[MOHAMDK0]

I'm in US from June 2007 on L1 visa. My wife and kid came to US on Oct 2007 on L2 visa as my dependents. So, by the number of days present in US, I'm a resident and they are not. I'm filing tax returns jointly with my wife now. Can I claim my wife and kid as my dependent and also can I claim child tax credit for her?

Early response is highly appreciated.

[MukatA]

Yes, you can file as residents as Married Filing Jointly. Can claim deduction for kids and will also get child tax credit.

You must both declare your world wide income for 2007. Also must attach a First year choice statement that you both agree to be treated as residents. Attach W7 forms with your tax return.

[The Texas Tax Expert]

Yes, you can file as residents as Married Filing Jointly. can claim deduction for kids and will also get child tax credit.

You must both declare your world wide income for 2007. Also must attach a First year choice statement that you both agree to be treated as residents. Attach W7 forms with your tax return.

I disagree. I don't believe that the child qualifies for the child tax credit.

[AtlantaTaxExpert]

TTE:

Under the criteria specified in the IRS pubs, I would at first glance agree with you.

However, I could NOT find a specific example in any IRS Pub that fit this circumstance, so I called the IRS Internatinal Tax Hotline.

On THREE separate occasions last year, the IRS representative came to the conclusion that, barring specific IRS guidance otherwise, the resident status that is granted to the spouse when he/she files jointly under the First Year Choice also applies to any children who are in either parent's custody for the entire year.


Hence, the child DOES qualify for the Child Tax Credit under the circumstances noted in Hohamdko's posting.