Please help! Question regarding president Bush's new tax credit for each child?

Ok if it gets passed you will get $300 back for each child. My question is what yr is it for 2006 or 2007? And do you need to "file" anything or will it come to you automatically? The reason I ask is i'm divorced with one child that I get to claim on the even yrs and my exwife claims on the odd yrs.

Please help! Question regarding president Bush's new tax credit for each child?
Individuals who pay income taxes would get up to $600, working couples $1,200 and those with children an additional $300 per child under the agreement. Workers who make at least $3,000 but don’t pay taxes would get $300 rebates.





The first rebate payments could begin going out in May, and most people could have them by July, though the IRS will already be overwhelmed processing 2007 tax returns.





The rebate is not taxable at the federal level, and it's unlikely the states would tax it, though that's not entirely clear at this point.
Reply:To answer your question, the rebate check will be based on your 2007 tax return. You do not need to fill anything out like any extra forms....they will input the info in the computer and a check will be generated based on your tax return info. So your xwife would probably get the $300 for your child if she is claiming him on her 2007 return.
Reply:Just a comment on the previous answer...if this is treated like the rebate of 2001, it is very much taxable as income the next year. There will actually be a new line on the 1040 in order to enter the amount you got. As far as the state taxing it that just depends on the state you live in, it was counted as income in NE in '01 though so I expect to have to claim in as both federal and state income next year.