Children in Mexico

[ASHM]

I have a client, US citizen,   married a Mexican residents that has 2 children.  He maintains 2 households, one in US and one in Mexico.   He travels between the countries for business.   The wife travels with him and is applying for an ITIN.  The children stay in Mexico for educational reasons and are not applying for ITINs.  They are under 17.   

Without ITINs, I see no way for my client to claim these children.   His wife will be on his return and he is filing MFJ.   Am I correct?

[TaxGuyBill]

Correct, they would need ITINs to be on the US tax return.

But if the kids are not US Citizen or US Residents, there might not be any tax benefit on the Federal return anyway.

[BobKamman]

@TaxGuyBill  Time to review Dependents 101 from the first day of Tax Class.  Residents of Mexico qualify.  

[TaxGuyBill]

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@BobKamman wrote:

@TaxGuyBill  Time to review Dependents 101 from the first day of Tax Class.  Residents of Mexico qualify.  

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Time to review the "other dependent credit" for noncitizens at §24(h)(4)(B).  They qualify as a dependent, but no Child Tax Credit/other dependent credit.

But note that I said there "might not be any tax benefit on the Federal return".  In cases, there could be (for example, increasing the Household Size for the Premium Tax Credit), and there could be a benefit on the State return.

[BobKamman]

That subsection applies only to " each dependent of the taxpayer (as defined in section 152) other than a qualifying child."  These are qualifying children, because they live with their mother, who is one of the taxpayers filing a joint return.  

[TaxGuyBill]

Apparently you need to go back to Child Tax Credit 101 and read §24 in regards to those who are not US Citizens/Residents and don't have Social Security Numbers.