Tax Rebate

[Bacchus]

Advertisement - Members don't see this ad

We have all heard about the tax rebate that is going to be going out in May and well into the summer. That being said, how are dependent students going to fair? I made over 3000 dollars last year and paid income taxes but I am afraid I will not qualify for the rebate because my parents still claim me on their taxes. I was reading an article on MSN and it addresses a lot of scenarios but not this one: the dependent student that has to work.

I could always ask my parents for the $300 they're getting in addition to the other money, but they'd just laugh at me and swear its not a child credit. 🙄

Any thoughts?

 

[UserNameNeeded]

I'm wondering about the Stimulus package's rebate checks, too.

I made ~$3,000 last year from dividends/interest (didn't work at all/full time student)...so I'm wondering if I need to file a tax return at all. I thought the cut-off to file was if you made over $5,xxx. I heard that everyone should be getting at least $300. If you actually pay taxes, you get $600.

Married couples can get $1,200 and $300 for each child. My parents still claim me as a dependent-- but I'm 25 now. Are they going to get $300 on behalf of me or should I file separately?

I hate the US tax system.

 

[etf]

I'm wondering about the Stimulus package's rebate checks, too.

I made ~$3,000 last year from dividends/interest (didn't work at all/full time student)...so I'm wondering if I need to file a tax return at all. I thought the cut-off to file was if you made over $5,xxx. I heard that everyone should be getting at least $300. If you actually pay taxes, you get $600.

Married couples can get $1,200 and $300 for each child. My parents still claim me as a dependent-- but I'm 25 now. Are they going to get $300 on behalf of me or should I file separately?

I hate the US tax system.

if you had $3000 in unearned income (dividends/interest), i'm pretty sure you have to file.

 

[UserNameNeeded]

But I don't see how I would be owing any takes, etf. My unearned income minus my tuition deduction = a negative number. That's what's confusing.

I have no short term capital gains and I think I would be in the lowest tax bracket.

 

[TMP-SMX]

I'm wondering about the Stimulus package's rebate checks, too.

I made ~$3,000 last year from dividends/interest (didn't work at all/full time student)...so I'm wondering if I need to file a tax return at all. I thought the cut-off to file was if you made over $5,xxx. I heard that everyone should be getting at least $300. If you actually pay taxes, you get $600.

Married couples can get $1,200 and $300 for each child. My parents still claim me as a dependent-- but I'm 25 now. Are they going to get $300 on behalf of me or should I file separately?

I hate the US tax system.

You are officially an independent and they can't claim you anymore. If you were a dependent then you wouldn't have been able to file for the tuition deduction. Since you are an independent you probably can file the tuition deduction up to $4000. If you were not 24 at the end of the year you are an independent.

As for my case, I'm a bit confused. If I have this correct my parents will be able to claim the tuition deduction for me if I paid tuition with student loans. Here is what Publication 970 says, "Paid with borrowed funds. You can claim a tuition and fees deduction for qualified education expenses paid with the proceeds of a loan. You use the expenses to figure the deduction for the year in which the expenses are paid, not the year in which the loan is repaid. Treat loan payments sent directly to the educational institution as paid on the date the institution credits the student's account."

Anyway, can someone explain what the rebate is all about? I understand details are sparse just quickly looking at news stories about it, but if I made about 3400 last year, already filed my taxes, and I will also be claimed as a dependent. I am getting about 160 back on my taxes from the feds. So what does the rebate mean for me personally.

 

[UserNameNeeded]

Anyway, can someone explain what the rebate is all about? I understand details are sparse just quickly looking at news stories about it, but if I made about 3400 last year, already filed my taxes, and I will also be claimed as a dependent. I am getting about 160 back on my taxes from the feds. So what does the rebate mean for me personally.

People with earned income of at least $3,000 last year who did NOT pay income tax will get $300 (single) or $600 (married).

Single, income taxpayers will get $600 rebates.

Married couple, income taxpayers will get $1200 rebates.

All of the above will get additional $300 rebates per child.

The rebates start to phase out at $75,000 (single) and $150,000 (married). I remember reading from an article the other day (can't find it now) that you won't be even getting a partial refund if you make over ~$95,000 (single) and ~$180,000 (married).

TMP-SMX, I *think* (not 100% certain) that in your case, your parents should get $600 + $300 for you. If you had paid income taxes on your income, you'd get $600 but, since you didn't, you'd get $300. Though someone with more understanding of this should answer, that's my best guess from what I've read.

 

[Bacchus]

User I follow what you said. But, for those of us that are dependents and don't get that $4000 deduction because our parents do, I feel that we may not get the rebate.

I don't see the IRS/Federal Government paying a child credit to parents and then paying said child a credit because they have worked and made a "substantial" amount of money. I really could use the credit so hopefully the government does more than I expect it to. 😉


TMP: In regards to your post, I am assuming that since my parents co-signed my educational loan (which went to tuition costs) they can deduct the $4000, correct?

 

[elfish]

I understand the different scenarios from the article on MSN and on here, but am SUPER confused about my own situation:

My parents are divorced. I graduated last May and live with my father. He is disabled and doesn't work, he will not be filing taxes this year. Technically, however, I am his dependent (but he's not filing taxes so I don't think that matters). Anyway, I earned a little over $3000 in 2007, and will NOT be filing taxes since I didn't have taxes withheld in my pay, and I don't meet the threshold of $5,xxx. Also, according to this new tax rebate thing, allegedly I qualify to get $300 --

My question is, how do I get this money? Is it going to magically come in the mail? Do I have to file taxes to get it, even though technically I DON'T have to file taxes?? I don't even know whom to ask about this -- should I call the IRS?

If anyone that is more knowledgable can offer any suggestions, I would greatly appreciate it!

 

[elfish]

bump😳

 

[UserNameNeeded]

This is the most in-depth article I've read, showing several scenarios:

http://biz.yahoo.com/ap/080126/stimulus_rebate.html

People are not going to be getting $300, $600, $1200 or whatever amount-- those are the maximums. The refund amounts all depend on how much taxes you paid last year (if you qualify to get a rebate).

The only question I have now is do "children" include full time students in the mid-20s in the eyes of the IRS?

 

[Sol Rosenberg]

This is the most in-depth article I've read, showing several scenarios:

http://biz.yahoo.com/ap/080126/stimulus_rebate.html

People are not going to be getting $300, $600, $1200 or whatever amount-- those are the maximums. The refund amounts all depend on how much taxes you paid last year (if you qualify to get a rebate).

The only question I have now is do "children" include full time students in the mid-20s in the eyes of the IRS?

By children, I think they mean dependent children. So, if you have 20-something dependent children, then you will receive the additional credit.

 

[elfish]

This is the most in-depth article I've read, showing several scenarios:

http://biz.yahoo.com/ap/080126/stimulus_rebate.html

People are not going to be getting $300, $600, $1200 or whatever amount-- those are the maximums. The refund amounts all depend on how much taxes you paid last year (if you qualify to get a rebate).

I don't know what to make of that, since my local paper has printed 2 Associated Press articles stating that if you made a minimum of $3000 last year, and are not required to file taxes, you are going to get a flat $300. My only question is how to go about getting it.

This is a direct quotation from the article you sited:
"People who do not make enough to pay taxes but had at least $3,000 in earned income would get $300."
...
"Eligible people would get at least $300."

This says nothing about the taxes I paid, but rather the money I made.

 

[bjackrian]

And now today, there's a new plan coming out of the Senate that would give essentially everyone $500 regardless of income level (presumably meaning a refundable tax credit).
http://www.washingtonpost.com/wp-dyn/content/article/2008/01/28/AR2008012802431_pf.html

 

[UserNameNeeded]

Baucus's proposal would actually increase the size of payments to the poorest workers, to $500 from the House's $300, and would include poor seniors by extending eligibility to anyone who receives $3,000 in Social Security income. But middle-income taxpayers would pay a price, losing $100 in payments to individuals or $200 in payments to couples. Almost all taxpayers would still receive $300 per child younger than 17.

Bastards. So none of us students (who don't work) aren't going to get anything under each plan.

 

[Sol Rosenberg]

.

 

[mshheaddoc]

We're getting all of our taxes back so I hope they don't write that into these stupid bills.