bmcper 
CEO/Auditor
Posts: 262
(10/22/03 5:33 am)
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Tax Changes For Year 2003
CHILD TAX CREDIT
If you have children who are under 17 as of the end of the tax year, you can get a $1,000 tax credit per child on your tax return. With the passing of the Jobs and Growth Tax Relief Reconciliation Act of 2003, this amount increased from $600. This increase is in effect for 2003 and 2004.
Because this is a credit, not a deduction, you get to take those dollars right off your tax bill. That makes this much better than a deduction, which would just reduce the income you use to determine taxes. And the credit does not affect the exemptions you take for dependents. The credit is in addition to your exemptions.
Rebate checks were sent out for the 2003 increase in the credit, starting in July 2003; the checks were based on 2002 tax returns filed in 2003.
A qualifying child is:
• Under age 17
• A son, daughter (or other descendent), stepchild, or eligible foster child
• Allowed as a dependent of the taxpayer
• A U.S. citizen or resident
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