Q: I have a question relative to the child credit one can claim on a tax return. Me and my wife filed our joint return this year, and we were told that since our son turned 17 years old in November, that we cannot receive any child credit. Is this accurate? He’s still in high school and resides with us. By the way, we also have two younger children living with us, if this helps. If this is false, can we amend our taxes?

— O.S., Central Falls

A: Whoever provided the information to you was right on target.

Federal tax law makes it clear that you may claim a child tax credit only for a child “who has not attained age 17.” (This is right out of the Internal Revenue Code, Section 24.)

So for a federal income tax return that you’re preparing now, covering the 2007 tax year, you may claim the child tax credit only for a child who was under 17 as of Dec. 31, 2007.

An Internal Revenue Service publication offers this example: “Your son turned 17 on Dec. 30, 2007. He is a citizen of the United States and you claimed him as a dependent on your return. He is not a qualifying child for the child tax credit because he was not under age 17 at the end of December 2007.”

The child tax credit was created — and expanded — mainly by Republicans. It doesn’t get much publicity (you need only read the previous sentence to figure out why), but it has nevertheless been a boon to families — including mine.

In general, you may claim a credit of up to $1,000 for each child you have who qualifies under the rules. This can sharply lower your federal tax liability, and increase the amount of your refund.

Nearly 90,000 Rhode Islanders claimed this credit for 2005, according to the latest available IRS figures.

The good news for you is that you probably can still claim the credit for your other children.

Your MoneyLine question also provides a helpful point for other families to keep in mind: If one or more of your children is nearing that magic age of 17, plan ahead. Once the credit disappears for that child, you may have to increase the amount of federal income tax that’s withheld from your paycheck, or increase the amount of your quarterly estimated payments.

The child tax credit has lots of rules (including income limits), more than I can list here. For more information, see Internal Revenue Service Publication 972, “Child Tax Credit.” For a free copy, visit your local IRS office, call the IRS toll-free at (800) 829-3676, or use this IRS Web site:

www.irs.gov/formspubs

For information on this subject as it applies in the new federal rebate program, keep reading:

Q: You have mentioned that dependent children under 17 may net qualifying parents an additional $300 in economic stimulus payments. What about other dependents, such as a dependent parent claimed on a qualifying taxpayer’s return?

— T.G., Portsmouth

A: The new federal rebate program relies, in part, on the rules that govern the child tax credit, mentioned above. Here’s how:

If you’re a parent, you may be eligible for an additional rebate amount of up to $300 for each of your “qualifying children,” according to the new economic stimulus law (which made the rebates possible).

And a “qualifying child” is one who meets the requirements of the child tax credit mentioned above. Thus, you may be entitled to that additional rebate amount for each child you have who was under 17 as of Dec. 31, 2007.

Because of that age limit, however, you can’t obtain the additional rebate amount for a parent whom you claim as a dependent on your return.

(Also, under a separate provision of the law, a parent who is claimed as a dependent on another’s return is not eligible to claim a rebate for himself or herself.)

Q: Early in January, as soon as forms were available, I filed for my two grandsons, using Forms 1040EZ. They have both already received their Rhode Island refunds, and the federal refunds should be coming soon. One grandson is a high-school senior working part-time, and the other is a U.S. Marine stationed in Iraq. My question is, does the Form 1040EZ qualify them for consideration for the stimulus rebate, or should I now file a Form 1040A?

— P.R., Westerly

A: There’s no need to file a U.S. Form 1040A; the Form 1040EZ will work.

But the form itself isn’t the issue; there are other matters that require attention.

For example, your grandson in high school is probably claimed as a dependent on his parents’ return. As a result, he won’t himself be eligible for a rebate, said Internal Revenue Service spokeswoman Peggy Riley.

(That’s true even though a return was filed on his behalf. You probably filed the return because of his earnings from his part-time work. Perhaps you filed to obtain a refund for him of tax that was withheld from his paycheck last year.)

However, if he was under age 17 on Dec. 31, 2007, his parents may be eligible for that additional rebate amount of up to $300 mentioned above.

As for your grandson in Iraq, he should be eligible for his own rebate based on his own compensation, Riley said.

Here’s something else to keep in mind: The IRS announced on March 20 that military personnel serving in combat zones have the option of including their nontaxable combat pay on their 2007 or 2008 income tax returns if it helps their eligibility for rebates.

To receive a rebate this year, combat zone personnel or their spouses must file a 2007 income tax return by Oct. 15. Otherwise, they can claim the rebate on next year’s income tax return, in the form of a credit.

“The last thing we want our troops in Iraq or other war zones to worry about are their tax returns. But we do want the troops, and their families stateside, to know they may qualify for the economic stimulus payment,” an IRS official said in the March 20 announcement.

To read the full announcement (IR-2008-48) for more details, see the “newsroom” section of the IRS Web site:

www.irs.gov

Q: What happens to [the rebate for] individuals that will file extensions this tax season?

— P.L., Johnston

A: You’ll still receive a rebate, but it won’t be processed until after you file your return, Riley said.

You’re talking about someone who obtains an automatic six-month extension to the usual April 15 deadline for filing a federal income-tax return, establishing a new deadline of Oct. 15.

Assuming you file by that Oct. 15 deadline, and you’re eligible for a rebate, you should receive it within a few weeks after you file, Riley said.

If you file after Oct. 15, the IRS may not be able to issue your rebate by year-end. And don’t forget that, under the new economic stimulus law, the IRS can’t issue rebates after Dec. 31.

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