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Old 04-22-2017, 07:13 PM
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H4 Dependents tax benifits

Hi I moved here in Feb 2017 on H1B and I have below questions regarding tax benefits for my H4 dependents.

1.When I file tax for year 2017 in 2018 how much tax benefit I will get if my dependents are with me during filing day but not in US in 2017?

2.Do my dependents have to be in US for more than 180 days to claim the tax benefits?

3.How much benefit I get for each dependents if they meet all required criteria to claim?

Thanks in advance.



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Old 04-23-2017, 05:13 AM
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Quote:
Originally Posted by taxpayer123 View Post
Hi I moved here in Feb 2017 on H1B and I have below questions regarding tax benefits for my H4 dependents.

1.When I file tax for year 2017 in 2018 how much tax benefit I will get if my dependents are with me during filing day but not in US in 2017?

2.Do my dependents have to be in US for more than 180 days to claim the tax benefits?

3.How much benefit I get for each dependents if they meet all required criteria to claim?

Thanks in advance.
1.When I file tax for year 2017 in 2018 how much tax benefit I will get if my dependents are with me during filing day but not in US in 2017?=====>

Since you enter the US before July 3rd of 2017 during the tax year of 2017 will meet the Substantial Presence Test (which requires presence in the U.S, for at least 183 days) and are considered dual-status aliens and must file a dual-status tax return, which, for you, consists of a Form 1040 with a Form 1040NR as an attachment. In most cases, you cannot claim the Standard Deduction, cannot file jointly with your spouse (though you can claim your spouse and children as dependents), cannot claim the Head of Household filing status, and cannot claim either the Earned Income Credit, the education credits or the credit for the elderly or disabled. As you may have guessed, the dual-status return is somewhat complicated and probably should NOT be filed without professional help.Since you are married and if your spouse is with you on a H-4 visa, then, you can both choose to be treated as resident aliens, regardless of whether you entered the US before or after July 3rd of 2017. As said since you arrived before July 3rd of 2017, you are already dual-status. If you started the year out as a nonresident, became a resident during the tax year of 2017 by meeting 183 day SPT when the year comes to an end, you will not be required to file Form 1040NR. You will be allowed to file a joint return with your spouse using a regular Form 1040. You are allowed to make this election even if you and your spouse are both dual-status aliens. If you make this election, you will be required to report your global income, but you would also be able to take advantage of the exclusions, deductions, and credits available to US Persons. In many cases the lower tax rate and higher deductions related to the status ?married filing jointly? justify reporting the higher income for the year.




2.Do my dependents have to be in US for more than 180 days to claim the tax benefits? ==>not really; In order to claim a dependency exemption, the child needs a Social Security number. If the child is not eligible for an SSN then the child needs an Individual Tax Identification Number to be claimed as a dependent. Form W-7 is used to apply for an ITIN.as a US resident for tax purposes, you can claim them as dependents on your return aslognas The person must have made less than $4.5K in gross income during 2017. And you must have provided more than half of the individual's total support during the year



3.How much benefit I get for each dependents if they meet all required criteria to claim?=>you can claim $4.5K per dependent in 2017; The personal exemption amount is indexed annually for inflation.



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Old 04-23-2017, 01:20 PM
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Thank you very much for your detailed answer.

Quote:
Since you are married and if your spouse is with you on a H-4 visa, then, you can both choose to be treated as resident aliens, regardless of whether you entered the US before or after July 3rd of 2017. As said since you arrived before July 3rd of 2017, you are already dual-status. If you started the year out as a nonresident, became a resident during the tax year of 2017 by meeting 183 day SPT when the year comes to an end, you will not be required to file Form 1040NR. You will be allowed to file a joint return with your spouse using a regular Form 1040.
I assume I am fine to claim dependents tax even after if my Spouse and Kids arrive after July 3rd 2017? as I am already here before July 3rd 2017



Quote:
you can claim them as dependents on your return aslognas The person must have made less than $4.5K in gross income during 2017. And you must have provided more than half of the individual's total support during the year
When you say more than half of the individual's total support I hope that doesn't really need them to be in US with half year at least i.e arrive before 3rd July 2017?

Thanks in advance.



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Old 04-23-2017, 03:53 PM
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Originally Posted by taxpayer123 View Post


#1:I assume I am fine to claim dependents tax even after if my Spouse and Kids arrive after July 3rd 2017? as I am already here before July 3rd 2017





#2;When you say more than half of the individual's total support I hope that doesn't really need them to be in US with half year at least i.e arrive before 3rd July 2017?

Thanks in advance.
#1:correct since the dependents are qualifying relatives not qualifying children; on your joint return you need to report not only US source but world wide source income that you and your spouse earned in US and overseas.


#2:you do need to meet the requiremnt; I mean that means You must have provided more than half of the individual's total support during the year.



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Old 04-25-2017, 08:31 PM
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I appreciate your timely response.Thank you!



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Old 05-05-2017, 09:46 PM
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#2:you do need to meet the requirement; I mean that means You must have provided more than half of the individual's total support during the year.[/quote]

I found there are some requirements to be met to claim a child as dependent, in which under Residence Test I read as below which means they must arrive in US before July 3rd and stay with me for rest of the year?

The child must have lived with you for more than half of the tax year for which you claim the credit.



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