Child tax credit for child who move to USA on 7th July 2020

[sumeet_r]

I am on L1 visa and we (me, my wife and a 3 year old son) moved to USA on 7th July 2023. Also, I (alone) was in USA in 2022 for couple of months.

Based on number of days I was in USA in 2023 & 2022, i pass the substantial presence test and would be a resident alien.

My wife and kid, both on L2 have been in USA with me only since 7th July 2023, so total of 178 days. Since start of 2023 till July 7th, we all stayed together abroad.

When I fill for taxes in 2024 (Married Jointly), can I claim my child as dependent and get child tax credit of $2000?

[Anonymous_]

@pk

[MarilynG1]

You can claim your child as a dependent if the child lived with you more than half the nights of the year.  The child does not need to pass the substantial presence test as long as the parents passed the substantial presence test.

However,  the child will only qualify for a $500  'other dependent'  tax credit. The child does not qualify for the $2000 child tax credit unless it has a Social Security number. 

Since your spouse does not meet the 'substantial presence test', here's how you can file your taxes with a Non-Resident Alien Spouse.

Here's more Tax Tips for Resident and Non-Resident Aliens. 

[pk]

@sumeet_r , Namaste ji.   Please excuse my late response.  While I generally agree with response by @MarilynG1 , there a few things I am uncertain about.

(a) should I assume that you (L-1 ), Your wife and child  ( all L-2 ) are from India ( Indian citizenship ) ?

(b) By "living abroad" did you mean you were in the USA together ( abroad from Indian homebase ) or did you mean you were abroad from US perspective?

(c) Are you saying that while you were  in the USA  since 2022 ( exact date , please ) ,  you got married  back in India during 2022 and  your spouse and Child  moved to US in  2023  ( July 7th 2023 ) on L-2  ( and based on your L-1 visa ) ?

Please answer my questions and I will circle back once I hear from you .

Namaste  ji

pk

[sumeet_r]

@pk  Here are my responses,

a) Yes, we all are Indian citizens. 

b) Living abroad was from US perspective. We were in India from 1st Jan to 6th July 2023.

c) I got married (In India) in 2016 and my son was born (In India) in 2020.

I travelled alone to USA on L1 visa in 2022 for couple of months (67 days, May - Aug) and went back to India. 

On July 7th 2024 I came back to USA, this time along with my wife and kid. We are in USA since then.

[pk]

@sumeet_r , as I go through your post what I get is:

(a)  you entered USA in 2022  with L-1 visa , worked  ( May through Aug ) and left the USA ---- thus you did not satisfy the SPT and would have filed a form 1040-NR for the tax year 2022 -- taxed only on US sourced / connected income.

(b) your stay in India  for the rest of 2022 is no-presence in the USA and so does not change your status as Non-Resident Alien

(c) When you reentered the USA on  July 7th 2023 on L-1 and family on dependent visa L-2, you started a new  SPT test regime. (183 days  present counting all the days present in the current year + 1/3 the days present  in 2022  plus 1/6th days present in 2021 ). Assuming that you had no days in 2021, 67 in 2022 and  183 in 2023, you would file as a Resident for tax purposes.  

However your residency start date is the first full day present in the current year of 2023 -- this means that you cannot take standard deduction,  but you would satisfy the child living with you for six months and in the USA.

Does this help ?

If  you need more help, please feel welcome to add to this  thread

pk