Q & A on checks 2a

CHILD TAX CREDIT Q&A

How do I find out if I'm eligible? Generally, you're eligible if you claimed the child tax credit on your 2002 tax return and your qualifying child was born after 1986. The IRS will send you a notice of your advance payment amount a few days before your check is mailed.

When will I receive my check? The Treasury will mail most of the advance payment checks on July 25, Aug. 1 and Aug. 8 -- more than 8 million checks each week. The mailings will be scheduled according to the last two digits of the Social Security number that appears first on the 2002 tax form.

Will this advance payment raise my taxes for 2003? Noâ it's part of the tax cut the new law gives you for 2003. Keep the notice the IRS sends you for your tax records. You will need your advance payment amount to figure the child tax credit on your 2003 return.

If I receive the advance child tax credit payment will I get a smaller refund than last year? Assuming your income and number of qualifying children remain the same, your 2003 refund shouldn't be smaller than your 2002 refund because of your advance payment. That's because the advance payment is the same amount as the increase in the value of the credit. The law simply gives you this increase now, rather than having you wait until next year for a bigger refund. When you figure the child tax credit on your 2003 return, you will subtract the amount of your advance payment check from the $1,000-per-child total, generally leaving you with the same $600-per-child credit that you had in 2002.

SOURCE: IRS