1st year choice, K-2 status and child credit

[kwn]

Hi friends,

 

Couple of questions for those who may be in the know.

 

1. If K-1 beneficiary makes 1st year choice and opts to be treated as resident for the tax year, does her K-2 child also become a resident alien for tax purposes? I am thinking specifically of the resident alien condition that has to be met in order to claim the qualifying child credit.

 

2. Can USC then claim the child tax credit for the K-2 stepchild (assuming all other conditions for child credit are met)?

 

Thanks

[Randy W]

"Resident alien for tax purposes" affects only the income (and how it's taxed), not the actual period of residency.

 

Unless the K-2 child had income of his/her own, it would not make any sense to do so.

 

The child must have lived with you for at least 6 months of the year, regardless of how you treat his/her income.

[kwn]

"Resident alien for tax purposes" affects only the income (and how it's taxed), not the actual period of residency.

 

Unless the K-2 child had income of his/her own, it would not make any sense to do so.

 

The child must have lived with you for at least 6 months of the year, regardless of how you treat his/her income.

 

Randy,

 

 

I guess I am trying to find out if I can claim my stepchild for the qualifying child credit.

 

He meets all the conditions. I am just not clear about the resident alien condition for his first year of living in this country. If he lives here for more than half a year, is he a resident alien or dual status?

 

Thanks.

[Randy W]

Oh.

 

 

The question (in the 1040 instructions) asks, "Was the child a resident alien?"

 

 

That seems to me to refer to the last day of the year, so I would say "yes". But you may want to read further, unless someone has a good answer.

 

There is a publication on how to treat your first year, but I think that applies to income.

 

Sorry I don't have more to offer here, but I'll guess that you can do that, but not based on his mother's filing status.

[kwn]

Oh.

 

 

The question (in the 1040 instructions) asks, "Was the child a resident alien?"

 

 

That seems to me to refer to the last day of the year, so I would say "yes". But you may want to read further, unless someone has a good answer.

 

There is a publication on how to treat your first year, but I think that applies to income.

 

Sorry I don't have more to offer here, but I'll guess that you can do that, but not based on his mother's filing status.

 

Thanks, Randy

 

kwn

[Trigg]

"Resident alien for tax purposes" affects only the income (and how it's taxed), not the actual period of residency.

 

Unless the K-2 child had income of his/her own, it would not make any sense to do so.

 

The child must have lived with you for at least 6 months of the year, regardless of how you treat his/her income.

 

Randy,

 

 

I guess I am trying to find out if I can claim my stepchild for the qualifying child credit.

 

He meets all the conditions. I am just not clear about the resident alien condition for his first year of living in this country. If he lives here for more than half a year, is he a resident alien or dual status?

 

Thanks.

If the child has been in the US for 183 days or more you can claim him/her as a dependent and for the child tax credit and earned income or any other tax matter you woulkd claim a natural child born in the usa.

 

Been there done that!

[LeeFisher3]

"Resident alien for tax purposes" affects only the income (and how it's taxed), not the actual period of residency.

 

Unless the K-2 child had income of his/her own, it would not make any sense to do so.

 

The child must have lived with you for at least 6 months of the year, regardless of how you treat his/her income.

 

Randy,

 

 

I guess I am trying to find out if I can claim my stepchild for the qualifying child credit.

 

He meets all the conditions. I am just not clear about the resident alien condition for his first year of living in this country. If he lives here for more than half a year, is he a resident alien or dual status?

 

Thanks.

If the child has been in the US for 183 days or more you can claim him/her as a dependent and for the child tax credit and earned income or any other tax matter you woulkd claim a natural child born in the usa.

 

Been there done that!

That's a fact and once we explained the $1000 benefit to my wife's family we were told to return to the US from GZ immediately after receiving son's visa and arrived in the US on July 1 with 2 days to spare.

[kwn]

"Resident alien for tax purposes" affects only the income (and how it's taxed), not the actual period of residency.

 

Unless the K-2 child had income of his/her own, it would not make any sense to do so.

 

The child must have lived with you for at least 6 months of the year, regardless of how you treat his/her income.

 

Randy,

 

 

I guess I am trying to find out if I can claim my stepchild for the qualifying child credit.

 

He meets all the conditions. I am just not clear about the resident alien condition for his first year of living in this country. If he lives here for more than half a year, is he a resident alien or dual status?

 

Thanks.

If the child has been in the US for 183 days or more you can claim him/her as a dependent and for the child tax credit and earned income or any other tax matter you woulkd claim a natural child born in the usa.

 

Been there done that!

That's a fact and once we explained the $1000 benefit to my wife's family we were told to return to the US from GZ immediately after receiving son's visa and arrived in the US on July 1 with 2 days to spare.

 

I decided to call IRS to find out and I was told "Was child a resident alien?" is meant to be for the whole tax year. Now, if the K-2 arrives in the US, according to Pub 519, he or shewill be dual status in the first year of residency. Is my interpretation correct?

[Randy W]

 

I decided to call IRS to find out and I was told "Was child a resident alien?" is meant to be for the whole tax year. Now, if the K-2 arrives in the US, according to Pub 519, he or shewill be dual status in the first year of residency. Is my interpretation correct?

 

Check Fig. 1A on page 5 of Publication 519. His tax year is dual status, but he IS a resident alien for tax purposes, since he was here for 183 days of the tax year.