Claiming my children who were living abroad with wife for part of the year as dependents on joint return

[srav]

I (a US citizen) have a biological US citizen child and a stepchild who got his green card along with my spouse when they arrived in the US in the third quarter of 2023. Both children were living abroad with my spouse until their arrival in the US, while I was living in the US through all of 2023.

I and my spouse will file a joint return for 2023. Can I claim both children  on my 2023 return as dependent children and claim the child tax credit?

[Vanessa A]

If you are filing a joint return and they lived with her for the entire year, then yes, you can claim them as dependents on your return for the Child Tax Credit as long as they have social security numbers valid for employment.

If they do not have a SSN valid for employment, you can claim the $500 Non-Refundable Other Dependent Credit if they have an ITIN.  You can apply for an ITIN with the return. You will need to print and mail your return along with the W-7 and any other required documents to

IRS

ITIN Operation

P.O. Box 149342

Austin, TX 78714-9342

Claiming Non Citizen Spouse and Children on Your Taxes

How to obtain an ITIN

[srav]

Thank you for the clarification, yes they did live with her for the entire year, and they do have SSNs valid for employment.

[srav]

So I was informed on asking a tax expert that since my spouse's status was that of a non resident alien while the children were living with her abroad (her status changed from non resident alien to resident alien on entry to the US), she cannot claim the children as dependents for 2023.

[SusanY1 · Accepted solution]

It may be beneficial to file a joint return with your wife which then allows the children to be claimed on the joint return.  Note that there are some things that will not be allowed such as Earned Income Credit (since the children did not live with you in the US) but this may not be of concern.

To file jointly with your spouse, you attach a statement to your paper-filed tax return signed by each of you indicating that you wish to elect to treat her as a resident for tax purposes.  You would need to report her worldwide income, but that income may be eligible for foreign tax credits or for exclusion under the Foreign Earned Income Exclusion.  

You would need to weigh the benefits of filing jointly with the need to report her income as well as yours on the tax return. 

There are other items to consider when making this election as well, including that it is a once in a lifetime election.  You can learn more about it HERE.

If your spouse does not already have a Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN) you will attach the application for an ITIN to the return and send it along with supporting documents to the Form W-7 processing center.  If your wife has a pending application for SSN, it is better to file an extension and wait for the SSN to file the return, however.  

 

[srav]

Susan, the link you provided is for nonresident spouse who is not a US resident at the end of the year, whereas my wife was a US resident at the end of the year (but not at the beginning of the year). She also had 0 income in 2023 as she is a homemaker. So a statement signed by each of us may not be required to file jointly ? (She has an SSN so we do not need the W-7 either ). As such it seems like we can file jointly for 2023 online, the only question is if we can claim the children or not.

[SusanY1]

 Yes, you can claim the children if you are filing a joint tax return.  Indicate that they lived with you all year in TurboTax to ensure that they are treated properly on the tax return. 

 

[srav]

Will do -- Thank you!