Your check may be in the mail

On Friday, July 25, the first of some 25 million checks were mailed to taxpayers by the federal government.  The checks are an advance payment of the 2003 increase in the child tax credit provided by this year's new tax law.

The Jobs and Growth Tax Relief Reconciliation Act of 2003 increased the maximum credit amount from $600 to $1,000 per qualifying child under age 17 and directed that taxpayers receive the increase this summer, rather than waiting until they file their 2003 returns.

"As long as we have a good mailing address, taxpayers don't have to do anything to get their checks," says IRS Commissioner Mark W. Everson.  Taxpayers should, however, notify the Post Office if they've moved since filing their last return.  "The IRS will figure the advance amount based on each taxpayer's 2002 return," he said.

The initial checks are going to those who filed early enough for the IRS to process their returns by early July.  The mailing date depends on the last two digits of the taxpayer's social security number.

• 00-33 July 25 mailing

• 34-66 August 1 mailing

• 67-99 August 8 mailing

People who filed after April 15 — for example, those with extensions — will get any advance payment they are entitled to receive after the IRS processes their 2002 return.

Taxpayers who did not claim the child tax credit last year are not eligible for an advance payment, even if they will be able to claim the credit on their 2003 returns.  For example, if your only child is born this year, you will not get any advance payment, but you may qualify for the credit when you file your return next year.

The IRS is also sending notices that contain the advance payment figure to eligible taxpayers.  Save your notice with your other tax records for 2003.  You'll need this information when you file your 2003 tax return.