I am holding H1-b visa since Sept.2006. I filed my tax return as resident in 2005 since I have been in US for more than 6 years. Here I have two questions about my tax return:

I just have a baby in US in Dec.2006, can I claim my baby as an independent for the tax file of year 2006? If yes, what should I do?

My parents-in-law from China stayed with us since May 20,2006 and will stay here until May 2007. Can I claim them as dependents for the tax file of year 2006? If yes, what should I do?

Thank you very much,

Bo

Bo:

First, congratulations on the birth of your baby. May you savor the joy of parenthood.

Yes, he/she is your dependent for 2006. Your baby could have been born one minute before midnight on New Year's Eve, and he/she would be considered your dependent for the entire year.

As for your parents, you CAN claim them as dependents provided:

- they did NOT have gross income in excess of $3,300 each ($6,600 total) from ANYWHERE in the world.

AND

- You provided over half of their total support for 2006.

The same rules apply for 2007, because they meet all the other test (they are a blood relative, they are not filing a return, and they were resident in the United States for at least part of the year).

Now, to claim them, they must be issued Individual Tax Identification Numbers (ITINs). This is done using Form W-7 (one each per parent), which is completed and submitted, along with a notarized photocopy of the passport, when you file your 2006 tax return. You list their names in the dependent's section of the Form 1040A or 1040, leaving the SSN portion BLANK. It is mailed to the address in the W-7 instructions. The IRS accepts the application, issues the ITIN, inserts the ITINs next to your in-laws' names in the tax return, then processes the return. The ITINs will be sent to them in separate correspondence.

Once they receive the ITINs, then (and only then) can you file the state tax returns.

If you need further guidance, or professional help filing your return, contact me at [email protected].

Thank you very much.

My parents-in-law are chinese citizenship.They are not US resident. Can I still claim them as dependents?

Wish you a happy new year!

Bo

Bo:

Their citizenship is not relevant. The requirement specified in the IRC is that they be physically resident in the United States. They meet that requirement for both 2006 and 2007, so, assuming the other conditions are met, you should be able to claim them as dependents.

Thank you very much. I got your answer.

Glad to help!