increased tax credit . In other words, if you didn't get to claim the $600 tax credit in 2002, don't spend your refund ....it's not coming.

 

[nkjzmom]

Wow....that would nearly pay for our PAP's for next year.....I wonder how many families will use this money for trips to Disney???

 

[jfulcer]

Originally posted by ryanpatricksmom
Just keep in mind....

If you exceeded the maximum income levels for the $600 child tax credit that was previously on the books, you're also going to be ineligible for the increased tax credit . In other words, if you didn't get to claim the $600 tax credit in 2002, don't spend your refund ....it's not coming.

So what is that maximum income level?

 

[jrmasm]

I think I read $110,000 combined.

 

[Steve H.]

Yes, married filing jointly, the AGI limit begins at $110,000 and the refund is completely phased out at $130,000.

 

[Colleen A.]

OK, I'm still confused. I understand the MAXIMUM income level...but what is the minimum?

 

[ryanpatricksmom]

If you earn less than $25,000 you would likely not be able to take the credit. If you have taxable earned income, and a child under the age of 17 the tax credit would be $1000 per child going forward.

If you and your spouse have a combined income in excess of $110,000 the amount of the credit is reduced. At a combined income of $130,000 it is phased out completely.

Believe me, we could all use an extra $400, some of us just need it more than others.

 

[Steve H.]

Originally posted by Colleen A.
OK, I'm still confused. I understand the MAXIMUM income level...but what is the minimum? I don't want to come across wrong, but IMHO, a couple making over $100,000 doesn't really need this $400 rebate.

No offense intended, but how would you be able to know whether or not a family needs extra money?

 

[Colleen A.]

I understand the changes when we all file next year's tax return. What I'm confused about is the $400 rebate checks (politics have never been my strong points! ) How do we know if we're going to get them or not? Is there something we need to file? We're a single income family and my DH has a lot of medical bills. He has already used up his sick time for the year and it would be nice to know this extra "cushion" was coming!

 

[jfulcer]

Originally posted by Colleen A.
I understand the changes when we all file next year's tax return. What I'm confused about is the $400 rebate checks (politics have never been my strong points! ) How do we know if we're going to get them or not? Is there something we need to file? We're a single income family and my DH has a lot of medical bills. He has already used up his sick time for the year and it would be nice to know this extra "cushion" was coming!

As far as I understand it from this thread, if you made under $110,000 and filed jointly you would get $400 back per child. You shouldn't have to file anything or call anyone.

 

[Colleen A.]

If this is the case, then WOW!! It won't change my plans as far as vacations go (DH's not well enough this year anyway ) but like I said, IF he needs to take a sick day, at least we know this extra money is there.

By the way, Steve H., LOVE the clip art in your signature!! Can REALLY relate!!

 

[peg2001]

Originally posted by Steve H.
No offense intended, but how would you be able to know whether or not a family needs extra money?

That's just how it works. If you make $25,000, you assume that families making $50,000 have plenty of cash. If you are barely making ends meet making $50,000, you think that you would be swimming in funds if you had $100,000 income. And so on and so forth.

Peggy