So what's up with the child tax credit this year?

[Mrs. Charming]

So I had a friend of mine tell me that they're doubling the child tax credit or somehow doubling something with child dependents this year. She also said not to file before Feb 15th because these won't be "official" until then. I'm REALLY confused. I googled this but apparently I'm confused to the point where I'm not googling the right thing.

Can someone help explain this to me? Anyone know what is going on?!

 

[mjlewis23]

Your friend is a little mistaken. The child tax credit was set to revert back to $500/child with the Bush credits expiring. Now that they have voted to extend the credits, you are able to take the $1000 that you've been taking for the past several years.

As far as Feb. 15th, that's when several of the forms will be available to be filed as the IRS needs to reflect the extension of the credits and AMT patch. Not everyone needs to wait until mid-late Feb., but if you itemize for example, you will need to wait for the forms.

 

[racechick8293]

http://money.cnn.com/2010/12/31/pf/taxes/irs_filing_delay/index.htm

 

[Mrs. Charming]

I thought it sounded funny, and she wasn't clear so I thought I'd better check. So it's not "doubled", it's extended. Makes more sense. If it doubled, I thought I'd have heard it all over the news. We file online, ours is pretty straightforward, so maybe we'll get to file before Feb 15th.

Thanks!!

 

[FourBees]

So I usually itemize my taxes every year and from what I am reading I will not be able to do that until mid February. Does anyone know how people who itemize their taxes are going to be affected? I read the article but it doesn't give any information other than saying you have to wait to file. TIA

 

[Mrs. Charming]

So I usually itemize my taxes every year and from what I am reading I will not be able to do that until mid February. Does anyone know how people who itemize their taxes are going to be affected? I read the article but it doesn't give any information other than saying you have to wait to file. TIA

I wish I knew, it's as clear as mud!

 

[Cheshire Figment]

If you use a 1040-A or 1040-EZ you can file immediately. If you use a 1040 with a Schedule A or certain other Forms/Schedules you should not submit the return until IRS says it is ready to process them. This will be widely announced in the news.

However, it does not hurt to get your return prepared and ready early. That when when the word gets out you can file. And you will not mess up and delay the commercial tax preparers.

Also, there is no time restrictions I have heard of for the filing of any State Income Tax Return. You can file your State Return before the Federal.

Mike (CPA)

 

[mdh715]

For further clarification, please go to the official IRS website (irs.gov).

In the middle of the page (towards the top), click on "Filing Delays For Some" (the window rolls to different selections). There you will receive the up-to-date information.