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Yuki Kobayashi

Can I claim my child as a dependent on my tax return if they live in the Philippines?

So I'm wondering about claiming my daughter as a dependent - she lives in the Philippines and I filed my taxes claiming her this year. I keep reading conflicting things online about residency requirements. Some articles say that your child needs to live with you for at least half the year (or the whole year?) to qualify as a dependent on your tax return. Is this actually true? I'm worried I might have done something wrong when I claimed her.

The answer depends on whether your child qualifies as a "qualifying child" or a "qualifying relative" - these are two different categories for dependents with different rules. For a qualifying child, they generally need to live with you for more than half the year. This is called the "residency test." However, there are exceptions to this rule! For children who are studying abroad temporarily, for example. For a qualifying relative, there is no residency test, but there are other requirements: 1) They can't be your qualifying child or anyone else's, 2) Their income must be less than the dependent exemption amount, 3) You must provide more than half of their total support for the year, and 4) They must be related to you in one of the ways listed by the IRS or must live with you all year. There's also a special rule for children of divorced or separated parents that might apply in your situation.

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What if I send money to my ex in another country for our kid? I pay child support every month and it's definitely more than half of what they need. Can I claim my son even though he lives overseas with his mom?

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For your situation with child support, it gets a bit complicated. Paying child support doesn't automatically qualify you to claim your child as a dependent. If your ex has custody, they typically have the right to claim the child. However, if you have a written agreement (like a Form 8332) where the custodial parent releases the claim to you, then you may be able to claim the child. Without such an agreement, and if your child lives with their other parent outside the US for most of the year, you generally cannot claim them as a qualifying child.

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I ran into a similar situation with my son who lives with his mother in Brazil. I was super confused about all the rules until I found this AI tool called taxr.ai (https://taxr.ai) that analyzed my specific situation. I uploaded some documents showing I provide financial support and it actually determined I could claim him as a "qualifying relative" (not qualifying child) since I provide over half his financial support, he doesn't earn enough income on his own, and I have documentation of the money transfers I send monthly. The tool walked me through exactly what I needed to document to support my claim if I ever got audited.

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That sounds helpful but how does the tool determine if you're actually providing more than half the support? Like does it add up all your payments or something? My daughter lives with my ex in Canada and I send money but have no idea what my ex spends on her in total.

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I'm skeptical about tax AI tools... did it actually help with international dependent situations? The IRS rules on this seem really complex and I'm worried about getting audited for claiming my kid who lives with their mom overseas.

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The tool asks you to estimate the total annual cost of supporting your child (housing, food, clothes, education, etc.) and then compares that to what you contribute. You can upload bank statements showing transfers which helps establish a paper trail of your support payments. It gives you a percentage calculation of your contribution. For international situations, it's actually pretty comprehensive. It walks through the special tests that apply when a dependent lives abroad and helps you determine if you qualify under the IRS foreign dependent rules. It specifically addresses the residency test exceptions that might apply and gives guidance on what documentation you need to keep to protect yourself in case of audit.

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I just wanted to follow up about that taxr.ai site someone mentioned. I decided to try it because my situation with my daughter in Spain was giving me anxiety about audits. The analysis it gave was surprisingly detailed - it actually ran through all the qualifying relative tests for my specific situation and showed I was providing 73% of her total support based on the numbers I entered. It flagged that I needed to document the living arrangements and showed what forms I needed. Best part was it gave me a complete audit defense file with all the evidence organized. Just filed my taxes claiming her and feeling way more confident now!

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I had a similar issue trying to claim my nephew who lives with my sister in Mexico. Spent HOURS trying to get through to the IRS to confirm the rules but kept getting disconnected or stuck on hold forever. Eventually used Claimyr (https://claimyr.com) and they got me connected to an actual IRS agent in about 15 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent confirmed that I could claim him as a qualifying relative since I send more than half his financial support, he meets the income requirements, and I keep good records of all my financial support. Saved me so much stress trying to interpret all the different rules online!

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Wait how does this service actually work? Do they have some special line to the IRS? I've literally spent 3+ hours on hold before giving up.

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Yeah right. Nothing gets you through to the IRS faster. I've tried everything and it's always at least an hour wait minimum. If this actually worked everyone would be using it.

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The service basically holds your place in line with the IRS and calls you when an agent is about to pick up. They use some kind of automated system that navigates the IRS phone tree and waits on hold for you. No magic back door or anything - they're just taking the waiting part off your plate. You still talk directly to the same IRS representatives everyone else does, but you don't have to sit there listening to the hold music for hours. I was honestly skeptical too, but after trying to get through myself multiple times and failing, it was worth trying something different.

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I need to eat my words about that Claimyr service. After my skeptical comment, I decided to try it anyway because I was desperate to resolve my situation with claiming my son who lives with his mom in Germany. Shockingly, it actually worked! Got a call back in about 25 minutes and spoke with an IRS agent who cleared up my questions. They explained I could claim my son as a qualifying relative since I provide over half his support, but I needed specific documentation to prove it. The agent even gave me tips on what records to keep in case of audit. Would have taken me days more of trying to call on my own.

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Make sure you understand the "support test" properly. I almost got in trouble claiming my daughter who lives with her mom in Colombia. You have to prove you provide MORE THAN HALF of the TOTAL support - not just that you send a lot of money. For example, if your child's other parent or grandparents are also providing significant support, or if they receive government benefits in their country, all of that counts toward the total support calculation. Keep receipts of EVERYTHING you send - money transfers, direct payments for school, etc. I use an app to track all this now.

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Do gifts count as support? Like if I buy clothes and toys and ship them to my kids overseas, can I include that value?

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Yes, gifts absolutely count as support if they cover basic necessities! Clothing definitely counts. Toys are a bit of a gray area but could count as part of educational or developmental support. The key is to keep detailed records - take photos of what you send, keep receipts showing the value, and document shipping costs too. The IRS considers all contributions toward your child's food, shelter, clothing, education, medical care, transportation, and even recreation as part of support calculation.

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has anyone used the free foreign dependents worksheet the IRS has? i downloaded it and it really helped me figure out if my daughter in mexico qualified. kinda complicated at first but breaks down all the tests u need to pass.

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Where did you find this worksheet? I've been looking all over the IRS website and can't seem to locate anything specifically for foreign dependents. Would really appreciate a link if you have one!

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i found it by googling "irs publication 501 dependents" which has all the rules and tests. the worksheet isnt specifically for foreign dependents but it works for any dependent situation and walks u through each test step by step. sorry i should have been more clear! the main thing is it helps u calculate if ur providing more than half their support which is super important for foreign kids. page 16 has the worksheet i used.

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Just FYI, I claimed my kid living in Japan with my ex and got audited last year. Had to prove I provided more than 50% of his total support. Make sure you have: - Receipts for all money transfers - School tuition receipts if you pay them - A signed statement from the other parent about what they contribute (if possible) - Bills you pay directly (medical, etc) Without good records it's really hard to defend your claim when the IRS comes asking!

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