Stimulus Rebate and Dependents
This entry was posted on 3/18/2008 10:57 PM and is filed under uncategorized.
People claimed on another's return do not qualify for the Stimulus Rebate. When deciding if parents should claim their child for one last year, the Stimulus Rebate should be considered. There are no age limits on the Rebate that I am aware of. We often compare the total tax a family would pay two ways. With them claiming their child and without them claiming the child. This often occurs when children are of college age. The potential $600 that they could get, if they have enough income, should be considered when figuring who should claim the child, MAYBE.
Part of my uncertainty here is caused by what I call the 2008 Make Up filing. I expect that those who missed out on this May's payment will still have chance at getting it later. According to the IRS, "If you're not eligible this year but you become eligible next year, you can claim the economic stimulus payment next year on your 2008 tax return."
So, if a child aged 18 is claimed by their parents for 2007, can they next year when filing their 2008 return, in effect claim that they are entitled to their $600, because they actually claimed themselves on their 2008 return, the period to which the Stimulus Rebate is tied to? If this is allowed, the parents can benefit from claiming them for one more year, and they can get the rebate. This is different than the rule that says, dependents can't get the rebate. I am not offering an opinion about whether this will be possible? I am asking for my readers comments on it.
