Claiming An International Student As Dependent: What You Need To Know

Claiming a college student as a dependent can have significant financial benefits, but there are a number of factors to consider. The Internal Revenue Service (IRS) has outlined specific rules for claiming a dependent, including age, relationship, residency, support, and joint return. For instance, the child must be under the age of 19 (or under 24 if a full-time student), and cannot provide more than half of their own financial support. Additionally, the dependent must be a U.S. citizen, national, or resident, or a resident of Canada or Mexico. In the case of an international student on a student visa, they are typically considered a nonresident alien and cannot be claimed as a dependent. However, it is important to note that each situation is unique, and consulting a tax professional is recommended to explore all options.

Can I claim an international student as a dependent?

International students on a student visa are considered non-resident aliens and don't qualify for the credit for other dependents

International students on a student visa are typically considered non-resident aliens for the first five calendar years of their stay in a country. This classification has specific implications for tax purposes, including the inability to claim the credit for other dependents.

The ability to claim someone as a dependent is a valuable tool for reducing taxable income. A dependent is defined as a qualifying child or a qualifying relative, with certain criteria that must be met. These criteria include age, relationship, residency, support, and the filing of a joint tax return. For a qualifying child, they must be under the age of 19 or under 24 if they are a full-time student. Additionally, the dependent cannot provide more than half of their own annual financial support and must not be claimed as a dependent on another tax return.

For international students on a student visa, their status as non-resident aliens means that they do not fulfil the residency requirement to be claimed as a dependent. This restriction applies even if the student has a Social Security Number (SSN) and meets the income threshold for dependency. It is important to note that this rule does not apply to citizens of South Korea, who may be able to claim their child as a dependent under the income tax treaty between the United States and South Korea.

While international students on a student visa may not qualify for the credit for other dependents, there are still opportunities for tax benefits. For example, education credits may be available based on their expenses. Additionally, international students can explore other tax credits or deductions that are applicable to their specific situation to optimise their tax position.

A qualifying child must meet age, relationship, residency, support, and joint return tests

To be considered a qualifying child, certain tests must be met. These tests are in place to determine whether an individual can be claimed as a dependent on a tax return. The tests are as follows:

Age Test

According to the IRS, the child must be under the age of 19 at the end of the calendar year if they are not a student. If the child is a student, they must be under the age of 24 and a full-time student for at least five months of the year. The age requirement is waived if the child is totally and permanently disabled.

Relationship Test

The child must be younger than the taxpayer (or the spouse, if filing jointly).

Residency Test

The child must live with the taxpayer for more than half of the year. Temporary absences, such as when the child is away at school, are permitted.

Support Test

The child must not provide more than half of their own financial support. This includes taxable income and nontaxable sources such as scholarships. College student loans count as support by the person responsible for the loan repayment.

Joint Return Test

The dependent cannot file a joint tax return with a spouse (except in certain cases).

It is important to note that the above tests apply specifically to qualifying a child as a dependent. There are separate tests for qualifying relatives, which may have different requirements. Additionally, there are specific rules for nonresident aliens, such as students on a visa, who are generally considered nonresident aliens for the first five calendar years and may have different requirements for claiming dependents.

A dependent cannot provide more than half of their own annual support

When it comes to filing taxes, a dependent is someone "other than the taxpayer or spouse" who qualifies to be claimed by someone else on a tax return. This means that the dependent relies on another person for financial support. To qualify as a dependent, an individual cannot provide more than half of their own annual support.

In the context of claiming dependents on tax returns, this rule ensures that the person being claimed as a dependent meets the criteria of relying on the taxpayer for financial support. If a dependent provides more than half of their own financial support, it indicates that they are primarily financially independent, which contradicts the definition and requirements of a dependent.

This rule applies to various types of dependents, including children, relatives, and domestic partners. For example, when claiming a child as a dependent, the child may have a job, but their income should not exceed a certain threshold, and they should not be providing more than half of their own support. Similarly, when claiming a parent or relative as a dependent, you must provide more than half of their total support for the year.

It is important to note that the rules for claiming dependents can vary based on specific circumstances, such as the dependent's relationship to the taxpayer, age, residency status, and income. Additionally, there may be exceptions or special considerations for certain cases, such as divorce or custody agreements. It is always advisable to refer to the specific guidelines provided by the relevant tax authorities, such as the Internal Revenue Service (IRS) in the United States, to ensure accurate compliance with the applicable laws and regulations.

A dependent cannot be claimed as a dependent on someone else's tax return

In the United States, there are specific criteria that must be met to claim someone as a dependent on a tax return. A dependent must be either a qualifying child or a qualifying relative.

To be considered a qualifying child, the individual must meet the following requirements: be under the age of 19 (or under 24 if a full-time student), live with the taxpayer for more than half of the year, and not provide more than half of their own financial support. Additionally, the dependent must be a US citizen, US national, US resident, or a resident of Canada or Mexico.

For international students, the rules vary. If the student is on a student visa, they are generally considered a non-resident alien for the first five calendar years, which means they cannot be claimed as a dependent. However, there are exceptions, such as the tax treaty between the United States and South Korea, which allows South Korean non-resident aliens to claim their children as dependents if they meet certain conditions.

It is important to note that a qualifying dependent cannot be claimed as a dependent on someone else's tax return. This restriction applies to both types of dependents, whether they are qualifying children or qualifying relatives. Therefore, if an individual is already claiming someone else as their dependent, they cannot be claimed as a dependent by another taxpayer, even if they meet the other criteria.

Furthermore, the dependent must not file a joint tax return with a spouse, except in certain cases. The dependent must also not claim another person as a dependent on their own tax form. These requirements often apply to children of divorced parents.

A dependent child can be any age if they are permanently and totally disabled

In general, to be considered a dependent, a child must meet five tests: age, relationship, residency, support, and joint return. However, a dependent child can be any age if they are permanently and totally disabled. In this case, the child must have lived with you for more than half of the tax year, and there are exceptions for temporary absences, such as when the child is away at school. Additionally, the child cannot provide more than half of their own support. This means that college student loans that the parent is responsible for repaying count as support, while nontaxable scholarships do not.

According to the IRS, a dependent is someone "other than the taxpayer or spouse" who qualifies to be claimed by someone else on a tax return. Claiming dependents is an effective way to reduce your taxable income. The Child Tax Credit can be up to $2,000, while the Credit for Other Dependents is worth up to $500.

It is important to note that there are specific requirements and restrictions for claiming dependents. For example, a qualifying dependent cannot file a joint tax return with a spouse (except in certain cases) and cannot be claimed as a dependent on someone else's tax return. Additionally, if your dependent is a student, they must be a full-time student for at least five months of the year and be under the age of 24.

In the context of international students, the situation becomes more complex. If an international student is on a student visa, they are generally considered a nonresident alien for the first five calendar years, which means that you cannot claim them as a dependent. However, there may be exceptions, such as in the case of a student from South Korea, who may be able to claim their child as a qualifying dependent under the income tax treaty between the United States and South Korea.

Frequently asked questions