Stimulus

[gman]

Lets say child is claimed on parents return in 07 and they recieve stimulus payment for him in the amount of $300.00
On 08 return he is claimed on grandparents return. Child would not be eligible on grandparents return for additional 300.00 rebate, would he?

[David1980]

He would indeed. $600 per child becomes very possible by changing who claims the dependent - so this will happen pretty commonly in divorced/separated parent situations where the exemption is alternated each year. Just like the extra child tax credit in .. 2001/2002?

RRC is based on 2008 data. ESP was based on 2007 data. RRC is reduced by ESP, but amount is calculated off different year data.

[gman]

taxbook

Thanks, is this info in the taxbook??

[KBTS]

The RRC is found on page 11-3 and a worksheet to calculate is on page 16-18.

[DaveO]

When a child drops off one return and pops up on another expect the IRS to take a look especially if EITC is involved. I've had two cases recently. In the first the couple seperated and the man claimed one child and his nephew. The IRS denied the exemption and CTC. After going to appeals we got it back. In the other a couple had been claiming their grand daughter since birth. They seperated and the wife claimed the child, HOH and EITC which was all denied. I'm in the process of asking for audit reconsideration now to try and get that reversed.