The current Bush stimulus plan calls for rebates of $600 for a single person, $1,200 for a couple and an extra $300 for each qualifying child. Taxpayers who make more than $75,000, or $150,000 for married filing jointly, will or a smaller rebate on a sliding higher income scale until there get no rebate.
My background: If my parents lifted gas or grocery money from my piggy bank they would put in IOUs and/or pay my siblings and me back by the end of the day/week and make a pretty big deal out of it. They scrupulously made sure that any Birthday, Holiday money etc. made it to our bank accounts without any money sticking to their fingers. That was how I was raised in this regard.
So, I am really struggling with this: if my 9 year old, who has never paid a dime in taxes, is getting a ~$300 ‘rebate’ because he is claimed on my 2007 return is it “his” money the way a Birthday/graduation present is his? Or is it “my” money the way he is a deductible dependant on my taxes and figures into a portion my refund?
I don’t think there is a “right” answer, so I would like to hear your opinions.
Strictly speaking seems to me that the ‘rebate’ goes to the person paying the taxes - by definition, if you paid no tax you can’t get a ‘rebate’ of taxes.
There is room for the argument that you wouldn’t get the rebate if your child didn’t exist. I think you could stretch it to say that he ‘earned’ it by being your child. Although, then what do you do with ‘you wouldn’t be here if your mom and I hadn’t made you?’
It seems to me that you get the rebate because you’re the one who paid taxes, and supports his existence in the first place. He can’t get a rebate on tax money he didn’t pay out.
It’s nice of you to consider giving it to him, but I don’t think it’s deservedly his the way that birthday money is deservedly his.
Agreed 100%. Also, please note that one may (depending on one’s income and other circs) derive many, many tax benefits on one’s federal income tax from having one’s children: the children qualify one for the child tax credit, the additional child tax credit, additional earned income credit, the exemption, the day care credit, and possible head of household filing status, as well as numerous unnamed benefits on the state tax return. NONE of these are benefits that “belong to the child”; they belong to the person who provided support to the child in the first place. This is the same sort of thing.
Yeah, they give you extra money because kids are expensive and they’re trying to help you out. If you want to give it to him, fine, but it certainly isn’t “his money”.
If the kids wasn’t a dependent, then he would get his own money. Since he is, you get the money. That’s in addition to the other good arguments.
However, instead of starting a bank account for him with it, start a college account that you own. Better for financial aid, that way, and it will prevent him from removing the money on reaching 18.
