using turbo tax

[Brian121957 43]

There has been several discussions on claiming a step daughter as a dependent when they have not been in the country for a full year. She lived with her mother for the full year. but they both have only been in the US since November. We married in December.

At this point I believe she can be claimed but has any body figured out how to get turbo tax to do it and fill out the correct forms?

[Enigma11561 336]

I use Turbo tax and when my step son arrived in September 2010 I just listed him as a dependent ( with SS number)when I filed my 2010 taxes. I do not remember if there was anything that indicated weather or not he lived here for the entire year.

[vancedan 5]

I think he's asking about the Child Tax Credit and it basically states they need to be a perm. resident, and living here for at least six months. I've wondered the same thing, but am personally just forgoing it, rather than risk an audit. That said, if anyone knows more, I'd be interested.

[aaron2020 11,651]

The other parent is a co-filer. The child is her dependent. Simple as that for her to cla the child.

[vancedan 5]

The other parent is a co-filer. The child is her dependent. Simple as that for her to cla the child.

Does that include the tax credit as well?

[aaron2020 11,651]

Does that include the tax credit as well?

Yes. Mom is a US taxpayer for the entire year.

Notice that under the residence requirement - there is no requirement that is be a US residence. US taxpayers living abroad with their children are entitled to the credit.

The Citizenship Test will not be a problem. On Dec. 31, 2011, the child must be a US citizen, US national, or US resident alien. US resident alien is not limited to LPRs. Even illegal aliens are US resident aliens.

http://www.irs.gov/newsroom/article/0,,id=106182,00.html

Ten Facts about the Child Tax Credit

IRS Tax Tip 2011-29, February 10, 2011

The Child Tax Credit is an important tax credit that may be worth as much as $1,000 per qualifying child depending upon your income. Here are 10 important facts from the IRS about this credit and how it may benefit your family.

1. Amount - With the Child Tax Credit, you may be able to reduce your federal income tax by up to $1,000 for each qualifying child under the age of 17.
   
2. Qualification - A qualifying child for this credit is someone who meets the qualifying criteria of six tests: age, relationship, support, dependent, citizenship, and residence.
   
3. Age Test - To qualify, a child must have been under age 17 – age 16 or younger – at the end of 2010.
   
4. Relationship Test - To claim a child for purposes of the Child Tax Credit, they must either be your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister or a descendant of any of these individuals, which includes your grandchild, niece or nephew. An adopted child is always treated as your own child. An adopted child includes a child lawfully placed with you for legal adoption.
   
5. Support Test - In order to claim a child for this credit, the child must not have provided more than half of their own support.
   
6. Dependent Test - You must claim the child as a dependent on your federal tax return.
   
7. Citizenship Test - To meet the citizenship test, the child must be a U.S. citizen, U.S. national, or U.S. resident alien.
   
8. Residence Test - The child must have lived with you for more than half of 2010. There are some exceptions to the residence test, which can be found in IRS Publication 972, Child Tax Credit.
   
9. Limitations - The credit is limited if your modified adjusted gross income is above a certain amount. The amount at which this phase-out begins varies depending on your filing status. For married taxpayers filing a joint return, the phase-out begins at $110,000. For married taxpayers filing a separate return, it begins at $55,000. For all other taxpayers, the phase-out begins at $75,000. In addition, the Child Tax Credit is generally limited by the amount of the income tax you owe as well as any alternative minimum tax you owe.
   
10. Additional Child Tax Credit - If the amount of your Child Tax Credit is greater than the amount of income tax you owe, you may be able to claim the Additional Child Tax Credit.
    

Edited February 15, 2012 by aaron2020

[aaron2020 11,651]

Yes. Mom is a US taxpayer for the entire year.

Notice that under the residence requirement - there is no requirement that is be a US residence. US taxpayers living abroad with their children are entitled to the credit.

The Citizenship Test will not be a problem. On Dec. 31, 2011, the child must be a US citizen, US national, or US resident alien. US resident alien is not limited to LPRs. Even illegal aliens are US resident aliens. Many illegal aliens who file tax returns are entitled to the Child Tax Credit. Congress is currently considering stopping illegal aliens from taking the Child Tax Credit. http://www.foxnews.com/politics/2012/02/08/republicans-target-child-tax-break-for-illegal-immigrants/

http://www.irs.gov/newsroom/article/0,,id=106182,00.html

This was written for tax year 2010. Just add a year to everything for tax year 2011.

Ten Facts about the Child Tax Credit

IRS Tax Tip 2011-29, February 10, 2011

The Child Tax Credit is an important tax credit that may be worth as much as $1,000 per qualifying child depending upon your income. Here are 10 important facts from the IRS about this credit and how it may benefit your family.

1. Amount - With the Child Tax Credit, you may be able to reduce your federal income tax by up to $1,000 for each qualifying child under the age of 17.
   
2. Qualification - A qualifying child for this credit is someone who meets the qualifying criteria of six tests: age, relationship, support, dependent, citizenship, and residence.
   
3. Age Test - To qualify, a child must have been under age 17 – age 16 or younger – at the end of 2010.
   
4. Relationship Test - To claim a child for purposes of the Child Tax Credit, they must either be your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister or a descendant of any of these individuals, which includes your grandchild, niece or nephew. An adopted child is always treated as your own child. An adopted child includes a child lawfully placed with you for legal adoption.
   
5. Support Test - In order to claim a child for this credit, the child must not have provided more than half of their own support.
   
6. Dependent Test - You must claim the child as a dependent on your federal tax return.
   
7. Citizenship Test - To meet the citizenship test, the child must be a U.S. citizen, U.S. national, or U.S. resident alien.
   
8. Residence Test - The child must have lived with you for more than half of 2010. There are some exceptions to the residence test, which can be found in IRS Publication 972, Child Tax Credit.
   
9. Limitations - The credit is limited if your modified adjusted gross income is above a certain amount. The amount at which this phase-out begins varies depending on your filing status. For married taxpayers filing a joint return, the phase-out begins at $110,000. For married taxpayers filing a separate return, it begins at $55,000. For all other taxpayers, the phase-out begins at $75,000. In addition, the Child Tax Credit is generally limited by the amount of the income tax you owe as well as any alternative minimum tax you owe.
   
10. Additional Child Tax Credit - If the amount of your Child Tax Credit is greater than the amount of income tax you owe, you may be able to claim the Additional Child Tax Credit.
    

Edited February 15, 2012 by aaron2020

[vancedan 5]

Ah, okay thank you for explaining that, now it makes sense as it never clicked on the wife and joint tax form (residing with her, just don't tell the mrs, I excluded her in my mind ).

[aaron2020 11,651]

Ah, okay thank you for explaining that, now it makes sense as it never clicked on the wife and joint tax form (residing with her, just don't tell the mrs, I excluded her in my mind ).

Just send me money for half of the credit. I promise I wouldn't tell her.

Edited February 15, 2012 by aaron2020

[Penguin_ie 5,993]

*** Moving from AOS to Your New Life in America as not AOS process related *****

[Joyce and Chris 1]

Good topic, Brian is in the exact situation I am in. I was using H&R Block tax program and it would not allow me to use my stepson as a dependent. So now I am in the process of Turbotax. The question I have does my stepson need to have a SSN card in order to claim him?

Thanks

[Darnell 8,478]

Ah, okay thank you for explaining that, now it makes sense as it never clicked on the wife and joint tax form (residing with her, just don't tell the mrs, I excluded her in my mind ).

I will tell her in the morning - no worries - not fret about the angry eggs.

[aaron2020 11,651]

Good topic, Brian is in the exact situation I am in. I was using H&R Block tax program and it would not allow me to use my stepson as a dependent. So now I am in the process of Turbotax. The question I have does my stepson need to have a SSN card in order to claim him?

Thanks

An SSN or ITIN is necessary to claim him.

[Brian121957 43]

An SSN or ITIN is necessary to claim him.

I talked to our visa / AOS service. Their recommendation was to file with out the child now. And then file an amended return after we get her SSN later this year. This at least kicks the can farther down the road but it still looks like Turbo Tax is going to kick her out if she did not live with me for the full year. My guess is that an amended return is more likely to be looked at closer so it is even more important that I do it right.

[aaron2020 11,651]

I talked to our visa / AOS service. Their recommendation was to file with out the child now. And then file an amended return after we get her SSN later this year. This at least kicks the can farther down the road but it still looks like Turbo Tax is going to kick her out if she did not live with me for the full year. My guess is that an amended return is more likely to be looked at closer so it is even more important that I do it right.

You have to be flexible when using Turbotax. It's not living with you that is the basis for claiming the child as a dependent or taking the Child Tax Credit. It's living with your wife. You have to include her as a co-filer. She is the one that lived with the child for the full year. She's the US taxpayer. She's the one entitled to claim the child as her dependent and taking the CTC.

Why are taking tax advice from your visa/AOS service? Are they tax preparers also?

Edited February 15, 2012 by aaron2020