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H1B Dependent Tax Exemption

H1B Dependent Tax Exemption

Old Jan 30th 2002, 5:10 pm
  #1  
Jordan
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Hi.

Time to file tax.

Anyone know if H1B dependent can be counted as Standard
exemption (USD2800/people)? Does IRS required the H1B holder
have to be Treaty Nationals such as Mexico and Japan, Korea
(as in Form 1040NR) to have this dependent exemption??

Anyone have real experiences?

Thanks.

Jordan
 
Old Jan 31st 2002, 4:17 am
  #2  
Eugene Mishura
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Yes, you can claim dependants on your tax return. As far as I remember the dependent
should meet residency test requirements. No requirements about nationality. They
treat differently with a spouse and with other dependants such as children. I
remember my first year on H1 visa I was able to claim my wife as dependant but was
not able to claim my daughter because she (daughter) was not in the US for at least
180 days at the end of the year.

You should read IRS publication 519 "U.S. Tax Guide for Aliens". It can be found at
IRS web site http://www.irs.gov/pub/irs-pdf/p519.pdf

To include dependants on your tax return they should have SSN of ITIN (individual
taxpayer identification number). In many states H4 visa holders are not eligible for
SSN. If this is your case, you should come to your local IRS office and file
application of ITIN number (form W-7). You will be requested to produce dependant's
passport with visa and I-94 form.

Hope it will help,
Eugene


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Old Jan 31st 2002, 1:10 pm
  #3  
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Originally posted by Jordan
Hi.

Time to file tax.

Anyone know if H1B dependent can be counted as Standard
exemption (USD2800/people)? Does IRS required the H1B holder
have to be Treaty Nationals such as Mexico and Japan, Korea
(as in Form 1040NR) to have this dependent exemption??

Anyone have real experiences?

Thanks.

Jordan
Claiming dependents had nothing to do with your H1B!!!!!
First of all you need to file 1040 not 1040 NR to be able to claim somebody as dependent. ...beside the residency test that needs to be passed.
So, you need to be resident of the state you are leaving in to be able to file 1040.
In my state, I had to wait 5 years! When I was filing 1040NR I claimed once my daughter as dependent (US citizen) - was an honest mistake, it was not on purpose. Well, I was called from the IRS...that guy who called me was really, really nice: he wanted to appologize that he had to reject my claim: my child had all the right, but I had no rights to claim her rights considering my status.
Well, after 4 more years when I started legally to file 1040, everything was fine!

Let me tell you something: you can claim whatever you want, but if you want to play hardball, you'll be sorry someday! So, be honest, follow the law. It's true, I know people who got away with this...but this is not fair...


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Old Jan 31st 2002, 5:27 pm
  #4  
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I may be wrong but this is how I read Pub 519.

If you are a resident for tax purposes (meet residency requirements) you CAN claim exemptions for your dependants.

If you are a non-resident for tax purposes (do not meet residency requirements) then you can only claim one personal exemption ($2,900 for 2001).

Sue
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Old Jan 31st 2002, 6:23 pm
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Originally posted by Sue
I may be wrong but this is how I read Pub 519.

If you are a resident for tax purposes (meet residency requirements) you CAN claim exemptions for your dependants.

If you are a non-resident for tax purposes (do not meet residency requirements) then you can only claim one personal exemption ($2,900 for 2001).

Sue

My episode with the IRS happened in 1994. I was at that point for 2 years (full years) in USA.
In those publications you have to be very careful what you are reading: better talk to somebody...things might change in time!

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Old Jan 31st 2002, 6:45 pm
  #6  
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If you meet the residency requirements, then for tax purposes only you are a resident. Perhaps they have changed the rules since 1994.

Although I must admit trying to figure out the days in a tax year you meet residency requirements is not as easy as it looks

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