Tax cut checks in the mail soon

Tax cut checks

in the mail soon

Beginning the last week

of July, eligible Georgia taxpayers who claimed the Child Tax Credit on

their 2002 tax returns will automatically receive an advance payment of

the 2003 increase in this credit. The Internal Revenue Service estimates

more than 750,000 Georgians will receive these checks.

Taxpayers will

not have to take any action to get this advance payment of up to $400

per qualifying child. The Treasury Department and IRS will perform all

the calculations and automatically mail a notice and a check to each eligible

taxpayer.

"We will

send taxpayers a notice that they will be receiving a check in a few days.

They do not need to call us, apply for the money or fill out a form,"

said IRS spokesperson Eric Erickson. "All the taxpayer will need

to do is cash the check."

The checks

will be based on the child tax credit claimed on the taxpayer's 2002 tax

return. The Jobs and Growth Tax Relief Reconciliation Act of 2003 increased

the maximum child tax credit for 2003 to $1,000 per child, up from $600

for tax year 2002.

The law further

instructed the Treasury Department to provide the difference up to $400

per child as an advance payment to each eligible taxpayer this summer.

The Treasury

Department will issue about 25 million of these checks this year, beginning

with three principal mailings scheduled for July 25, Aug. 1 and Aug. 8.

Taxpayers who filed returns after April 15 for example, those with automatic

extensions will receive their advance payments after the IRS processes

their returns. They should not make any change to their 2002 returns or

remittances based on an expectation of an advance payment check.

The IRS will

send notices to taxpayers July 23, July 30 and Aug. 6, informing them

of their advance payment amount.

The IRS urges

taxpayers to hold on to these notices for their 2003 tax returns. They

will need to take the advance payment into account when determining the

amount of their child tax credit on the 2003 tax return.

Taxpayers who

are not eligible for the advance payment may still qualify for the increased

child tax credit of up to $1,000 when they file the 2003 tax return next

year. For instance, a taxpayer who did not have a child in 2002, but had

one in 2003, would not receive an advance payment but may qualify for

the full $1,000 credit on the 2003 tax return.

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