Claiming a dependent in Mexico, non- US Citizen with ITIN.

Forum|Forum|6 years ago
December 7, 2019
15 replies
33 views

Taxpayer claims sister who lives in Mexico, is NOT a US citizen and has an ITIN. Based on what I've read and IRC 24(h)(4)(b) it looks like the $500 non-refundable credit would not be allowed?

Am I reading that correctly?

I bring all this up as PS allows credit which makes me question what I've read.

Thanks!

ProSeries Professional

This topic has been closed for replies.

Best answer by TaxGuyBill

Correct, it would not be allowed.

However, if you enter it correctly, ProSeries does not allow the credit. You need to be sure to check the NEW box on the information worksheet that dependent does not qualify for the credit. If the sister is under age 17, you also need to check the non-US box.

T

TaxGuyBillAnswer

Correct, it would not be allowed.

However, if you enter it correctly, ProSeries does not allow the credit. You need to be sure to check the NEW box on the information worksheet that dependent does not qualify for the credit. If the sister is under age 17, you also need to check the non-US box.

G

garman22

Author

Intuit Community Champion

Bill, I am confused now. You are correct. If I enter ITIN, Other Dependent, and 0 mo's lived with taxpayer and we know this dependent lives in Mexico.......PS will allow credit. You would "manually" have to check box for this credit to not populate.

My question still stands.....in re: to this unique situation, is she NOT entitled to the $500 credit? This "dependent's" ITIN expires this year. It would be pointless to renew if taxpayer is NOT allowed this $500 credit as dependency exemptions are $0.00.

In 2017, we were allowed to claim this dependent (assuming all qualifications are met) and we received our dependency exemption.

It seems to me the law would allow Mexican citizens (with ITIN's) to be claimed as dependents on a US citizens assuming all qualifications are met.

BUT....I cannot confirm this with any Code Sections.