Advance Child Tax Credit Payments and the 2003 Tax Return
During 2003, nearly 24 million taxpayers received an advance payment of an increase to the Child Tax Credit. A change in the law raised this creditfrom a maximum of $600 to $1,000 per child, with the increase sent to eligible taxpayers beginning in July. Taxpayers received up to $400 for each qualifying child claimed on their 2002 return.
Now these taxpayers must subtract their advance payment when figuring the Child Tax Credit to claim on their 2003 tax returns. If the check was reduced (offset) due to back taxes owed or certain other debts, the total before offset is the amount to use. Each spouse is considered to have received one-half of any advance payment made to a married couple. If the advance payment was more than the taxpayer's allowable credit, the taxpayer does not have to repay the difference.
Most taxpayers will use a worksheet in the tax instructions to figure the credit. Some will use Publication 972, Child Tax Credit, instead. These include taxpayers, who exclude certain income earned outside the United States; who claim the adoption, mortgage interest or DC first-time homebuyer credits; or whose adjusted gross income is more than $75,000
($110,000 if married filing jointly; $55,000 if married filing
separately).
The IRS sent each advance payment recipient a Notice 1319 with the payment amount (before any offset) shortly before the check was mailed. A taxpayer who doesn't have this notice may check the IRS Website at
www.IRS.Gov or
call the IRS help line at 1-800-829-1040 to get the Advance Child Tax Credit amount.
