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dimag kharab
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 Tax Credit for supporting family overseas
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Posted on 03-15-11 9:01 PM     Reply [Subscribe]
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 So, once a while i send money to my family back in Nepal. I do it through muncha, so i have a good access to the transaction amount, date and receipts online. What are the possibility/ ways of claiming parent support while filing tax here? I know they dont live together with me here but are there any perks? how about as a donation? 

Not trying to be an a$$ole to claim those as deduction, but  hey! most of us send money home and if  a small chunk of deduction would get some of my lost money back, why not do it? I know all my tax money goes to those freaking drug addicts and nigga who live off our tax in the form of  Food Stamps and Disability anyways.

Last edited: 15-Mar-11 09:03 PM

 
Posted on 03-15-11 9:27 PM     [Snapshot: 24]     Reply [Subscribe]
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No and No. If you can claim them as a dependent then you might be able to deduct that but to claim as a dependent they have to be of certain age and they have to live with you for the more than half of the year. So the contributions you made is a gift and you cannot deduct gift.
Also you cannot claim them as donation, because in order to qualify for deduction, you need to donate the money to charitable organization registered under the IRS as a 501c(3).


 
Posted on 03-16-11 7:30 AM     [Snapshot: 116]     Reply [Subscribe]
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Dimag Kharab: You can claim your parents but there are rules and must be met. I think you already read that. You can not claim them as Pichas suggested.

 
Posted on 03-16-11 7:40 AM     [Snapshot: 120]     Reply [Subscribe]
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Thanks.  I had not thought of this while doing taxes the other day.  Doing it using TurboTax. 

So if the parents, who were with visitor's visa, stayed in the US for 6 months - give or take couple of days - can they be claimed as dependents? What can be deducted?  Airfare?  Money given to them?  

If anybody here is a tax accountant, please help clarify.

 
Posted on 03-16-11 7:49 AM     [Snapshot: 130]     Reply [Subscribe]
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Posted on 03-16-11 7:58 AM     [Snapshot: 139]     Reply [Subscribe]
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 Thanks HelpYouHelpMe.  I guess the 1st point in that article settles it.  The parents need to be US citizens.  
 
Posted on 03-16-11 8:04 AM     [Snapshot: 139]     Reply [Subscribe]
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I am not a tax accountant but I think you could file a joint tax return if you are married and you have obtained a tax ID for your wife. I think you have to ask your wife or parents to go to the US embassy at Kathmandu and stamp their Passport. They have to take I think W7 form filled with marrige certificate with them to stamp their passport saying that they are related (wife/son/daughter if they are under 21 years/parents) to you. I think then they have to send copy of the passport or paasport and you can get tax ID for them. Then you might be able to file jointly. If they are here or were here then I think you don't need to go to the embassy and get passport stamped. I hope this wil help you for your tax deduction question. If there are any tax accountants they can explain more. But I am sure you can do joint filling.
Last edited: 16-Mar-11 08:07 AM
Last edited: 16-Mar-11 08:21 AM

 
Posted on 03-16-11 9:19 AM     [Snapshot: 166]     Reply [Subscribe]
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There is no way you can get deduction for your family.
They don't meet the residency, age requirements. First they have to be a US resident which they are not, then the ther question of how many days they lived with you don't even matter.
You can use turbotax and use of the link (undefined; whch is easy) and they might even allow you to do get a deduction.
It might reduce your taxable income.
But look at it this way, if the IRS finds you find out you filed a false claim, you might not be able to file electronically from next year. You have to go back to paper filing,include all your paperwork and someone in IRS in person will verify all the information are correct.
so I don't think that would be worth the risk.
Every year IRS will publish/update it's publication 17 to fecilitate taxpayer with tax filing. You can go to IRS website and download that publication and read it, it's in plain english.
But as invisible said, don't do any of those.
 
Posted on 03-16-11 9:44 AM     [Snapshot: 177]     Reply [Subscribe]
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I have known some people here who are filing jointly of their and their wife who are still in the Nepal.
Last edited: 16-Mar-11 09:45 AM

 
Posted on 03-16-11 2:08 PM     [Snapshot: 247]     Reply [Subscribe]
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Just telling you my  case not sure about the laws regarding immigration and taxes they are so complicated and people lawyers
and the tax filers take benefits from differnet way
but I am claiming my mom as dependent who has ITIN no
 
Posted on 03-16-11 4:33 PM     [Snapshot: 288]     Reply [Subscribe]
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Is your mom 65 and blind ? Anyone can have a tax identification number ? Think about long term consequences before committing fraud
 
Posted on 03-16-11 9:11 PM     [Snapshot: 354]     Reply [Subscribe]
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Just found it somewhere " If you send more than $13,000 per person and you are a US person (citizen or resident alien), you would have to file a form 709 for gift tax purposes." Why would one even have to file if there is no gift deductions?

How about foreign investment with a total loss (like a land being bought and was flooded away?). I just think IRS is totally fishy when it comes to foreign transactions.

 
Posted on 03-16-11 9:43 PM     [Snapshot: 375]     Reply [Subscribe]
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Go for it, if you wish and your parents has ITIN or social security number.

 
Posted on 03-16-11 11:32 PM     [Snapshot: 400]     Reply [Subscribe]
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yeah if you give out gift, you will have to pay the IRS taxes. But if the gift is less that 13k you don't need to pay taxes. So if you helped your family and sent money all you can say that was gift, but you won't get deduction or any tax credit for that .
The filing requirement for gift is important because every person can give so much of gift in his/her lifetime.
Also you cannot deduct any foreign investment losses. But your foreign income on which taxes are paid in another country, such income are not taxable.

 


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