[freephoneid]

Hi,
My parents stayed in CA, USA for 178 days. Can I show them as dependent while filing taxes for year 2009?

I supported them completely while they were in US. They're india citizen & are retired.

If so, can I take the passport notary no itself so that I can show it while filing taxes along with W7?

Help.

Regards!

[AtlantaTaxExpert]

You CANNOT claim them as dependents, as they have NOT met the 183-day Substantial Presence Test!

[freephoneid]

Hello,
Thanks for your reply! However, I'm little confused with your answer in another thread at https://www.askmehelpdesk.com/taxes/...urn-76380.html

I've one more question. If they come back again in US in next month & stayed with me for a couple of months, in that case, can I claim them as dependent?

Thanks!

[Five Rings]

Read this
http://www.irs.gov/pub/irs-pdf/p501.pdf
Starting at page 11

[AtlantaTaxExpert]

To be claimed as a dependent, the parent MUST be a U.S. resident. To be considered a U.S. resident, they must meet the 183-day Substantial Presence Test, which is explained in detail in IRS Pub 519.

Your parents clearly did NOT meet the SPT, which is why you cannot claim them as dependents.

[freephoneid]

But then, If the parents stay with me for first 6 months & then nov & dec month, then the total stay during the year goes beyond 183 days. In that case, can I claim them as dependent?

[AtlantaTaxExpert]

The time in the first year (six months) is decremented by two-thirds. In other words, of the 178 days in the first year, only 59 days counts towards the SPT in the second year. That 59 days, combined with the two months (60 days), is only 119 days, which is short of the SPT by 64 days.

[freephoneid]

Thanks AtlantaTaxExpert!

You're really expert in knowledge!

I still have some question. Can u tell me with example how to qualify for 183 days when a person can stay only 6 months in US?

How come u did the 2/3 for 178 days & not for 60 days later?

Thanks!

[AtlantaTaxExpert]

Okay, let me see if I have this straight:

They stayed in the U.S. for 178 days from Jan to June 2008, then another 60 days in November and December of 2008?

If so, then they HAVE met the SPT and can, In my opinion, be claimed as dependents. I have queried the IRS in the past on this matter and that IS their guidance.

You will need to submit Forms W-7 to get them ITINs, but, provided you can show their 230+ days of presence in the U.S. and provided the IRS accepts your stance that you have provided more than 50% bof their total support, you should be able to claim them as dependents.

[Five Rings]

Maybe there is some confusion here.

Suppose your parents stay with you in 2009 for 178 days staying from Jan 1 to June 27th and then go home to India.

If they came back and spent part of November and December with you, let's say 30 days that would make them resident by substantial presence and you could take them as dependents.

They would need ITINs of course.

[AtlantaTaxExpert]

Five Rings:

I re-read his answer, then amended my original post.

Looks like you answered amd I amended at the same time.

Great minds thinks alike! :-)

[freephoneid]

Hi AtlantaTaxExpert & all others who replied to this forum,
Thanks for all your great helpful answers!!

In order to make things more clear, I'm asking few more questions... I'll really appreciate if you can answer those as well..

1. A person XYZ's parents stayed in US in year 2009 from, say Mar 22, 2009 to Sep 15, 2009 (Total Days = 178)& went back to India.
2. Now, if XYZ's parents come back again in next year 2010 & will be staying for 124 days between anytime from Jan to Dec 2010,

Then, I believe XYZ can claim them as dependent while filing tax return (in year 2011) for year 2010, am I correct?

Thanks!

[Five Rings]

Read the rules for substantial presence:

Substantial Presence Test

[freephoneid]

Hi,

1. As per the link, 124+ 178/3 = 124+59=183 days, so parents can be claimed as dependent,right?

2. Related question - If the spouse is not working (homemaker) & she spent 7 months out of US & she is not US citizen, then can we still show spouse as dependent? Is this 183 days rule applicable for spouse too?

3. Another related question - A new born baby who is born in US in the month of Aug (who has not completed 183 days since born in that year) can be claimed as dependent or not? Is this 183 days rule applicable for new born baby too?

Thanks!

[Five Rings]

1. yes

2. There is a better way. If you are a citizen or resident alien and your wife is a nonresident alien you can both choose to treat her as a US resident. She has an ITIN? If not you must get one.
You file as married filing jointly.

Go here and read about it on page 10
http://www.irs.gov/pub/irs-pdf/p519.pdf

3. The baby is a US citizen. Congratulations by the way.
He/she is considered present for the entire year, you take the child as a dependent, and claim the child tax credit ($1,000) too.

[Five Rings]

You understand that your parents will need ITINs for you to claim them as dependents, right?

On the Form W-7 check box (d) filling in your name and number where required. One W-7 for each of them. Submit these forms with your tax return to:
Internal Revenue Service
ITIN Operation
P.O. Box 149342
Austin, TX 78714-9342

[freephoneid]

Hello Five Rings,
Thanks for all your detailed responses!

How come a baby born in US do not need to go through 183 days test? I mean if a person's baby is born on 30 Dec, can the parents still claim $1000 credit?

Also, I'm a resident alien & my wife has an TIN as well as SSN. If she spends say, 10 months out of US & live in US only for Nov & Dec, can I still show her as dependent while filing as Married Jointly? If so, why 183 days rule is not considered in this case?

Thanks!

[AtlantaTaxExpert]

A child born in the U.S. is, by law, a citizen of the United States, and automatically qualifies for the $1,000 Child Tax Credit plus, if he spends ANY time in the U.S. as a dependent. There is NO requirement for him to meet the SPT.

As for your wife, you CANNOT show her as a dependent. However, you CAN file jointly with her using her SSN (the ITIN is no longer valid). To file jointly, the only requirement is that you be legally married. Her physical location is irrelevent; she could be on Mars for all the IRS cares!

[freephoneid]

Hi AtlantaTaxExpert,

Understood!

Thanks again for the reply.

Regarding my question related to showing parents as dependent, Fiverings has given the link for publication p519.pdf

You've also mentioned that if parents can meet SPT, they can be claimed as dependent. But when I went through the above PDF, it has a flow diagram on page 5 which has a question at the end "Can you show that for 2008 you have a tax home in a foreign
country and have a closer connection to that country than to the
United States?"

Can you tell me how can we prove that the answer to this is "No" (assuming parents satisfy SPT) so that we can show parents as dependent while filing returns?

Thanks!

[AtlantaTaxExpert]

You do NOT have to prove the answer is NO. It is assumed that, if you are in the U.S. that you do NOT have a closer connection.