<p>thump, if the kids are not in a public instate college, why don’t you declare them independent? By being “independent” means that you will lose their deduction ($850/person) but that should be about all. See tax expert or tax programs. We should have done that but didn’t occur to me because we still treated him as a DS and he really was a adult-DS.</p>
<p>Our companies health insurer uses the dependent status of our kids on our tax return as proof that they should be insured by them. Just a heads up to check.</p>
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<p>DD is an undergrad. She is not independent for either fafsa or taxes. DS is independent for finaid but we provide far more than 1/2 of his support. He’s not independent for tax purposes. AND both are on our health insurance (minimal cost to me and both need the coverage for health reasons), and our auto insurance as well. Independency for tax purposes drops them from both insurance coverages (and homeowners now that I think of it…) as well. </p>
<p>The financial advantages to us exceeds $300, but you kwim…it’s just a double whack.</p>
<p>Sax, I work at a medical office and that’s true. We had a rejection the other day because the student had dropped out, never said anything, but wasn’t covered anymore because he wasn’t considered a “dependent” without it. The extra time on mom and dads insurance is usually whiile you are in school and I see many students scurry about that last year to get things done before it runs out.
This is how the “dependent” status for the rebate was explained on a money/tax site:
Many taxpayers are wondering who’s going to get the rebate checks for their kids. “Child” for the purposes of the tax rebate means any child under age 17 who is related to you by blood, marriage, adoption or foster arrangement and whom you can claim as a dependent. This is the same definition of a child as the one used for the child tax credit. What this means, basically, is to get the extra $300 per child rebate, you will need to claim that dependent on your 2007 tax return. If you are not eligible to claim the child, then you won’t be eligible for the extra rebate either.</p>
<p>Debruns…that is what I thought regarding dependent “children”. BUT what about those dependents over 17 who are still declared as dependents BUT also had incomes of over $3000? Are THEY eligible for the rebate, especially since the parents can’t get it for them.</p>
<p>Here in Ohio, we can’t just suddenly call a student independant, and automatically it becomes so. Here, a student has to show how he has supported himself for a certain time( I think its a year) and must meet a couple of other criteria. The point of our law is to prevent those who might defraud the state, and society, by unfairly gaining advantages from falsely claiming a student independant who is actually supported by parents.</p>
<p>Ah, but there are some cases where it is right on the line- with my oldest, she will for sure be, independent this year, but was quite on the border last year- we would have to really run the exact numbers to determine the 50% thing, so I guess we should so she can get her own rebate.</p>
<p>Did any one read an example which shoes the amount over $300 and up to $600 being EQUAL to the amount of tax liability? One site where i saw them giving examples showed a person with taxes owed of $411 and a rebate of $411- is that how it works?</p>
<p>My understanding is that (if you qualify earned incomewise and as a qualifying taxpayer) it is a minimum of $300 to a maximum of $600. So if your tax is between $300-$600 you would get the actual amount. If your tax bill was $50 you would get $300, if you paid $411 you would get $411 and if you paid $800 you would get $600.</p>
<p>Another thing we are trying to figure out is the ‘earned income’ qualification. My daughter earned a little under $3000 but her taxable scholarships are included on the tax form as earned income. Not sure if that would qualify her or not (if we were not claiming her as a dependent).</p>
<p>Thumper, my son made under 4,000 working over the summer (3600.00) He would get about a 330.00 refund if he files. I know he can and still have me claim him on our taxes and if they send him a rebate, they send him a rebate. They said on TV last night, if they make a mistake and send you too little, they will correct it, but if they send out a check too large,etc, you don’t have to give it back. Sounds okay to me. : )</p>
<p>The link that swimcatsmom had posted has expired. Does anyone have a link to the exact wording of what was passed? Thanks much.</p>
<p>here you go:
[Search</a> Results - THOMAS (Library of Congress)](<a href=“http://thomas.loc.gov/cgi-bin/query/z?c110:H.R.5140:]Search”>http://thomas.loc.gov/cgi-bin/query/z?c110:H.R.5140:)</p>
<p>You have to select the blue highlighted bit in number 5. The original link I posted was the page that takes you to which apparently is a search result so expires.</p>
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<p>My daughter had NO withholding taken out of her paychecks…no federal or state taxes withheld. If she is not eligible for this rebate she does NOT have to file at all. </p>
<p>At this point, since I can’t seem to get an answer anywhere (even my accountant doesn’t know), we’ll just freefile her taxes. It will certainly look stupid to file when she has no refund or need to pay…and is under the threshold for income and had no interest income or anything else. BUT nothing ventured, nothing gained, I guess.</p>
<p>I DID find out that kids need to be UNDER 18 to count as “children” for the purpose of this rebate…so the two college “children” don’t “count”. Ridiculous.</p>
<p>I agree, I feel the students should count until the graduate or are 22. But, we aren’t doing it…but who knows, they might change it. I heard an accountant at the gym say they are denying the BIGGEST spenders money…parents will save, the students wont. (has a point!)</p>
<p>I doubt they will change it. The Bill has already been passed by the Senate and congress so it is too late :(</p>
<p>I came across this link that says students claimed as dependents will not get the tax rebate - grr. </p>
<p>[How</a> to make sure you get your rebate check fast - USATODAY.com](<a href=“http://www.usatoday.com/money/perfi/columnist/block/2008-02-11-rebate_N.htm]How”>http://www.usatoday.com/money/perfi/columnist/block/2008-02-11-rebate_N.htm)</p>
<p>I thought the whole idea was to stimulate the economy. Believe me, my college student is a lot more likely to spend a rebate than her 83 year old grandmother who rarely leaves the house.</p>
<p>I must admit my college student is really tight with her own money - she would probably save it. The non college student now - it’s already burning a hole in his pocket.</p>
<p>It’s too bad that you can’t claim them as a tax credit over 19, and they can’t get a check, but they can still be a dependent. Free money, so you can’t complain much, but it does seem like it wasn’t thought out well as a “stimulus” package.
My son would also save it, but he’s in the minority, always an overly logical kid.</p>
<p>Thanks again.</p>
<p>The way I read it, if the child is claimed as a dependent, the parent gets the rebate but not if they are over 18?</p>
<p>So my 17 year old son, who made $4600 and filed won’t get $300 but my 20 year old daughter who made $5000 and filed will get the $300?</p>
<p>Edited to ad that I guess she won’t get it either. If my son turned 17 in 2007 I wonder if I will get $300 for him?</p>