Child support and other baby

[LeonelR]

I just started paying child support this year and is coming out of my paycheck. I also had a newborn with my current partner and also my dad just got his residency (green card). Can I claim my two children (which is my child support), the newborn, and my dad (73 years old) as dependents for this year? Also I moved to Mexico this year and work in the US. So pretty much I do not have a residence address in the US.

[EricE_CPA]

Hi @LeonelR 

Good questions.

You moved to Mexico and work in the U.S.  As an U.S. Expat you are required to file Form 1040.

Regarding your dependent children:

1. To be your dependent, the qualifying individual must be a U.S. citizen, U.S. national, U.S. resident alien, or a resident of Canada or Mexico for some part of the calendar year in which your tax year begins. Children usually are citizens or residents of the same country as their parents. If you were a U.S. citizen when your child was born, your child generally is a U.S. citizen. This is true even if the child's other parent is a nonresident alien, the child was born in a foreign country, and the child lives abroad with the other parent.
2. Child must live with you over half  of the year; you must provide more than half the support for the child

Regarding your father: (must meet the following tests)

• He must have gross income of less than $4,300 in 2021
• You must generally provide more than half of a person's total support during the calendar year

[TaxandtheCurious]

Hello LeonelR,

Congratulations on have a new baby! Thank you for your question. 

As the payer of child support, you may be eligible to claim your other 2 children as dependents. However, paying child support does not entitle you to claim them as dependents.   Typically, you claim them as dependents if the children lived with you most of the year and you are considered the custodial parent for Federal Tax purposes. If you are the non-custodial parent you may also be eligible, if you meet the criteria (see below).  Due the residency test, a child of divorced or separated parents is the qualifying child
of the custodial parent. However, the child will be treated as the qualifying child (for the purposes of
claiming a dependency exemption and the child tax credit, but not for the earned income credit) of the
noncustodial parent if all four of the following statements are true:
1. The parents:
a. are divorced or legally separated under a decree of divorce or separate maintenance,
b. are separated under a written separation agreement, or
c. lived apart at all times during the last 6 months of the year, whether or not they are or were married.
2. The child received over half of his or her support for the year from the parents.
3. The child is in the custody of one or both parents for more than half of the year.
4. The noncustodial parent attaches a Form 8332, or similar statement containing the same information
required by the form, to his or her return. The form must be signed by the custodial parent. (See
special rules in Publication 17 for a pre-1985 or post-1984 and pre-2009 divorce decree or separation
agreement.)
See Publication 17 for additional rules for claiming an exemption for a dependent.

In terms of claiming your father as a dependent, there are special tax rules for parents. As with most tax related items, you will need to meet some requirements. Here are the main areas to consider. 

• Is supported (more than 50%) by you
• Residency and Relationship
• Earned less than $4,300 of gross (total) income
• Is not a qualifying dependent of anyone else

You can also refer to this link for additional details. https://blog.turbotax.intuit.com/tax-deductions-and-credits-2/family/can-you-claim-a-parent-as-a-dep... 

As an American Expat, you are still eligible for Child Tax Credits.

Additionally, although you live in Mexico, you are still required to report all worldwide income in the US. 

Since you are a U.S. citizen living in Mexico, make sure to fill out and file the usual IRS Form 1040, U.S. Individual Income Tax Return, just as if you were still in the United States.

[melj1]

Hi Leonel,

You have asked several questions. I will try to respond to them as best I can.

Child support does not automatically make you the individual that can claim the child as a dependent. Does you divorce agreement stipulate you as the one claiming the child. If the agreement is silent or if there is no agreement, the parent providing more than 50% the support is the parent entitled to take the dependent. 

The newborn is would depend on you providing the support of the child.

Your dad the rules are somewhat different. In addition to providing more that half support of your dad, he has an income limit of $4,400. 

You do not need a US residence to be required to file a tax return. If you are a US citizen or have a green card, you need to file a form 1040 on your worldwide income. You may qualify for foreign income exclusion or foreign tax credit. I am attaching an article to help you on that. There is also a credit for taxes paid on foreign income. I will attach an article on that.

Here is an article to assist you on the who is a dependent. 

https://turbotax.intuit.com/tax-tips/family/rules-for-claiming-a-dependent-on-your-tax-return/L8LODb...

Here is an article to assist on foreign income exclusion:

https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion#:~:text=Howe...

Here is an article on foreign taxes paid:

https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion#:~:text=Howe...