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Dear Tax Talk:
My in-laws, who are Canadian citizens, stayed with us for most of 2007, helping us care for our daughter. I was wondering
if I may claim them as dependents on my return? We provided 100 percent of their financial needs.
-- Greg
Dear Greg,
If you had to put up with your in-laws for almost an entire year, there should be some reward, right? As a U.S. taxpayer,
you can claim an exemption for a dependent that is Canadian or Mexican if you meet all the other rules.
The person must be related to you or have lived in your home for the entire year. Because the parents are related
to you, there is no requirement that they must have lived with you even though they did. The person must have had less than
$3,400 in gross income. You also must provide more than half of their total support. Total support includes amounts spent to
provide food, lodging, clothing, education, medical and dental care, recreation, transportation, and similar necessities.
In order to claim your wife's parents,
they will need to obtain individual tax identification
numbers or ITINs, as they are probably not eligible
for Social Security numbers. Use Form
W-7 to apply for an ITIN with the Austin,
Texas, IRS center.
Under reason for applying, you would check box "d," "Dependent of U.S. citizen/resident alien," and complete the remaining information, submitting the
appropriate documentation to establish identification. Allow the IRS six to eight weeks to issue the ITINs.
Because the ITINs won't arrive by April 15, you may want to consider an extension. However, extending your return
will cause a delay in receiving your stimulus payment. You can file timely and later amend your return using Form 1040X to
claim the in-laws.
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