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Home / Services / Calculators / Newsletter / Archives Child Tax Credit The IRS has started mailing out the $400 Child Tax Credit checks on July 25th and will continue mailing them for the next two weeks to taxpayers who have already filed their returns for 2002. Taxpayers who file by October 15th will receive them as soon as their returns are processed. All other taxpayers will have to wait until they file their 2003 returns to get the credit. The IRS has announced that taxpayers who receive the checks in error will not be required to return the money. This will affect divorced taxpayers who claim the exemption of their children in alternate years. The parent who claimed the child last year will receive the check this year. The parent who did not claim the child last year will be able to claim the credit on their tax returns this year. Now that we received our check, what should we do with it? We can use it to purchase something. We can save it. We can pay off debt. Here are a few ideas that can have a longer lasting effect. We can start a college investment program with the check. A contribution to the Ohio Tuition Trust will allow you to purchase college credits at today's prices for courses that will be taken 18 years from now. This will give you a deduction on your Ohio tax returns. We can start an investment program in a good mutual fund or even a tax-exempt bond fund. These funds should grow to many times the initial amount invested. We can use this check to fund our retirement accounts. This will generate tax deductions and credits and will grow to provide for a better retirement. If we choose wisely, we can enjoy the benefits for many years to come.
(August, 2003 Newsletter)
James E. Newland, CPA 939 Center Road Eastlake, Ohio 44095 440-951-9799 |
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