[micky_577]

Hi,
I want to claim my green card holder parents as a dependent but they came in August 07to USA and so they are failing substaitial presence test. I am on H1B visa. I think they will be dual status alien. I was wondering is there anyway I can claim them as dependent.

[AtlantaTaxExpert]

Negative. They MUST meet the Substantial Presence Test to be claimed as dependents.

[MukatA]

I am not sure that micky_577's parents need to meet the Substantial Presence Test. They are residents (Green Card test). Also to claim parents it is not necessary that they live with you. The other requirements (under Qualifying Relative) are:

1. The person's (parent's) gross income for the year must be less than $3,400.(This does not include their social security benefits, but to claim them dependent you must provide more than this as support)
2.. You must provide more than half of the person's total support for the year.
3. You cannot claim any dependents if you, or your spouse if filing jointly, could be claimed as a dependent by another taxpayer.
4. You cannot claim a married person who files a joint return as a dependent unless that joint return is only a claim for refund and there would be no tax liability for either spouse on separate returns.

Also the parents are residents for tax purpose even if they are not in the U.S. for even a single day in 2007. Also if they are claimed as dependent, they must file tax return if they meet Dependent's filing requirement based on the world wide income.

[AtlantaTaxExpert]

MukatA:

You know, because of the Green Card, you are probably right about Micky being able to claim them. The Green Card makes them de facto residents. On this issue I stand corrected.

However, the $3,400 gross income test MUST include their world-wide income, not just U.S.-sourced income.