Saturday, April 7, 2007

What If Your Tax Credit Is Changed After You Received Your Refund

Here’s what it can happen in case your tax credit award increase due to a change in your situation, which also increases your claim and if you let us know about this during the year:

- There is an extra tax credit to be paid for up to three months before the adjustment was made in a lump sum, and

- You need to increase your award for the rest of the year.

Should your income fall and you let us know about it during the year, you will be paid any extra tax credits that you were supposed to pay from the beginning of the year or when you first became entitled to tax credits. Also you will be paid an extra amount as a lump sum provided that you realize that you were paid less than the amount you actually due that occurred in the change in circumstances or income.

In case your entitlement or the increase of more than $2,500 in your income occurs and it is reduced due to the tax credit award that went down, and you have already let them know about it during the year, they will reduce your tax credit award from the date of the change so that it can be paid the right amount for the whole year. Still it may happen that we pay you as much or even more than you were actually entitled to get from us that year. In this case we won’t be paying out any more tax credits for the rest of that year. Still in case there was no money due to you, you’ll be asked to pay backall the tax credits that were paid to you. In case there was too much tax credit paid during the past year you can return it either by a direct payment or by deducting it from a continuing tax credit award.