Anyone know the facts of the new Bush child tax credit plan? I've read many articles, and it sounds like the $400-per-child-under-17 checks that were set to go out at the end of July may now just be going to lower-income households. What's your understanding of the latest news on this?

My understanding is that it's going to the low-income working households, and the high-income married households.

It has a funny smell to it, as usual. It sound like if you fall in the middle, you're doomed.

The details here

in brief, works out to about $1000, average, to middle income about 93,000 to the wealthiest tax payers, nothing to those who don't pay taxes.
Post was edited to remove a long string of page deforming characters.

[This message was edited by Karrow on 07-13-03 at 05:46 PM.]

I believe that, initially, the new plan was to send the credit checks only to the higher income brackets (because they pay the most in taxes, but then they also make the most), leaving out the lower incomes entirely. That was a provision that was snuck in at the end, in my understanding. Once the plan was approved everyone was like "oh dear, will you look at that" and went about trying to fix it. So now credit will go to lower income households *as well*. I am not sure about middle class, but I believe that those who do not pay taxes at all will not be getting a credit, either.

My husband paid 9,000 dollars in federal taxes for 2002, so after paying taxes like that, we should be qualified to get some of it.
I really don't see the point of a tax credit, myself.

The tax credit for children has been increased, retroactive to Jan. 1, 2003.

These checks are an ADVANCE on any refund you may be earning on next year's returns. If you get $400 now, and would have recieved $700 on next year's returns, you will get $300 then.

Honiluv, do you have dependant children? I only ask, because I don't think I have ever seen you make mention of them here. If you have no dependant children, you and your husband will not be getting any check for this tax credit.

No Yankees, both of my kids are finally on their own. I was thinking this was the same tax credit as we had before. But, now I see, it only involves children.

I don't see any reason to juggle it around, to make it seem like it's a good deed.

There is already a "child tax credit" on the books. It amounts to $600 per child in any family of any income. President Bush is proposing increasing this credit to $1000, and the refund you're talking about is the difference, retroactive as Yankees15 stated.

(Notice that there's no need to make it retro, though. All they have to do is make it a law, and you can take advantage right away. The reason it's "retro" is to justify sending out checks NOW rather than making you wait for the end of the year.)

THERE IS A SECRET WAY THAT THIS HIGHER TAX CREDIT BENEFITS POOR PEOPLE THAT NO ONE WANTS TO TALK ABOUT:

Poor people have a back door called "ADDITIONAL child tax credit. When you make so little money that you no longer even owe taxes, you might qualify for the "additional" version of the "child tax credit" (you have to have kids to qualify).

Every year, I give away the IRS's money using this credit. It's great! Because it's attached to the "child tax credit" (a NON-refundable credit), and because it's classified as a refundable credit itself, poor people can actually get money back that they never paid in, and now that the amount is $1000 (up from $600), it looks like I'm going to be giving away a lot more!

(Back in March, I used this and EIC to give a single mother of twin daughters a refund of over $6000 she never knew she was entitled to. That girl was still smiling big several weeks later when I ran into her at her office! This year, it'll just get bigger.)

So don't tell me the poor aren't benefitting! Everyone gets this one!

That's crazy. It's all so convoluted. My head is spinning. I'm moving to Sweden. Bye.

http://www.irs.gov/newsroom/article/0,,id=109816,00.html

(IRS news release on the subject. Refer to the "FS-2003-13" link and read example #3 toward the bottom for how low income people get a refend check, too.)

Wait for me, nic....I can't make out any of this

I'm not sure what you are saying, Mahal. I suppose I would be qualified as 'poor' but I'm not getting any special credits that I know of. We used the earned income credit for our daughter last tax season, but since she will be turning 17 in July, we can no longer use it.

Is this what ya'll are talking about?

As soon as your daughter turns 17, you don't get either of the child tax credits. I think that means you won't get a refund check, either. You might be able to claim EIC, though.

(As for the long explanation, sorry about that, but taxes are that way. Just understand that poor people aren't being left out. That's political BS. Leave taxes to the tax people.)

No, I believe that. I was aware that we wouldn't be able to use the EIC after she turned 17. It's okay, I'll just send her on her way, she's no longer useful to me heeheehee

Thanks for clarifying though. Are you an accountant? (just wondering, you seem really smart about this ) Not that you're not smart about other things, but really smart about this. Well other things too, but you know what I mean, right?

I'm gonna shuddup now

I used to be. Now I just volunteer for the IRS during tax season each year.