We were supposed to get back 507 dollars from federal. We only got back 107. They stated we received the 400 from the child tax credit. Is this making sense to anyone?
I understand the $400. You go that earlier in the year to compensate for the extra withholding once the child credit increase was approved. What I don't understand is the $107. The tax credit is an even $1000 per child, isn't it? I got a $600 credit on my kid.
Buckmine,
If you received a $400 check last year, it is supposed to be deducted from your 2004 tax refund. It sounds like maybe you didn't enter it in your tax form. The $400 was an advance from your 04 refund so it is taken off the top.
I did my taxes in Turbo Tax and there was a place to enter the amount of the advance child tax credit received last year so that it could be calculated in. It sounds to me like you might have missed this step.
Stickemup is right. I also got back $400 less than i thought i was supposed to. When i called checking on my refund they told me they had found a mistake on my tax return and it would be corrected and my refund would be less. Then i recieved a letter about a week ahead of my refund explaining that i had missed filing the tax credit on my 2004 return which was right, i didn't file it because i didn't know i had too. Good ole uncle sam fixed it up for me though. What we really got last year when we recieved the checks was a loan to be payed back this year.
Okay, same here. I did not know this to be the case. So why did it look good to my wife and I that we were getting 400 from the govt? Only to have it not here in April??????????
Okay, same here. I did not know this to be the case. So why did it look good to my wife and I that we were getting 400 from the govt? Only to have it not here in April??????????
I'm a Bush supporter--no apologies, but this was a bribe for the voters. Actually, the extra cash in the system probably helped the economy some too.
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RE: Child tax credit
You still received a $1000 dollar tax credit. However, when filing your taxes you were only eligible for $600, as you received $400 up front.
If you listed the entire credit, $1000, you need to subtract the $400 off your refund. Go to the IRS website, they explain the entire process (early refund and tax procedures) quite clearly...
So in essence, you did receive a $507 refund---you were just prepaid $400 of it by the government...
This wasn't a bribe...it was you getting your money back sooner than normal...which allowed you to spend for Christmas, etcetera, and allows the government to have a lower overall payout now to taxpayers.
With only $107 back, you should feel lucky. Your taxes & deduction are about perfect, as you get most of your money to spend during the year and still get a little at the end. Most accountants will tell you that at tax time, you want to be within +/- $100, so you get to enjoy (ie interest)---rather than the government---your [/code] money all year...
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Child tax credit
