I am currently on an H1b visa (for last 7 months) and my brother is under F1 visa ( 1month). I am paying for his tuition and was wondering if I can claim tax deduction based on the fact that he would be considered a dependent under me. Also, do I have to file any documents to make him as a dependent? Also, is there any tax advantages with this situation.

Thanks
- Ashish

Ashish:

Are you married?

What is your country of origin?

When did you enter the country?

No I am not married
Country of origin - Tanzania
I entered US in sept 2002 on F! Status, and was converted to H1B 7 months ago.

Thanks

How long has your brother been in the U.S. on his F-1 visa?

Does HE have any income earned in the U.S. in 2006?

How much income have you earned while on H-1B in 2006? How much was earned while on F-1 in 2006?

What is the EXACT date that your H-1B went into effect (VERY important to how I advise you)?

My brother has been on F1 for 1 month.
He hasn't earned any income
Income while on H1B - $20K
Income while on F1 - $5K
H1B went into effect on 11/21/06

If you REALLY want to claim your brother as a dependent, you will have to file a dual-status tax return.

To file dual-status, you must wait until mid-June 2007 before you can file, because you will NOT meet the Substantial Presence Test until then.

If you do not want to wait, you can file as a non-resident alien, filing Form 1040NR or 1040NR-EZ right away. But you CANNOT claim your brother as a dependent if you file this way.

What do you suggest I should be doing to get better benefits/claim. If waiting till June 2007 is a good option that's fine. What are the procedures in filing the Dual-status? Are there and paper work to be done or anything else to prove that my brother is a dependent. Thanks

There are NO procedures to prove your brother is a dependent. I would attach a copy of his visa to show that he was in the U.S. for at least part of 2006.

The dual-status return is a very complex return. You should get professional help. If you want to use my service, contact me at [email protected].

One of the requirements to claim someone as a dependent is that he should be a citizen of US. Is that true? Because neither me nor him are citizens.

No, not a citizen but rather a resident.

If he was in the U.S. for part of 2006, then he qualifies as a resident.