Recovery rebate credit

[L.S.]

I just want to make sure I am figuring this credit correctly. In 2007 client was hh with one dependent, college student, taxable inc of $11,943 but with educational credits - not tax due so rec'd $300 stimulus check. In 2008 client is filing single with no dependents - college student graduated. Taxable income of $15,425, no credits so tax due of $1,913. In figuring the worksheet it shows credit of $300. I believe this is correct, even though there are not qualifying children in 2008. Am I correct?

Thanks

[Tax Prep by Deb]

I just want to make sure I am figuring this credit correctly. In 2007 client was hh with one dependent, college student, taxable inc of $11,943 but with educational credits - not tax due so rec'd $300 stimulus check. In 2008 client is filing single with no dependents - college student graduated. Taxable income of $15,425, no credits so tax due of $1,913. In figuring the worksheet it shows credit of $300. I believe this is correct, even though there are not qualifying children in 2008. Am I correct?

Thanks

The 300 would have nothing to do with a qualifying child, it has to do with the tax payer's change in taxable income. The tax payer would not have gotten anything last year for the child claimed because age was a factor, 17 I believe!

Deb!

[L.S.]

The 300 would have nothing to do with a qualifying child, it has to do with the tax payer's change in taxable income. The tax payer would not have gotten anything last year for the child claimed because age was a factor, 17 I believe!

Deb!

Yes, the taxpayer did get the stimulus check last year - $300. so does the taxpayer get an additional credit this year?

[TAXBILLY]

The stimulus payment was based on the 2007 tax return figures but it was actually an advance from the actual rebate which is computed on the 2008 return.

Since he had no tax in 2007 but did have at least $3000 in qualifying income, he received $300.

His actual situation in 2008 is he has tax of more than $600 and so he would be entitled to $600 but since he already received an advance of $300 he would now get the difference (600 -300=300).

If it had been the other way around and he received more than he is entitled to, he gets a break and does not have to pay it back.

taxbilly

[L.S.]

The stimulus payment was based on the 2007 tax return figures but it was actually an advance from the actual rebate which is computed on the 2008 return.

Since he had no tax in 2007 but did have at least $3000 in qualifying income, he received $300.

His actual situation in 2008 is he has tax of more than $600 and so he would be entitled to $600 but since he already received an advance of $300 he would now get the difference (600 -300=300).

If it had been the other way around and he received more than he is entitled to, he gets a break and does not have to pay it back.

taxbilly

Thank you very much. When I do the x-college student's return this year, since he did not get a stimulus check last year as he was a dependent, will he be entitled to any credit this year?

[joanmcq]

If he has wages of at least 3000, then yes.

[RitaB]

If he has wages of at least 3000, then yes.

Yes, or other qualifying income. (I think that's what you meant, but someone else might not.)