Tax Experts
Tax Rebate Rules for College Students and Dependents
By Kevin McCormally, Editorial Director, Kiplinger.com
March 26, 2008
Q: I have two boys who turned 23 and 21 this year. They both work and go to college full time. They both have filed their own tax returns for the last several years, but they both still live at home. In the past, I have claimed them as dependents.
If I claim them on my return again this year, will they still be entitled to a tax rebate?
I read somewhere college kids lose out on it, but both of them received a post card alluding to the fact that they would be getting one as long as they filed their own tax return. Can you please help clarify this for me? -- Teri
Kevin's Answer:
Sure, I can clarify, but your boys won't like it.
The law specifically says that anyone who can be claimed as a dependent on someone else's return is banned from receiving a tax rebate. (This is true even if the parent decides not to claim the child because, for example, the parent's income is too high to benefit fully from the exemption.)
The IRS sent those get-your-hopes-up notices to everyone who filed a 2006 return, including dependents and folks whose income is too high to receive the tax rebate. The law prevents your sons from getting a rebate.
FIND MORE TAX ANSWERS
Reader Comments (2)
Posted by: J at 04/25/2008 10:56:10 PM
...Why would they not give the rebate to the people who are spending thousands and thousands on college tuition? By the way, how much of their tuition is paid for by government loans anyway? The Government would end up getting it all back in the end anyway thanks to these loans, but they would at least help these people out a bit by sending them some cash, too...
Posted by: kevin at 04/28/2008 11:11:30 AM
Hi, this Kevin McCormally. In answer to why Congress decided to ban rebates for dependents, I haven't a clue. You might want to ask your Representative and Senators. Might have been to limit the cost of the program. Sorry I can't be of more help.