Yardley CPA Posted February 11, 2009 Report Posted February 11, 2009 I have a client who is divorced and, as part of the divorce decree, is entitled to take his daughter as a dependant every other year. He did not take her as a dependant last year, but is entitled to do so this year. When figuring the Recovery Rebate Credit, I used the irs website and verified that he did not qualify for any stimulus payment last year. His ex wife, who took their daughter as a dependant last year, also did not qualify because her income level was too high. In completing the worksheet for the Recovery Rebate Credit, it automatically shows his daughter as a "qualifying child" (since she is listed as a dependant this year) and that results in a credit of $400. Is that correct...is she a qualifying child this year? Even though she was included on her mothers return last year? Just not sure about this one. Thanks! Quote
jainen Posted February 11, 2009 Report Posted February 11, 2009 >>the worksheet for the Recovery Rebate Credit<< The stimulus payment was based on the 2007 return. The Rebate Credit is based on the 2008 return. Since they use different facts, it is not surprising they produce different results. Quote
mcb39 Posted February 11, 2009 Report Posted February 11, 2009 I have a client who is divorced and, as part of the divorce decree, is entitled to take his daughter as a dependant every other year. He did not take her as a dependant last year, but is entitled to do so this year. When figuring the Recovery Rebate Credit, I used the irs website and verified that he did not qualify for any stimulus payment last year. His ex wife, who took their daughter as a dependant last year, also did not qualify because her income level was too high. In completing the worksheet for the Recovery Rebate Credit, it automatically shows his daughter as a "qualifying child" (since she is listed as a dependant this year) and that results in a credit of $400. Is that correct...is she a qualifying child this year? Even though she was included on her mothers return last year? Just not sure about this one. Thanks! The answer is yes to the qualifying child if she is under 17, and the mom does not have to pay it back. It should be $300 for the child. Did he only receive $500 for himself last year that he is receiving an extra $100 now? Not unusual, just curious........... Quote
Yardley CPA Posted February 11, 2009 Author Report Posted February 11, 2009 The answer is yes to the qualifying child if she is under 17, and the mom does not have to pay it back. It should be $300 for the child. Did he only receive $500 for himself last year that he is receiving an extra $100 now? Not unusual, just curious........... MCB...in checking the IRS site, it indicates he received zero last year, that he didn't qualify. Quote
mcb39 Posted February 11, 2009 Report Posted February 11, 2009 MCB...in checking the IRS site, it indicates he received zero last year, that he didn't qualify. But, the question is, does he qualify in 2008? He should get $300 for child who is his dependent this year. If you check the box for child at the top and do the rest of the sheet correctly, he should get a Rebate credit on line 70. I have had so many of these. Many got partial or none last year but qualify based on 2008 return. Just did one last night where the wife was her parents' dependent last year because she was still in school. Neither the parents nor the girl got a stimulus for her. This year, she is married and working (a lot). Do the numbers and she receives $600 based on her 2008 return. New husband got his $600 last year so he doesn't get any this year. (Clear as mud, huh?) Quote
RitaB Posted February 11, 2009 Report Posted February 11, 2009 I have had so many of these. I'm glad to hear this. I saw (at least I think I saw) that IRS estimated that 3% of returns would have RRC. I have had way more than 3%. Quote
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