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Posted by valentino on February 10, 2008, 2:42 pm
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My daughter, grad student, files as single, I don't claim her as a
dependent. Her earned income in 2007 is 5000, cap gains = 20000, takes std
deduction. She ends up with zero tax for 2007 because of tuition and
credits for education.
Questions:
1. does she qualify for 300 rebate?
2. can she/should she not take all the education life time credit this year,
use it next year, thus pay some tax this year to get the 300 rebate. is it
feasible and how do I trick the TurboTax tax to take less than the TurboTax
optimizes for?
thanks.
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Posted by Alan on February 10, 2008, 4:57 pm
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valentino wrote:
> My daughter, grad student, files as single, I don't claim her as a
> dependent. Her earned income in 2007 is 5000, cap gains = 20000, takes std
> deduction. She ends up with zero tax for 2007 because of tuition and
> credits for education.
> Questions:
> 1. does she qualify for 300 rebate?
> 2. can she/should she not take all the education life time credit this year,
> use it next year, thus pay some tax this year to get the 300 rebate. is it
> feasible and how do I trick the TurboTax tax to take less than the TurboTax
> optimizes for?
>
> thanks.
>
She is entitled to $300 because she has at least $3000 of earned
income.
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Condor on February 10, 2008, 11:52 pm
Please log in for more thread options > My daughter, grad student, files as single, I don't claim her as a
> dependent. Her earned income in 2007 is 5000, cap gains = 20000, takes
> std deduction. She ends up with zero tax for 2007 because of tuition and
> credits for education.
> Questions:
> 1. does she qualify for 300 rebate?
Yes, because she has at least $3,000 of compensation.
> 2. can she/should she not take all the education life time credit this
> year, use it next year, thus pay some tax this year to get the 300 rebate.
> is it feasible and how do I trick the TurboTax tax to take less than the
> TurboTax optimizes for?
If she has sufficient tax liability in 2008, she will be eligible to offset
her tax with up to $300 of unused credit. Go ahead and claim everything she
is eligible for on her 2007 tax return.
Condor
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Harlan Lunsford on February 11, 2008, 6:04 pm
Please log in for more thread options Condor wrote:
>> My daughter, grad student, files as single, I don't claim her as a
>> dependent. Her earned income in 2007 is 5000, cap gains = 20000, takes
>> std deduction. She ends up with zero tax for 2007 because of tuition and
>> credits for education.
>> Questions:
>> 1. does she qualify for 300 rebate?
>
> Yes, because she has at least $3,000 of compensation.
>
>> 2. can she/should she not take all the education life time credit this
>> year, use it next year, thus pay some tax this year to get the 300 rebate.
>> is it feasible and how do I trick the TurboTax tax to take less than the
>> TurboTax optimizes for?
>
> If she has sufficient tax liability in 2008, she will be eligible to offset
> her tax with up to $300 of unused credit. Go ahead and claim everything she
> is eligible for on her 2007 tax return.
>
>
> Condor
>
One clarification here. It's not "earned income" that matters, but
"qualified income." Meaning of course social security benefits and
veteran's administration payments.
ChEAr$,
Harlan Lunsford, EA n LA
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Allan Martin on February 10, 2008, 11:53 pm
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> My daughter, grad student, files as single, I don't claim her as a
> dependent. Her earned income in 2007 is 5000, cap gains = 20000, takes
> std deduction. She ends up with zero tax for 2007 because of tuition and
> credits for education.
> Questions:
> 1. does she qualify for 300 rebate?
Yes, she qualifies for the $500 rebate.
> 2. can she/should she not take all the education life time credit this
> year, use it next year, thus pay some tax this year to get the 300 rebate.
> is it feasible and how do I trick the TurboTax tax to take less than the
> TurboTax optimizes for?
The fact that she earned more than $3,000 qualifies her for the rebate. The
basic credit is as follows:
Basic credit
All eligible individuals are entitled to the basic credit (for the first
taxable year
beginning) in 2008 of $500 ($1,000 in the case of a joint return) if they
satisfy at least one of the
following two criteria:
(1) The sum of an eligible individual's: (1) earned income (as defined for
purposes of the
earned income credit); and (2) social security benefits must be at least
$3,000; or
(2) The eligible individual has a net income tax liability of at least $1.
For these purposes, "net income tax liability" means the excess of the sum
of the
individual's regular tax liability and alternative minimum tax over the sum
of all nonrefundable
credits (other than the child credit). Net income tax liability as
determined for these purposes is
not reduced by the credit added by this provision or any credit which is
refundable under present
law.
>
> thanks.
> --
> << ------------------------------------------------------- >>
> << The foregoing was not intended or written to be used, >>
> << nor can it used, for the purpose of avoiding penalties >>
> << that may be imposed upon the taxpayer. >>
> << >>
> << The Charter and the Guidelines for submitting posts >>
> << to this newsgroup as well as our anti-spamming policy >>
> << are at www.asktax.org. >>
> << Copyright (2007) - All rights reserved. >>
> << ------------------------------------------------------- >>
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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