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IR-2003-91, July 24, 2003
WASHINGTON — Tomorrow, the federal government
will mail the first of more than 25 million checks
provided under a recent tax law change. According to the
Internal Revenue Service, the checks represent an
advance of this year’s child tax credit increase and
will go to most parents who claimed the credit on their
2002 returns.
The Jobs and Growth Tax Relief Reconciliation Act
increased the maximum credit amount from $600 to $1,000
per qualifying child and directed that taxpayers receive
the increase this summer, rather than waiting until they
file their 2003 returns.
“As long as we have a good mailing address, taxpayers
don’t have to do anything to get their checks,” said IRS
Commissioner Mark W. Everson. Taxpayers should, however,
notify the Post Office if they’ve moved since filing
their last return. “The IRS will figure the advance
amount based on each taxpayer’s 2002 return,” he
said.
The initial checks are going to those who filed early
enough for the IRS to process their returns by early
July. The mailing date depends on the last two digits of
the taxpayer’s social security number:
- 00—33 – July 25 mailing
- 34—66 – August 1 mailing
- 67—99 – August 8 mailing
People who filed after April 15 – for example, those
with extensions – will get any advance payment they are
entitled to receive after the IRS processes their 2002
return.
Taxpayers who did not claim the Child Tax Credit last
year are not eligible for an advance payment, even if
they will be able to claim the credit on their 2003
returns. For example, if your only child is born this
year, you will not get any advance payment, but you may
qualify for the credit when you file your return next
year.
Some parents who claimed the Child Tax Credit last
year will not receive an advance payment. A child may
now be too old to qualify (over 16). Or the credit’s tax
liability and earned income limitations may result in no
increase for that taxpayer. Or the amount may be too
small – the government won’t send a check when the
calculated advance payment is less than $10.
The IRS Web site has a new feature to let taxpayers
know the amount and mailing date of their advance
payment checks. Click on “Where’s My Advance Child Tax
Credit?” for details on the information needed from the
2002 return to check on the status of a payment. The
status check will also tell if a payment may be reduced
because of taxes owed or an outstanding non-tax federal
debt, or why a taxpayer with a child does not qualify
for an advance payment.
The Advance Child Tax Credit Status application is
only for taxpayers who checked a box on line 6(c),
column (4) of the return that a dependent was a
qualifying child for the Child Tax Credit. Taxpayers
without children who use this feature will get a generic
message about the advance payments, but no specific
information about their tax accounts.
This Web feature should have information for a
taxpayer about 11 days before the check mailing date.
Currently, the information covers taxpayers whose checks
will be mailed this week and next, as well as taxpayers
who have children but are not eligible for an advance
payment. By July 28, it should have information for all
taxpayers included in the initial mailings. The system
will be updated weekly with data from returns as they
are processed.
The IRS is also sending notices that contain the
advance payment figure to eligible taxpayers. They
should save these notices with other records that they
will need to complete their 2003 tax returns. When
preparing those returns, taxpayers will reduce the total
Child Tax Credit by the advance payment already
received. If the advance amount is more than the credit
– which could result from a change in income or in the
number of qualifying children – the recipients will not
have to repay the difference.
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