FROM THE OFFICE OF PUBLIC AFFAIRS

The Conference agreement accelerates the child tax credit from $600 to $1,000 per child effective in 2003 and 2004.  

This year, a typical family with one child will receive a check for $400.  A typical family with two children will receive a check for $800.

Eligible taxpayers would receive an average tax cut of $623 each year as a result of the increase in the child tax credit.

For 2003, the increased amount of the child tax credit will be paid in advance to taxpayers who claimed a child tax credit on their 2002 tax return.  

o Approximately 25 million families will receive checks totaling $14 billion.
o Advance payment checks will be sent out beginning in mid-July over a period of three weeks.

The amount of advance payments will be based on taxpayers’ 2002 filing status and income, as well as the number of children claimed on their 2002 tax return who will still be under age 17 in 2003.