Child Credit Increased. For 2003 and 2004, the child credit has been increased from $600 to $1,000 per eligible child. Generally, your dependent children who are under the age of 17 on December 31, 2003 will be eligible for the increased credit in 2003.
The income phaseout will stay the same as last year ($110,000 for married filing a joint return; $75,000 for single, head of household or qualifying widow[er]; $55,000 for married filing a separate return). This increase is only for 2003 and 2004; in 2005 the credit will be reduced to $700 per eligible child.
The Treasury Department has been directed to mail out all advance payments for 2003 by October 1, 2003. Most checks should have been mailed in July and August. If you filed for an extension on your 2002 return, your check will be delayed until after you file. Notices will be sent to everyone who is entitled to receive a check; you should keep this notification for your 2003 taxes. You will need to take into account the amount you received in your check when claiming the child credit on your 2003 return. If you are entitled to receive more credit than you received by check, you will be able to claim the remainder on your return. If you receive a check, but determine on your return that you are not entitled to claim the entire amount of the credit already received, you will NOT have to pay back the excess amount.
You will not receive an advance tax credit check if you would not have qualified for the credit in 2002, but you are entitled to the credit in 2003 (for example, if you did not have any children in 2002, but you had a child in 2003). However, you will still be able to claim the entire amount of the credit (up to $1,000) on your 2003 return.
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