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I have a client that on previous years had claimed his father as his dependent. His father lives in Mexico, he doesn't have a SSN he has an ITIN. He doesn't have any income and doesn't receive a pension. He is the only one support him and he does support him more than 50%.
Does he qualifies for this new credit for other dependent? Otherwise with the removal of the exemptions I do not see any benefit to claim him anymore.
Thank you.
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No, the dependent needs to be a citizen or resident of the US to qualify for the $500 credit.
However, claiming the dependent may still have benefits. A few of the possibilities are (1) could qualify for Head of Household, (2) medical expenses would be deductible, (3) household size would be increased for the Premium Tax Credit, and (4) there may be State benefits. There are likely other things as well (I think there is at least one other thing that I am forgetting).
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No, the dependent needs to be a citizen or resident of the US to qualify for the $500 credit.
However, claiming the dependent may still have benefits. A few of the possibilities are (1) could qualify for Head of Household, (2) medical expenses would be deductible, (3) household size would be increased for the Premium Tax Credit, and (4) there may be State benefits. There are likely other things as well (I think there is at least one other thing that I am forgetting).
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No problem about asking the followup questions. With all of the new changes, we are all trying to figure things out.
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Slava Ukraini!
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Conclusively the answer is No.
The only thing I would modify to the prior answer is the portion "resident" includes Canada and Mexico. There is no physical presence in the U.S. to qualify for the credit but the ODC follows the CTC residency requirement rules which require that the taxpayer lived with the dependent all year in the United States which includes any country that is contiguous (Mexico and Canada). Therefore, if your dependent lived with the relative in Mexico and such dependent is a U.S. citizen or meets the green card test, possesses a valid social security card by the time the due date of the return, the person would qualify for the ODC. But I agree with the rest of the answer and also add that certain states have not modified the exemption rules and thus could find a larger return. I would not scratch them out from their individual return if they meet the dependent rules.
Previous answer: No, the dependent needs to be a citizen or resident of the US to qualify for the $500 credit.
However, claiming the dependent may still have benefits. A few of the possibilities are (1) could qualify for Head of Household, (2) medical expenses would be deductible, (3) household size would be increased for the Premium Tax Credit, and (4) there may be State benefits. There are likely other things as well (I think there is at least one other thing that I am forgetting).
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Also, there is NOT a requirement for the dependent to live with you for 6 months.
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(B) Exception for certain noncitizens
Subparagraph (A) shall not apply with respect to any individual who would not be a dependent if subparagraph (A) of section 152(b)(3) were applied without regard to all that follows “resident of the United States”.
https://www.law.cornell.edu/uscode/text/26/24#h
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In order to get the $500 credit, a person must be classified as a Citizen, National or Resident of the United States. A Citizen, National or Resident of Mexico or Canada would NOT get the $500 credit (unless they are also a Citizen, National, or Resident of the United States).