Stimulus vs Child Tax Credit

Today TaxMama hears from Cho in New York, who says. “My 2008 tax rebate check included $300 per child. Do I still expect $1,000 Child Tax Credit for each eligible child when I file my 2008 federal tax return? Or, just $700 per child?”

Dear Cho,

Truly, the whole Stimulus Rebate thing has been very confusing. The $300 per child is part of the Stimulus Rebate.

The $1,000 per child Child Tax Credit or Additional Child Tax Credit is a separate thing. So you’ll still be getting that.

Remember, when you file your 2008 tax return, there will be line 70 among the credits, to give you the Stimulus Rebate – again. Do not take that credit if you’ve already received the money.

Here’s a draft copy of the 2008 Form 1040. http://www.irs.ustreas.gov/pub/irs-dft/f1040—dft.pdf

If no other tax laws are changed by the ‘lame-duck’ Congress, this is the version that will be in use next year. I hope this clears things up a bit.

And remember, you can find answers to all kinds of questions about tax credits and other tax issues, free. Where? Where else? At TaxMama.com

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