ASHINGTON, Sept. 10 — The Treasury Department is considering letting some children take advantage of the tax break that resulted in a $300 rebate check this year for most other income-tax payers.
The benefit would go to children who have sufficient income to file tax returns in their own names but who are claimed as dependents on their parents' returns. They were not entitled to rebates under the law Congress approved in May. But the law was not explicit on whether they could take advantage of a 10 percent rate, instead of a 15 percent rate, on the first $6,000 of income when they filed their 2001 returns.
If they are allowed to do so, the tax saving would be up to $35 for children under 14 and as much as $300 for children 14 and older with more than $4,000 of wage income.
The Wall Street Journal reported today that the decision had been made to allow the 10 percent rate, but a Treasury spokeswoman said the matter was still under consideration. The lower rate would also apply to nonresident aliens.
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