Child tax credit checks could miss public schools’ opening

Parents waiting for their children’s tax credit checks in time for the opening of public school opening on Tuesday got a bit of sad news yesterday as the Fitial administration said the checks could come in later.

“I am disappointed that the check is not in the mail yet. I’m expecting a check of some $1,500,” said a 44-year-old father of two from Navy Hill.

Like many parents, he has been relying on the child tax credit to buy school supplies for his two children—one enrolled in a public school and one enrolled in a private school that opened in August.

Another father of two, from Dandan, said this would only be his family’s second time to receive a child tax credit check he estimates to be $800 for one of his two children.

Acting governor Eloy S. Inos told Saipan Tribune yesterday that some $4.5 million in child tax credit checks could be out in a few weeks.

Senate President Paul Manglona (Ind-Rota) also wrote yesterday to Finance Secretary Larrisa Larson, inquiring about the release of the 2010 child tax credit checks for qualified families in the CNMI.

“The 2011-2012 school year is right around the corner and many families are in need of financial assistance. The federally funded child tax credit will be a great help as they prepare for the upcoming school year. Consequently, I would like to follow up on the status of this tax credit and request for its expedient release,” Manglona told Larson.

Back in July, the administration said it’s looking at the release of some $5 million to $6 million in child tax credit checks in time for the school opening in September. Public schools will open on Sept. 6, a day after Labor Day. Private schools opened in August.

Yesterday, parents started inquiring whether the checks are already in the mail, considering that this will be the last weekend before public schools open.

The federal child tax credit is available to taxpayers who have a child under the age of 17. It is worth up to $1,000 per “qualifying” child.

In general, a “qualifying” child is any individual for whom the taxpayer can claim a dependency exemption and who is the taxpayer’s son or daughter, stepson or stepdaughter, brother or sister, or eligible foster child.

Some $7 million in tax rebate and refund checks are expected to be released later this year, and it may be in time for Christmas shopping. The CNMI government’s financial problems make it harder to release tax rebate and refund checks earlier than expected.

The Fitial administration said the rebate and refund trust account is almost empty, and that priority goes to the delivery of critical services and payroll. Payroll is almost always delayed for non-critical government employees since June 2010 because of cash shortage.

A refund is for tax that has been overpaid or incorrectly paid, and is returned to the taxpayer. It is different from the rebate, which is for tax properly paid and is subsequently returned to the taxpayer under a rebate provision.