Claiming foreign parents as dependents
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 Dear
Tax Talk,
Can my parents, who are not citizens but green card holders of the U.S., be listed on my income tax return as dependents? They live in another country, and I support them 100 percent financially. Thank you.
-- Cho
Dear Cho,
The dependency exemption requires
that you run through various tests to see if that individual qualifies as an exemption
for you. One of the most important tests in your situation is that your parents
have to be U.S. residents. By virtue of their green cards they are residents for
income tax purposes even though they do not reside here. Since your parents are
considered U.S. residents you need to look at the other tests.
A person can be your dependent if he or she is a qualifying child or qualifying
relative. There are four tests that must be met for a person to be your dependent
as a qualifying relative.
 |
The four tests are: | |
|
| 1. | Not
a qualifying child test. | | 2. | Member
of household or relationship test. | | 3. | Gross
income test. | | 4. | Support
test. | |
Obviously, your parents
are not your qualifying child, so you meet that test. Since your parents meet
the relationship test, they do not have to be a member of your household to be
claimed as a dependent. Under the gross income test the person must have less
than $3,300 in gross income; Social Security benefits do not count. As
U.S. residents your parents are still obligated to file U.S. tax returns to report
their gross income wherever earned. To be claimed as dependents, each has to be
under the gross income limit. To meet the support test, you generally must provide
more than half of your parents' total support during the calendar year. Since
you support them completely you would be able to claim them as your dependents. To
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