Quote:
Originally Posted by mistyinca  I believe the reason they set the 12/31/1990 date is because the stimulus payment is actually an advance of next years' tax refund. So imagine next year when you file taxes, this payment is part of that refund. At that time, during the year, she will have been over 18. |
I don't believe it is an advance on next year's refund, according to the information I've found.
Also, about the age cut-off - it was the same thing a few years back when they started giving an extra $300 per child deduction. Your dependent child had to be born after a certain date to qualify. Which wasn't/isn't fair - most kids are still at home and dependent until at least 18! Shoot - both of mine are still at home and are 20 and 22
I copied the information below and included the link to the IRS site - hope it helps answer some questions.
Q. Is my stimulus payment taxable?
A. No. You will not owe tax on your payment when you file your 2008 federal income tax return. But you should keep a copy of the IRS letter you receive later this year listing the amount of your payment.
Q. If my stimulus payment is not going to affect my 2008 tax refund or increase the tax I owe next year, why is it I need to retain the letter that lists how much I received?
A. In the event you do not qualify for the full amount on your 2007 return but you do on your 2008 return, you will need to have the letter as a record of the amount you previously received. [New 4/11/08]
Q. Will the payment I receive in 2008 reduce my 2008 refund or increase the amount I owe for 2008?
A. No, the stimulus payment will not reduce your refund or increase the amount you owe when you file your 2008 return.
Economic Stimulus Payment FAQs: Basic Eligibility