YES another question re rebate

[GeorgeM]

I have a client that claims her mother as a dependent.

Mother has only SS, can the mother file a return to get refund or will client get the $300 as a dependent ?

[Cathy]

If claimed as a dependent on daughter's return, mother will not get the rebate. Had similar case yesterday. Daughter's tax difference was $800+....vs mother's $300 rebate. Daughter will give mother her "$300" out of her refund....at least she won't have to wait until May!

Cathy

[Cathy]

The following was taken from one of the IRS notices about the rebate....note the last paragraph.

Exclusions

Individuals who file Form 1040NR, 1040PR or 1040SS are not eligible for the stimulus payments. These returns are normally filed by Nonresident Aliens, residents of Puerto Rico and residents of the U.S. Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands (CNMI). Residents of U.S. possessions will be receiving their rebates directly from the possessions.

Also ineligible are individuals who can be claimed as dependents on someone else’s return.

[JohnH]

Did we ever determine whether a deceased taxpayer will receive the rebate?

For example, with tax liability on a joint return high enough to qualify for the $1,200 rebate, but one spouse is reported as having died in 2007, will the rebate be $600 or $1,200?

[Jack from Ohio]

http://www.irs.gov/irs/article/0,,id=177937,00.html

[Cathy]

Did we ever determine whether a deceased taxpayer will receive the rebate?

For example, with tax liability on a joint return high enough to qualify for the $1,200 rebate, but one spouse is reported as having died in 2007, will the rebate be $600 or $1,200?

Good question, John! I haven't been able to find the answer either in any of the IRS articles and have a couple of clients in that situation.

[TAXBILLY]

Remember that the rebate is not for a dependent, but a qualifying dependent child so in the original question client would not get the rebate for the mother.

taxbilly

[JerryH]

What about the 16 yr olds in 2007 that won't qualify a parent for the $300 in 2008? Will parent get $ this year based on 2007 return or will they look forward to 2008.