2003 Advanced Child Tax Credit

[Kurly]

In 2003 the IRS mailed to many folks the Advanced Child Tax Credit. I believe the amount was $400 for each eligiable dependent allowed for Tax year 2002. The IRS web site no longer maintains the link to find the actual amount paid to taxpayer. Would I be doing the taxpayer an injustment by assumeing he received the full amount? he has no recall as to receiving a check (selective memory loss). He has not filed his 2003 tax year return.

Thanks K

[Bees Knees]

The advanced child tax credit of up to $400 per child received in the summer of 2003 was for the 2003 tax return. So later when the 2003 tax return was eventually filed, the up to $1,000 child tax credit was reduced by this $400 amount so that the credit claimed on the 2003 return was $600. If they did not get the $400 advanced payment, then they could claim a credit of up to $1,000 on the return.

The 2003 advanced payment was determined by IRS based on statistics from the 2002 tax return. So for example, if a taxpayer was entitled to a full child tax credit for one qualifying child on the 2002 return, they would get a $400 advanced check in the summer of 2003 to apply towards their child tax credit in 2003.

Obviously, if a 2002 was not filed by the time these checks were issued in 2003, the taxpayer would not get an advanced check, and needed to claim the full benefit on the tax return instead.

My policy has been that if the taxpayer cannot remember, then I go by whether a 2002 return was filed on time or not. If the 2002 return was filed by the normal due date, then I assume they got their advanced check. If the 2002 return was extended to August 15, 2003 and filed by then, I would still assume they got their check. If the 2002 return was extended to October 15, 2003, or filed later than that, then I know they did not get an advanced check. Or if the number of eligible kids changed from 2002 to 2003, I would take that into account also.

[Bill Tubbs]

back then...

If client was unsure and I was unable to access the website at the time, then I just went with the full $1000 credit -- if the client had actually gotten a check, then the IRS adjusted the refund down.

I think the opposite was also true, that if you only figured $600 (assuming client got a $400 check) but the client did not actually receive anything or received an amount less than $400, that the IRS adjusted the refund up accordingly.

Don't know what their computers will do now, a couple years later...

Bill