IRS Allows Tax Deduction for Non-Citizen ‘Dependents’ Living in Mexico

Everyone who has filed a tax return has noticed the section devoted to claiming
“dependents,” each one of which reduces the taxpayer’s taxable income by around
$4,000.

Pets do not count as dependents.  Normally, only US citizens
and US residents can be claimed as dependents, but Internal Revenue Code section
152(b)(3)(A) provides that a dependent can be a resident of Canada or Mexico,
without having to be a citizen or resident of the United
States.

Technically, the rule applies to residents of any country
“contiguous” to the United States.
In contrast, foreigners who are residents
of other countries cannot be claimed as dependents for tax purposes, no matter
how dependent they are on the taxpayer for real life purposes.

Read more here.

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