Tax Break For Child Support When The Child Is Still In Home Country?

[slowlyman 118]

So, it's tax time for me. My accountant is convinced my wife and I can deduct child support we send to her daughter. She says all we need is a tax id for her daughter. I don;t see how we can get a tax ID for someone who does not reside in the US.

Anybody have experience on this?

[Darnell 8,478]

file an IRS form w-7, form for ITIN , on the child, submitted with a paper 1040 return, into the address in Austin TX (listed on the W-7 instructions).

[slowlyman 118]

Thanks Darnell.

The W-7 instructions are clear as mud as usual. What 1040 am I sending? last year, This year? The way I read it, we take the deduction for the daughter then submit the W-7 a supporting documents. Do I have that right or not?

[belinda63 3,039]

To my knowledge there is no tax credit for child support. He might mean claiming the child as a dependent which I don't believe you can since she doesn't live with you..check IRS.gov for more info.

[slowlyman 118]

http://www.irs.gov/publications/p501/ar02.html#en_US_2012_publink1000220886

Sheesh that document will give a guy a headache. The document doesn;t really seem to address this situation. it does say you need to live with the child for at least half the year, but then goes on to list all possible exceptions.

Anybody got the name of a good immigration accountant?

[NigeriaorBust 4,087]

You can't deduct child support from your income. You can claim a child as a dependent only if they are US residents or residents of Canada or Mexico provided you pay more than half their support. People living in other countries are NOT allowed to be claimed as dependents.

http://www.irs.gov/publications/p17/ch03.html

• You cannot claim a person as a dependent unless that person is a U.S. citizen, U.S. resident alien, U.S. national, or a resident of Canada or Mexico.¹

[slowlyman 118]

Interesting how Mexico is exempt from the rules.

[rin and john 71]

http://www.irs.gov/publications/p501/ar02.html#en_US_2012_publink1000220886

Sheesh that document will give a guy a headache. The document doesn;t really seem to address this situation. it does say you need to live with the child for at least half the year, but then goes on to list all possible exceptions.

Anybody got the name of a good immigration accountant?

Do you plan on the child eventually immigrating to the US? We did not claim Rin's children on 2006 return as they did not arrive until 2007 and received GCs in 2008. Once they had SSNs, I filed an amended return for 2006 and got back about $5k. One of the exceptions is attending school. We went with that.

[slowlyman 118]

At this time her teenage daughter has no plans to come to the US. That could change in time. Currently she stays with Jin's sister and we send support.

[NigeriaorBust 4,087]

In that case there is no deduction for money sent and the child is not a dependent for tax purposes.

[slowlyman 118]

That is correct

[rin and john 71]

At this time her teenage daughter has no plans to come to the US. That could change in time. Currently she stays with Jin's sister and we send support.

I would claim her as a dependent. In IRS publication 501, it states "Child's place of residence. Children usually are citizens or residents of the country of their parents.

If you were a U.S. citizen when your child was born, the child may be a U.S. citizen and meet this test even if the other parent was a nonresident alien and the child was born in a foreign country." Your wife is a US resident, therefore her child is considered a resident (for tax purposes - the IRS defines a resident and a non-resident differently than USCIS). The reason for not being physically with you is education. From pub 501,

"Residency Test

To meet this test, your child must have lived with you for more than half the year. There are exceptions for temporary absences, children who were born or died during the year, kidnap­ ped children, and children of divorced or sepa­ rated parents.

Temporary absences. Your child is consid­ ered to have lived with you during periods of time when one of you, or both, are temporarily absent due to special circumstances such as:

Illness, Education, Business, Vacation, or Military service".

This is fairly common for expats to claim non-resident children as dependents when filing from abroad.

[NigeriaorBust 4,087]

Yes but the child lived with the which this one doesn't. When audited they will have to pay penalties and interest and if not a USC that can look bad when filing for USC

[aaron2020 11,651]

I would claim her as a dependent. In IRS publication 501, it states "Child's place of residence. Children usually are citizens or residents of the country of their parents.

If you were a U.S. citizen when your child was born, the child may be a U.S. citizen and meet this test even if the other parent was a nonresident alien and the child was born in a foreign country." Your wife is a US resident, therefore her child is considered a resident (for tax purposes - the IRS defines a resident and a non-resident differently than USCIS). The reason for not being physically with you is education. From pub 501,

"Residency Test

To meet this test, your child must have lived with you for more than half the year. There are exceptions for temporary absences, children who were born or died during the year, kidnap­ ped children, and children of divorced or sepa­ rated parents.

Temporary absences. Your child is consid­ ered to have lived with you during periods of time when one of you, or both, are temporarily absent due to special circumstances such as:

Illness, Education, Business, Vacation, or Military service".

This is fairly common for expats to claim non-resident children as dependents when filing from abroad.

You are wrong on the his issue.

The OP states that the child is his Thai wife's child.

In order for her to be a qualified tax dependent, the daughter must be a US citizen or national, or a resident of the US, Canada, or

http://www.irs.gov/uac/A-Qualifying-Child

Did you are the word "usually?" It doesn't mean always. It means that children usually have the sme residence as the parent because they are living together.

Read page 12 of IRS Publication 501. Read the part about the US citizenship or Residency requirement. The exception is for adopted children.

Children of US citizen expats are US citizens and do not need to meet the residency requirement to be claimed as tax dependents.

Please be aware of the difference tax treatment for US citizens versus LPRs.

Edited December 16, 2013 by aaron2020

[slowlyman 118]

The whole law is clear as mud but near as I can determine she would need a tax payer ID for us to claim her and she does not meet the requirements for the ID. Hence no deduction. The IRS link mentioned earlier in this thread is pretty clear on that point.