I wanted to verify with you whether I can claim my parents as dependent? They live in India but travel to USA alternate year on visitors visa. As per IRS publication of residence test, they qualify of collective stay of more than 183 days based on 3 year period (180 days in current year, 1/3 of previous year). They both are retired and I pay for their entire living expenses in India and here whenever they come and visit us. They do not have any additional source of income. It is the maintenance expense that I send them occasionally, they deposit in a bank whose interest is not more than 1500$ annually. They do not file income tax in India as their interest income is less than the lowest tax slab under which taxes are free (for first 3400 USD or so). Please let me know whether I can claim them as dependent in the year when they meet the residence test or not?

If your parents meet the Substantial Presence Test, then you CAN apply for ITINs for them and claim them as dependents. I have successfully filed tax returns for several clients in similar situations over the past three years.