A J1 scholar claiming a child (J2) as dependent

[mcjchurch]

Hi,

I am a J1 research scholar, and this is the first year that I am filing as a Resident Alien. Last year, we were able to get an SSN for my wife and ITIN for our daughter, both of whom have J2 visa status. My question is, can I claim my daughter as a dependent for tax purposes? She has lived with us and we have supported her for the whole year.

My only reason for hesitation is not knowing whether she qualifies as a "resident", being on a J2 visa despite spending the whole year in the US.

I'd appreciate any information you could give me.

Thanks

[JamesG1 · Accepted solution]

You have a J-1 Visa and are filing a Federal 1040 as a Resident Alien.  Your wife has a Social Security number and your daughter has an ITIN and have both have J-2 Visas.

Please see page 11 of IRS Publication 501.  Towards the top of the page you read this:

“You can't claim a person as a dependent unless that person is a U.S. citizen, U.S. resident alien, U.S. national, or a resident of Canada or Mexico.”

If you meet the requirements listed in either of the two columns on page 11, Tests to be a Qualifying Child, left, and Tests to be a Qualifying Relative, right), you will be able to claim your daughter as a qualifying child or a qualifying relative on a Federal 1040.

However, you will not be able to claim the Child Tax Credit or the Earned Income Tax Credit for a child with an ITIN.

See this IRS publication.

“If a primary taxpayer, spouse, or both have ITINs, they are ineligible to receive the Earned Income Tax Credit (EITC), even if their dependents have valid SSNs. If the taxpayer and spouse (if filing jointly) have valid SSNs, only dependents with valid SSNs – not ITINs – qualify to receive EITC.”

[mcjchurch]

Thank you. It seems like she is a Qualifying Child, and I understand that an ITIN means I can't claim the Child Tax Credit.

On the TurboTax software, when specifying her Citizenship, does this mean I have to select "None of the above" rather than "U.S. citizen or legal resident"? Is there any benefit to being a Qualifying Child if one can't claim the Child Tax Credit?

Apologies for the extra questions, but I'm still really confused by the US tax system.

Thanks again.

[KarenJ2]

She cannot claim the Child tax credit however she may be able to claim the Family Tax Credit.  She would be a US resident alien if you are now a resident.

What is the $500 Credit for Other Dependents (Family Tax Credit)?