Make sure you meet all of the requirements before you try to claim your parents as dependents on your U.S. income tax return.
Claiming parents is difficult, but it can be done if you pass the “Qualifying Relative” tests. But first, here are the two biggies that tend to get in the way:
- You cannot claim a married person who files a joint return with his or her spouse. So if your parents file a joint tax return in the United States, then you won’t be able to claim them. (I’m guessing they don’t, but I wanted to make sure that I told you about that.)
- To claim someone as a dependent, the person must be a US citizen, US resident alien, US national or resident of Canada or Mexico. Where my clients have had trouble before is when their parents visit the US, but their visas are only for 6 months, no longer. Then they don’t qualify as US residents. I just wanted to make sure you knew about the 6 month rule because that’s the issue most likely to cause Indian families trouble with claiming their parents. After that, the rules are the same for anyone else in America who wants to claim their parents on their US income tax return. You need to pass the qualifying relative test.
The Qualifying Relative Test has 4 parts:
- They cannot be considered a qualifying child of anyone else. No problem! As your parents, I’m guessing they’re both over the age of 24. Easy pass.
- Member of household or relationship test. As your parents, they do not have to live with you. Also, since they are your parents, they automatically pass the relationship test. Easy pass.
- Gross income test. This one is harder. They cannot have more than than $4,050 in gross income for the year. If they are retired, they might qualify, but if they are receiving a taxable pension, that could kick them out of being a dependent. In the US, for example, my mother in law receives Social Security income which isn’t taxable and it doesn’t count as gross income. Her other income is less than $4,050 so she would pass the gross income test for me to claim her as a dependent. Remember, once your parents become US residents, they will be taxed on their “world wide income.”
- Support Test. In order to claim your parents as dependents, you must provide more than 1/2 of their support. Let’s say that your parents each earn $3,000 a year in some type of pension. For you to be able to claim them as dependents, you would have to pay more than $3,000 for support for each of them. For example, if they live with you, then you would consider part of your rent or mortgage to be towards their support. Also food, clothing, medical expenses, etc. If they don’t live with you, who is paying for their rent, food, clothing, etc.? Using my mother-in-law as an example again: although I pay some of her bills, I definitely don’t pay over 1/2 of her support. She pays for her food and rent with her Social Security money so I don’t come close to the 50% of her support.
If you do find that you qualify to claim your parents, then you would complete the W7 forms for them, so that they have an ITIN number, and submit them with your next tax return. I find that the best way to handle the W7 form is to take your tax return in to the nearest IRS office with your supporting documents (like passports) and submit them there. Although it might be inconvenient making the trip, it will save you a lot of hassle in the long run.
Hi Phani,
In order to claim a dependent on your tax return, the dependent must be a US citizen, a US national, a US resident alien, or a resident of Canada or Mexico. Your parents do not qualify, I’m sorry.
Hi Jan,
My parents came here on a visitor’s visa on April 2015, we applied for their green card on August and they got approved on the second week of December 2015. I know I can claim them as dependents on my tax return but will I get penalized because they do not have any health care coverage on 2015? We are still waiting for their SSN card so I am unable to apply medical coverage for them.
Thanks!
Hi, My In laws visited us this year and they stayed with us 177 days , less than 6 months. Can I claim them as dependents for this financial year? Note that they don’t have any income in US or India. If I can claim, what documents I needed this year? I took International visitor insurance while they are in US.
Last time when they visited us in the year 2009, i got the ITIN and was able to claim them as dependents. I believe that time the rule says they should have stayed between 156 days to 183 days but I believe that time they stated with us for 181 days.
Can we claim them as Dependents even when they are not in US as I support them as they don’t have any income in India?
Hi Uprenda,
The exemption for 2015 is $4,000USD so it sounds to me like you can claim your parents. If your Dad does file, he cannot file as married filing jointly. But since his income is only $3300, he isn’t required to.
Hi,
We applied green card for our parents last November (2014). They got their green card in October of this year (2015). My dad gets a pension equivalent to $3300 in India. Can I claim them as dependents on my 2015 tax returns? Or should my dad file tax returns?
Hi Sammy,
You and your parents are US citizens, so even though they live out of the country, if you are supporting them, you might be able to claim them. The problem I see for you is that you might not be providing more than half of their support since your income is so low. Here’s an IRS calculator about claiming dependents that might help you: https://apps.irs.gov/app/IPAR/investigate/IPAR_1/en-US/Attribute~Dependents~global~global/qs%24s1%40TLC_Dependents_Development_Screens_DEPLanding_xint%24global%24global?user=guest
About the Obamacare issue: since your parents are US citizens living abroad, that would be an exemption from the health insurance mandate so that should get you out of that penalty.
So really, the big issue for you is whether or not you truly provide more than half of their support. Also, you mentioned their monthly income. They would need to make less than $4000 a year in taxable income also.
Hi Jan,
I am thinking to claim my parents as dependents ( both older than 75 years) in my tax return because I help them with their monthly income. I am a US citizen and they are US citizens as well. They live abroad but come to USA yearly for a month or 2. They used to have SSI and medicaid when they used to live in USA but they lost both after they moved to overseas.
The question is : Is it ok to claim them on my tax return as depends? if yes, Do I need to fill them with me for Obamacare? Or no ? My yearly income is not that high ($38K) and I am married with no kids.
Jan,
Thank you so much for your reply. It’s very helpful.
Cathy
Hi Cathy,
That’s kind of tricky. If they had received $7000 in social security, then that’s not taxable income so it wouldn’t matter. But, since its’ another type of income, that would be taxable income and then it’s more than the 3950.
You’ve got a few other issues too. For example, if you claim them as dependents for 2014, then you have to provide them with US health insurance – so the penalty for not having the insurance is another issue for your taxes.
So, do they have to file a US tax return? Probably not. Here’s why. If their visa has them as “non-residents’ then their income is from China and they wouldn’t have to report that in the US. If their visa has them so they can be residents, and $7000 apiece is all the income that they’ve earned. then I think they may have earned less than the filing requirement of a married couple. So they should be fine either way.
So while I don’t think you’ll be able to claim them, at least they won’t have to pay taxes either.
Hi Raj,
I’m guessing that your sister is not a US citizen, in which case, you’re out of luck. Now if you sister had become a US citizen, and then you were paying for her education, there may be a way to claim that, but there would be some strict rules.
First, you would need to be able to claim your sister as a dependent. A sister can be claimed as a dependent if you’re supporting her so I’m thinking you would qualify there.
Second her education would need to be an institution that qualifies for financial aid under FAFSA. Mostly those are US schools, but I’ve noticed some Canadian institutions in there Now, my son attended college in Scotland, but I paid his tuition through a US college so we still qualified to claim the college tax credit for him. Had we paid the tuition directly to the Scottish institution, then I would not have been able to claim the tax credit.
So, from what you’re telling me, I don’t think you will be able to claim your sister for a college tax credit on your taxes. Sorry.
Hi Jan,
I am a green card holder. My parents came and stayed with me for over 183 days in 2014. I paid for all the expense when they are in the U.S.They are Chinese citizens, both retired, each receives about $7000 retirement payment/year from China. They have no U.S. sourced income. Can i claim them as dependents on my 2014 1040? I am not sure whether the $7000 retirement payment is considered taxable or exempt in meeting the lower than $3950 gross income requirement. If I don’t claim them as dependent, are they required to file a U.S. tax return?
Thank you in advance!
Cathy
Hi Jan,
I am sponsoring my sister for her education back in my home country for a NRI quota medical seat. Can I claim this on my taxes ? If so any limits on this ?
Hi Janice
Are there guidelines to determine whether insurance from a foreign insurance provider qualifies as minimum essential coverage under the ACA? My parents are green card holders and I’m wondering if I can buy their health insurance from a foreign provider, whose coverage and premium are a lot more reasonable than what I can purchase in the US.
I’ve seen your earlier answers on this topic, but need help on how to determine whether the policy meets the minimum requirements.
-Prasanna
Thank you Jan.
Hi UB,
I’m sorry about the death of your father.
Yes, if your mother is allowed to stay in the US, then you will be able to claim her as a dependent on your tax return.
Hi,
I had to bring back my mother to USA on 23 Jan 2015 since my father passed away. She was a house wife and never had a job. She is on a visa that only allows her to stay for 6 months, but due to her medical condition, I have applied for an extension that could allow here to stay here till early next year.
If she is granted that extension, can I claim her as a dependent and file for W-7 for her?
Would like to seek your input on claiming my mother-in-law as a dependent.
. my wife is a US citizen, and I am a US permanent resident
. my mother-in-law lived all most all of 2014 (11 months) with us in US
. my mother-in-law became a US permanent resident in 2014
. my mother-in-law doesn’t have any income in US, or India
. my father-in-law has pension in India, much less than $3000
. they both own some rental properties but the income is much less
. pension and rental combined would be much less than $3000
I am trying to figure out if I can claim my mother-in-law as a dependent. If so do I need to produce all the income documents for both mother-in-law and father -in-law.
Also, would it make sense to apply for US permanent resident status for my father-in-law considering global income etc.,
My parents are citizens but do not live in USA for the whole year so can you still claim them as dependents. They do not have any income so what are the requirements to claim them as dependents?
Hi DV,
If your parents are citizens, then you can claim them as dependents if they meet the other requirements. You don’t have to prove anything on the actual tax return, only if you are audited. So ask yourself, what is their income, do you provide more than half of their support?
Hi Harby,
Because your parents are residents of Canada, you might be able to claim them as dependents if they meet the other requirements for being claimed.
Hi Tess,
Unless your children are in Canada or Mexico, you cannot claim them on your tax return if they are not in the US.
Hi Surya,
Since you did not arrive in the US until 2015, you will not be filing a 2014 tax return. Later, in 2016 when you file your 2015 tax return, you may be able to file as married filing jointly. You will need to get an ITIN number for your wife. You will do that when you file your 2015 income tax return.
Ade,
your children are living in Nigeria. You cannot claim them on your tax return.
1)I would like to find out if my parents live in india but they are citizens of US can i show them on my tax returns as dependents ?
2) how can i show spending on the living of my parents staying in india?
Hello,
I am a permanent resident of Us and parents are permanent residents of Canada.
My mom had a brain Trauma and has been recovering in and out of the hospital for the entire year. My dad was not able to work .
My Mom receives old age pension and my dad just started receiving during November.
Can i claim them as dependents or receive and credits for my flying there to take care of my mom couple times.
Hi jan
I am in work permit for the last 2 years . I have children back home can I claim tax return.since am supporting them .
I am on H1 visa came to usa in Jan 2015 for first time,My wife will be coming in march 2015 or april .Currently I didn’t show her as dependent and filled form as married filing single.Can you please tell whether I can take benefit of dependent tax return from now only as she will be coming soon.Or I can take benefit of tax return only when she come here in usa.
Hey, I have two kids living in Nigeria am paid their school fees and feeding money every month .. I want know if can put them as dependent and I I can apply for ITIN numbers them… I have two birth certificate carry my name as father… Please how can do it or apply and put them of my taxes.. Thanks
Hi Usha,
Your situation is different. You are the wife and your children are the children. You can get an ITIN. You can be on the tax return. If you had no income in your home country, then you can elect be be treated as a US resident for tax purposes. (You might not want to if you had income in your home country because it would be taxed.)
But you can choose to be taxed as a US resident, and your children count as having lived with you so they can be dependents on your tax return.
Hi jan
My husband is working in texas. Me n our 2 kids joined him in the month of july. So we dependents are residing with him, but not completed half year in 2014. Are we eligible for iTin.
is there any other ways to fulfill the criteria, because I heard of getting affidavit from indian embassy for dependents.
Please suggest
thank you
Hi Giri,
The first question is going to be “why do your parents need an ITIN number?” Generally, you apply for an ITIN when filing your first tax return. If your parents are in India, then why are they filing a US tax return?
So, I’m assuming there’s a valid reason for them needing the ITIN. If they are going to be in the United States any time soon, I would wait until they are here and go to a valid IRS office in person to register for an ITIN number. Yes, it’s a hassle, easier than obtaining the passport copies
The certified document copy must be from the same issuing agency as the original passport. And just as a heads up–I had a client whose certified passport copy was rejected even though it was from the same agency because the signature was different–the governement official who signed the original passport had retired or died or something and the new offical signed the copy and the IRS sent it back I just want to warn you–sometimes it’s not always easy.
So, if they are going to be in the US–even if you have to wait awhile for them, it’s easier to file for the ITIN while they are here. But, if that’s not going to happen and they really do need an ITIN, then go for the certified copy. Good luck.
Hi Jan,
Greetings & Wishes!
Request to share your expert advice on how to apply certified passport copies for my parents( they currently live in India / Indian citizens – also am currently in H1b visa). also Heard recently that we ( tax filers) can apply for ITIN even though parents live in india. If this is certain, pls advice whats the procedure exactly with your guidelines.
Hi Prasanna,
Because your parents have green cards, they are treated like US residents for tax purposes even if they are out of the country. Now, the US taxes worldwide income. So if their worldwide income is less than $3000 US, then you wouldn’t need to file for them because their income is below the filing requirement. (And they wouldn’t owe any tax anyway.)
Now, you might want to file a return for them anyway, even though they aren’t required to and they won’t owe any tax–only to prevent identity theft. They’re out of the country, they have social security numbers, their identities would be considered “valuable” for tax fraud if someone were to get ahold of those numbers. That’s why I like to file even when people don’t have to. Just to protect the social security number. But you do not have to. That’s just my little quirk.
Hi Jan
My parents got their greencard in March 2014, but spent less than 6 months of 2014 in the US. From your replies, it’s clear that I can’t claim them as dependents on my return. But since their 2014 income is less than USD 3000 _and_ they’ve spent less than 6 months in the US, do I have to file a return for them?
Thanks!
Prasanna
Hi Dattasai,
You ask a really good question. This is how I interpret the rules. I could be wrong, but I believe I am interpreting this correctly. I just want to make clear that this is my interpretation, I can’t find an IRS notation that specifically gives me a yes or no answer.
First–since your parents have no income, they are not required to file a US income tax return, so if you chose not to claim them as a dependent they would not have to have insurance.
Second–they do not have to have Obamacare insurance to qualify as having insurance, they just have to have insurance that is as good as Obamacare insurance.
So, I think you have some steps to take. First, I would take out the Traveler’s insurance policy and compare it to the minimum coverage at the Healthcare.gov website. Or, you can probably just call your insurance agent as ask him. He can probably tell you.
If the insurance is “good enough” then you just say they are insured and claim then as dependents.
Now, if their insurance doesn’t qualify as minimum coverage, then you have a choice–don’t claim them as dependents, or, claim them and just pay the penalty. Depending upon your income and how much claiming your parents helps your taxes, you’ll want to run the numbers to see if it makes sense to claim them or just leave them off of your return.
What I’m saying here is–if you are able to claim your parents as dependents–then that would make them resident aliens. A resident alien is required to have health insurance. (If they are required to file.) Your parents aren’t required to file by themselves, but once you claim them as a dependent, then you are accepting the responsibility of seeing that they have minimum coverage. So, if you’re claiming them as dependents, if their health insurance doesn’t meet the minimum requirements, then you’ll have to pay the penalty.
Hi Jan-
My parents are visiting me in US on visitors visa( B2 ), fortunately they got their extension of stay approved by USICS for 6 months and they hence they stayed here for entire 12 months, from Jan 2013 to Jan 2014. (>183 days of substantial presence).
My question here is:
1. As per new obamacare act, Do they need to have Obamacare provided insurance, if I need to claim them as dependents for tax purposes? ( They have no income in or ouside US as they are retired, and I was bearing the expenses while they were in US)
I brought a Travelers insurance for them which covers Preexsisting conditions but I am not sure if that Ida valid form of insurance for claiming them as dependents for tax purposes)
2. Also, few years back when they stayed for a year on visa extension, I was able to get ITIN and claim them as dependents. Only this time with Obamacare, I am not clear what the rules are for non-immigrants on visitor visa but passing substantial pressence test. Of you find any links those will be very helpful. For now, yours was the closest I could find online on these issues..
Thank you for your time and effort in answering so many questions.
Hi Kumar,
You’re asking a really good question. Here’s where I’m getting the definition of a resident alien: http://www.irs.gov/taxtopics/tc851.html
That’s how I come up with the 183 days.
Now, on the W7, they ask for the date of entry that you are using to substantiate the reason for your needing the W7. In the example they use in the instructions, they are using the later date because it was someone who was a tourist but later getting job.
Your situation is different. Your parents were here early, being supported by you, then they left, then hey came again. So for your purposes, I would use the earlier date. Yes, they left the country again, but their presence in the US for your purposes because with the earlier visit.
Does that make sense?
Realize that it’s going to be a bear getting these ITINs and actually claiming them.
Hi Jan,
I am lil confused on the number of days count and multiple entry to US.
My parents on visitor visa were in US for a month early this year and left to india.
and then they were back in US again the same year for just about 6 months stay.
So the total number of days they stayed in US was close to 190 days. Do they qualify for ITIN? In W7 form , the length of stay is based on last entry to U.S and based on which they fall short of 6 months. Do you have any suggestions
-Kumar
Hi Garry,
You can’t claim them for 2013 since they were only here for 120 days, but that’s not your question. You want to know about 2014.
So they left in March of 2014. They came back in June 2014 and left in November 14. Since you don’t give me exact dates, I’m going to assume they came on June 30- just to be difficult. And I’ll assume they left on November 1, just to be even more difficult. So, July, August, September, and October makes 123 days. But, there were here from January 1 through at least February 28, right? That’s another 59 days so now we’re at 182 days. And, it could be even more since I’m being absolutely strict about when they came and went. Technically, they need to be here for 183 days, but I’m pretty sure you’ve got that other day.
It sounds to me like you’ll be able to claim both of your parents since they have not income then they don’t have to file a US tax return at all. The difficult part for you will be obtaining an ITIN for them. It might be easier if you submit the tax return with the W7 in person at an IRS office that accepts W7s. That way their passports can be examined and the paperwork gets stamped and sent on.
If they are not going to be back in the US during tax season, you can always file your return for now without them, and amend the returns claiming them as dependents when they are back here. You’ve got three years to amend a return so there’s no big rush there.
Hi,
I have same question as above for tax filing for my Parent visiting from India. actually my parents came to USA in Sept 2013 and went back on march 2014. once again they came to USA in June 2014 and left on Nov 2014 (5 and half Months). So, they spent more than 180 days. Right?can I show them as my dependent. both my parents are retired in India and not required to file tax there as no income. Please let me know.
Hi Mohit,
yes you can claim your wife to do a married filing jointly tax return. In your case, she would “make an election” to be treated as a US resident for filing purposes.
The good: you get married filing joint tax treatment on your US tax return. It’s a better tax rate and you get her exemption and a higher standard deduction.
The bad: the US taxes world wide income. So if she did have any income back in India, the US would tax it.
Here’s a link to the IRS website that explains how to make that election: http://www.irs.gov/Individuals/International-Taxpayers/U.S.-Citizens-and-Resident-Aliens-Abroad—Nonresident-Alien-Spouse
I am living in US from May, 2013 and filed my 2013 income tax as US resident. My wife joined me on May, 2014 and went back to India in Oct, 2014. Can I include my wife my income tax return and file it as joint return, she is not working in India.
Moreover she came in June,2013 as well for 4 months but I did not included her in income tax return at that time.
I really appreciate your response on this !!!
Hi Sharan,
I’m sorry but you won’t be able to claim your in-laws on your tax return for 2014. They must live in the United States for at least 6 months during the year.
Hi,
My in-laws were here for last 2 months and since my father-in-law was sick they had to leave to India.My father in law is hospitalized now. We support them financially all through the year and the medical expenses in India. They are retired and their monthly pension is less than $300. Can we claim them as dependent for a tax break for the year 2014? I really appreciate your response.
Thank you!
Hi Vijay,
Yup. Catch 22. Welcome to America.
Hi Benny,
I would say yes, you can claim your mother. Assuming she meets all the other tests, but it sounds like she does.
My mom came in January 2013 on a tourist visa. She stayed the entire year except for two months, and at the end of the year we filed her green card application. She received her green card in 2014.
I think all this means I can claim her for 2013, since she was here for more than 6 months and even though she did not have her green card until the following year. Is that correct?
Hi,
My mother flew to the U.S. on a tourist visa in January 2013. She stayed here for most of the year – about 11 months, and during the year we applied for her green card. Her green card was issued in 2014. My question is – can we claim her as a dependent for 2013, even though she didn’t receive her green card until 2014. We paid all of her expenses, and she had no income.
Thank you!
Thank you! Just curious: We have signed financial support form 864 to get my parent’s green card. They are not eligible for any government support and are not in position to support themselves for independent living. Per the signed agreement we are supporting all their needs. Given this, it seems little “catch 22” ish to not be able to claim them as our dependent. Your thoughts.
Hi Vijay,
Since your dad makes over $12,000 USD equivalent, you may not claim him as a dependent on your tax return. He should file his own return, but with the exemption for married filing jointly he should pay no federal income tax.
Since he is a US resident, he needs to report his worldwide income.
One more thing, if he still has bank or investment accounts in India, he should also be filing an FBAR.