College student 2007 Rebate in 2009?

[Jesse]

If my 20 year old dependent graduates from tech school and is on her own in 2008 when she files in 2009 (for 2008) and has qualifying income for the rebate will she receive the credit?

Or same for the 18 year old highschool student who is still my dependent this year, will they qualify for the rebate next year?

[Roland Slugg]

Mixed results

The 18-yo won't get a rebate of his own, and because he is over 17, you won't get an additional $300 for him either.

The 20-yo will get a rebate IF she has income AND files a return AND you DON'T claim an exemption for her on your return.

[Jesse]

The 18-yo won't get a rebate of his own, and because he is over 17, you won't get an additional $300 for him either.

The 20-yo will get a rebate IF she has income AND files a return AND you DON'T claim an exemption for her on your return.

Roland this is true for 2008 based on 2007's filing. Since the credit is actually 2008's credit that we are receiving early based on 2007's filing is why I ask this question.

Based on 2007's filing, if because of low or high income a person does not receive the full $600 and circumstances change for 2008 he will get the additional credit, correct?

If client receives $600 and circumstances change he should only get $500 nothing needs to be repaid, correct?

If a client is a dependent in 2007 so receives nothing, but is totally self supportive (and all other eligibility requirements met) in 2008 will he receive 2008's rebate when he files in 2009?

Again if I'm understanding this correctly this is 2008's credit taxpayers are receiving early.

[Bees Knees]

If a client is a dependent in 2007 so receives nothing, but is totally self supportive (and all other eligibility requirements met) in 2008 will he receive 2008's rebate when he files in 2009?

That is correct. The only thing that will reduce the 2008 credit on the 2008 tax return is any advance refund received in 2008 based on the 2007 tax return.

For example, son is 16 in 2007, claimed as a dependent on parent's return, parents get an extra $300 based on their son qualifying them for the child tax credit on their 2007 return. If the 16 year old son filed a return in 2007, the son would not get an advance refund because of being claimed as a dependent on his parent's return.

Now we fast forward to the 2008 return. The son is now 17. He runs away from home early in 2008, drops out of school, and joins the circus. Parents can't claim him as a dependent because he supported himself and did not live at home.

He files a 2008 return and gets a $600 refundable credit.

No rule prevents him from doing that, and the parent's do not need to pay back the $300 advance refund they got in the previous year for him.