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Posted by Harlan Lunsford on February 11, 2008, 6:08 pm
Please log in for more thread options Allan Martin 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, 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 $1.
> For these purposes, "net income tax liability" means the excess of the
> sum of the
> individual's regular tax liability and alternative minimum tax over the
> sum of all nonrefundable
> credits (other than the child credit). Net income tax liability as
> determined for these purposes is
> not reduced by the credit added by this provision or any credit which is
> refundable under present
> law.
Allan, you need to download a copy of the bill as passed by both House
and Senate. For example, the amounts are 600/1200$. And in the case of
the daughter referred to by OP, her minimum will be 300$.
ChEAr$,
Harlan Lunsford, EA n LA
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