Child tax credit and interest income for dual-status tax payers

[hiro]

My question is similar to this post but the situation is completely opposite.

https://ttlc.intuit.com/questions/4331329-can-i-claim-child-tax-credit-as-dual-status-resident-chose...

I have been a Japanese resident alien since 2013, and left the US in August 2018. I should therefore file the tax return as a dual-status alien. According to Pub 519 and other instruction, I'm supposed to file Form 1040NR. Thus I've read through the 1040NR instruction, and got the following questions: 

1. Can I claim child tax credit? I have two kids who have US citizenship and lived with me throughout 2018 (in the US until August and in Japan since September). According to the 1040NR instruction, Japanese citizens are not allowed to put qualifying dependents on the form, but I'm not sure if this rule applies to dual-status aliens who have been residents until the middle of the year.
2. How can I declare my interest income from US banks? There is no box to put the information from 1099-INT in the Form 1040NR. Or, the interest income is tax-exempt in my case?

I've carefully read many many instructions but couldn't find any answers to these questions, probably because my situation is quite uncommon. I really appreciate it if you help me.

[ryan-here-to-help]

Can you confirm if you are married? If you are married and your partner is a US resident, who did not move out of the US, then you can file jointly with your partner and then you would be able to claim the dependents and the associated credits. 

Assuming that is not the case, and you are a dual status alien filing on a 1040NR you can't claim your children as qualifying dependents and therefore can't claim the child tax credit. 

We are sorry we don't have better news to share with you. 

[hiro]

Dear Ryan, thank you for your answer, and sorry for my late response. I'm married, but with a non-US citizen. I believe that I can choose either Resident or Non-Resident alien status in my situation. One thing I don't quite understand is, in Chapter 6 "Dual-Status Tax Year" of Publication 519, it is stated "Nonresident at end of year. You must file Form 1040NR or Form 1040NR-EZ if you are a dual-status taxpayer who gives up residence in the United States ... You can use Form 1040 as the statement, but be sure to mark “Dual-Status Statement” across the top." Do you know what the latter sentence means? How should I use Form 1040 'as the statement' when filing 1040NR as a main tax return document? If I cannot claim the child tax credit with NR status, then I will likely choose Resident status and report foreign income as well. Thank you again for your help!!! I hope you still watch this thread.

[rszwarc_betacommunity]

Hi. You won't actually use the 1040 to file your taxes, but use it (and include it in your return) to do the calculations for the IRS for the credit. I would recommend printing out and mailing your return.  Please get back to us if you have further questions. 

Additional information -- Turbotax does not actually offer the 1040NR in our line of products. Here's who can help you.

https://ttlc.intuit.com/questions/2437638-does-turbotax-handle-form-1040nr-for-nonresident-aliens

[hiro]

Dear TurboTaxRinaS,
Thank you for your advice.
> You won't actually use the 1040 to file your taxes, but use it (and include it in your return) to do the calculations for the IRS for the credit.
Could you please give an example situation when I need "to do the calculation for the credit with 1040"? I still don't understand why only 1040NR may not be sufficient. If I use 1040 for the calculation, can I claim the child tax credit even with a dual-resident status? (If so, use of 1040 makes sense.) Thanks!