Can You Claim a Non-Resident Alien as a Dependent?

U.S. taxpayers providing financial support to relatives in other countries may be able to claim them as dependents. The Internal Revenue Service (IRS) has specific regulations that permit this, but the rules are stringent. For tax purposes, a non-resident alien is an individual who is not a U.S. citizen and does not meet either the “green card test” or the “substantial presence test” for residency.

Eligibility Requirements for the Dependent

For a non-resident alien to be claimed as a dependent, they must meet a series of tests to be considered a “Qualifying Relative.” The individual must be a resident of the United States, Canada, or Mexico for at least some part of the tax year.

The person cannot be the taxpayer’s qualifying child or the qualifying child of any other U.S. taxpayer, which prevents multiple taxpayers from claiming the same individual. The relationship test must also be met, meaning the individual must be related to the taxpayer in specific ways, such as a parent, grandparent, child, sibling, or in-law.

Two financial tests also apply. The gross income test requires the dependent’s income to be below an inflation-adjusted amount ($5,050 for 2024), which includes all worldwide earnings not exempt from U.S. tax. The taxpayer must also provide more than half of the individual’s total support for the year and be prepared to document these contributions. Support includes expenses such as:

• Food
• Lodging
• Clothing
• Education
• Medical care

Taxpayer Identification Number Requirement

A critical step in claiming any dependent is ensuring they have a valid taxpayer identification number. Since a non-resident alien is not eligible for a Social Security Number (SSN), the taxpayer must obtain an Individual Taxpayer Identification Number (ITIN) on their behalf. An ITIN is a nine-digit tax processing number issued by the IRS for individuals who are required to have a U.S. taxpayer identification number but do not have and are not eligible to obtain an SSN.

To apply for an ITIN, the taxpayer must complete Form W-7, Application for IRS Individual Taxpayer Identification Number. The application requires original or certified copies of documents proving the dependent’s foreign status and identity. A foreign passport is the most common document, but others like a national identity card, driver’s license, or birth certificate may be used. Certified copies must come from the issuing agency or an IRS-authorized Certifying Acceptance Agent. Failure to provide proper documentation will result in the rejection of the ITIN application.

Available Tax Benefits

Successfully claiming a non-resident alien as a dependent unlocks the Credit for Other Dependents (ODC). This is a $500 non-refundable credit that directly reduces the taxpayer’s tax liability.

Claiming a qualifying relative who lives in Canada or Mexico can also enable a taxpayer to use the Head of Household filing status. This status offers a higher standard deduction and more favorable tax brackets compared to filing as Single. To qualify, the taxpayer must be unmarried, pay for more than half the cost of keeping up a home, and have a qualifying relative. A parent living abroad whom the taxpayer supports can fulfill this requirement, even if the parent does not live with the taxpayer.

Certain tax benefits are not available for a non-resident alien dependent. These include the Child Tax Credit (CTC) and the American Opportunity Tax Credit (AOTC) for education expenses.

How to Claim the Dependent on Your Tax Return

Once eligibility is confirmed and the ITIN application is prepared, the dependent must be claimed on the annual tax return. The dependent’s information, including their full name and relationship, must be entered in the “Dependents” section of Form 1040. When filing a Form W-7 with a tax return, the taxpayer should leave the space for the dependent’s identification number blank on the tax return.

On Form 1040, the taxpayer must check the box next to the dependent’s name to indicate they qualify for the Credit for Other Dependents. Failing to check this box will result in the credit not being calculated, even if the dependent’s information is listed correctly.

The required submission method is paper filing. The completed Form W-7 and the required original or certified supporting documents must be attached to the front of the paper Form 1040. The entire package must be mailed to the specific IRS service center that processes ITIN applications, as listed in the Form W-7 instructions, to ensure both are processed together.