child tax credit

Old Feb 25th 2004, 11:43 pm
  #1  
Forum Regular
Thread Starter
 
Joined: Oct 2002
Posts: 237
gracejilly is an unknown quantity at this point
Default child tax credit

has anyone filed a W7 (application for Tax ID#) for their resident alien spouse's children who live abroad so that you can take the child tax credit on your return?

From reading the instructions, it states that if you chose (d) tax id for dependent of alien resident, you can get a tax id # for children who are not eligible for a Social Security #.

I was told on the IRS helpline that you take the child credit on your return and file the return with the W7 for the child to a different IRS unit than normal. Then the IRS determines whether they are eligible and either processes your return or amends it. This takes something like 6 to 8 weeks longer than normal to process your return.

Our kids are here with us about 5 months out of the year, and we send support (though, not ordered by any legal doc) every month to their mom. I know child support is not deductible but had heard you might be able to use the tax credit?


Any experiences out there?

Thanks all,
Jill & Kenny
gracejilly is offline  
Old Feb 26th 2004, 1:20 am
  #2  
Member
 
jeffreyhy's Avatar
 
Joined: Apr 2001
Posts: 14,049
jeffreyhy has a reputation beyond reputejeffreyhy has a reputation beyond reputejeffreyhy has a reputation beyond reputejeffreyhy has a reputation beyond reputejeffreyhy has a reputation beyond reputejeffreyhy has a reputation beyond reputejeffreyhy has a reputation beyond reputejeffreyhy has a reputation beyond reputejeffreyhy has a reputation beyond reputejeffreyhy has a reputation beyond reputejeffreyhy has a reputation beyond repute
Default Re: child tax credit

Jill and Kenny,

I submitted a W7 for my stepson a few months ago and got an ITIN for him, but that was just before the change to the present system whereby W7s must now be submitted with a tax return to ensure that the ITIN is being used for its intended purpose. I am not at all certain that I can claim my stepson as a dependent on my return because he is still a non-resident alien. I am waiting for the opinion of my tax preparer on this.

Your case may be different if your stepchildren spend a significant amount of time in the country and you pay support. You should consult with a professional tax preparer on this.

Regards, JEff

Originally posted by gracejilly
has anyone filed a W7 (application for Tax ID#) for their resident alien spouse's children who live abroad so that you can take the child tax credit on your return?

From reading the instructions, it states that if you chose (d) tax id for dependent of alien resident, you can get a tax id # for children who are not eligible for a Social Security #.

I was told on the IRS helpline that you take the child credit on your return and file the return with the W7 for the child to a different IRS unit than normal. Then the IRS determines whether they are eligible and either processes your return or amends it. This takes something like 6 to 8 weeks longer than normal to process your return.

Our kids are here with us about 5 months out of the year, and we send support (though, not ordered by any legal doc) every month to their mom. I know child support is not deductible but had heard you might be able to use the tax credit?


Any experiences out there?

Thanks all,
Jill & Kenny
jeffreyhy is offline  
Old Feb 26th 2004, 2:03 am
  #3  
Michael D. Young
Guest
 
Posts: n/a
Default Re: child tax credit

gracejilly wrote:

    > has anyone filed a W7 (application for Tax ID#) for their resident alien
    > spouse's children who live abroad so that you can take the child tax
    > credit on your return?
    > From reading the instructions, it states that if
    > you chose (d) tax id for dependent of alien resident, you can get a tax
    > id # for children who are not eligible for a Social Security #.
    > I was
    > told on the IRS helpline that you take the child credit on your return
    > and file the return with the W7 for the child to a different IRS unit
    > than normal. Then the IRS determines whether they are eligible and
    > either processes your return or amends it. This takes something like 6
    > to 8 weeks longer than normal to process your return.
    > Our kids are
    > here with us about 5 months out of the year, and we send support
    > (though, not ordered by any legal doc) every month to their mom. I know
    > child support is not deductible but had heard you might be able to use
    > the tax credit?

http://www.irs.gov/publications/p3/ar02.html#d0e4064

Qualifying Child

A qualifying child for purposes of the child tax credit must be all of the
following.

-- Under age 17 at the end of 2003.

-- A citizen or resident alien of the United States.

-- Claimed as your dependent.

-- Your:

** Son, daughter, stepson, stepdaughter, or adopted child (or a descendant
of your son, daughter, stepson, stepdaughter, or adopted child—for example,
your grandchild),

** Brother, sister, stepbrother, or stepsister (or the child or grandchild
of your brother, sister, stepbrother, or stepsister) if you care for the
individual as you would your own child, or

** Eligible foster child.
 
Old Feb 26th 2004, 2:07 am
  #4  
Michael D. Young
Guest
 
Posts: n/a
Default Re: child tax credit

gracejilly wrote:

    > has anyone filed a W7 (application for Tax ID#) for their resident alien
    > spouse's children who live abroad so that you can take the child tax
    > credit on your return?
    > From reading the instructions, it states that if
    > you chose (d) tax id for dependent of alien resident, you can get a tax
    > id # for children who are not eligible for a Social Security #.
    > I was
    > told on the IRS helpline that you take the child credit on your return
    > and file the return with the W7 for the child to a different IRS unit
    > than normal. Then the IRS determines whether they are eligible and
    > either processes your return or amends it. This takes something like 6
    > to 8 weeks longer than normal to process your return.
    > Our kids are
    > here with us about 5 months out of the year, and we send support
    > (though, not ordered by any legal doc) every month to their mom. I know
    > child support is not deductible but had heard you might be able to use
    > the tax credit?
    > Any experiences out there?
    > Thanks all,
    > Jill & Kenny
    > --
    > Posted via http://britishexpats.com

http://www.irs.gov/instructions/i104...01.html#d0e557

Substantial Presence Test

You are considered a U.S. resident if you meet the substantial presence test
for 2003. You meet this test if you were physically present in the United
States for at least:

31 days during 2003 and

183 days during the period 2003, 2002, and 2001, counting all the days of
physical presence in 2003, but only the number of days of presence in 2002
and only the number of days in 2001.
 
Old Feb 26th 2004, 2:11 am
  #5  
Mtravelkay
Guest
 
Posts: n/a
Default Re: child tax credit

Michael D. Young wrote:

    > Substantial Presence Test
    >
    > You are considered a U.S. resident if you meet the substantial presence test
    > for 2003. You meet this test if you were physically present in the United
    > States for at least:
    >
    > 31 days during 2003 and
    >
    > 183 days during the period 2003, 2002, and 2001, counting all the days of
    > physical presence in 2003, but only the number of days of presence in 2002
    > and only the number of days in 2001.
    >

This sounds like it means they had to be present at least 183 days in
each of 2001 and 2002, AND 31 days in 2003. (or am I confused?)
 
Old Feb 26th 2004, 9:53 am
  #6  
Michael D. Young
Guest
 
Posts: n/a
Default Re: child tax credit

mtravelkay wrote:

    > Michael D. Young wrote:
    > > Substantial Presence Test
    > >
    > > You are considered a U.S. resident if you meet the substantial presence test
    > > for 2003. You meet this test if you were physically present in the United
    > > States for at least:
    > >
    > > 31 days during 2003 and
    > >
    > > 183 days during the period 2003, 2002, and 2001, counting all the days of
    > > physical presence in 2003, but only the number of days of presence in 2002
    > > and only the number of days in 2001.
    > >
    > This sounds like it means they had to be present at least 183 days in
    > each of 2001 and 2002, AND 31 days in 2003. (or am I confused?)

It's 183 total, but at least 31 of the 183 had to be in 2003. It's a bit clearer
on here:

http://www.irs.gov/taxtopics/tc851.html

The second test is the "substantial presence test." To meet this test, you must
have been physically present in the United States on at least 31 days during the
current year, and 183 days during the 3 year period that includes the current year
and the 2 years immediately before. To satisfy the 183 days requirement, count all
of the days you were present in the current year, and one–third of the days you
were present in the first year before the current year, and one–sixth of the days
you were present in the second year before the current year.
 
Old Feb 26th 2004, 8:30 pm
  #7  
Mtravelkay
Guest
 
Posts: n/a
Default Re: child tax credit

Michael D. Young wrote:
    >
    > It's 183 total, but at least 31 of the 183 had to be in 2003. It's a bit clearer
    > on here:
    >
    > http://www.irs.gov/taxtopics/tc851.html
    >
    > The second test is the "substantial presence test." To meet this test, you must
    > have been physically present in the United States on at least 31 days during the
    > current year, and 183 days during the 3 year period that includes the current year
    > and the 2 years immediately before. To satisfy the 183 days requirement, count all
    > of the days you were present in the current year, and one–third of the days you
    > were present in the first year before the current year, and one–sixth of the days
    > you were present in the second year before the current year.
    >

Ah... so it isn't 183 actual days as the previous post (from another IRS
doc) said "but only the number of days of presence in 2002 and only the
number of days in 2001." You actually count all of the days in the 2003
, but only 1/3 of the days in 2002 and 1/6 of the days in 2001. So, it
they were here for 5 months a year, it would be about 150 + 150/3 +
150/6 = 225, and since 225 > 183, and they were here more than 31 days
in 2003, they could be counted for the 2003 tax credit. Thanks, it is
more clearer now that the missing information is filled in.. The other
doc seems to have dropped the fractions.
 

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service -

Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.