Originally Posted by taxpayer123
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.