# Dependent: Claim or not?



## debbie790 (Dec 28, 2010)

Hi,

I am a US citizen and my husband is Canadian. Our son is also Canadian. He was born in Canada in 2014 and we don't intend to apply for his US green card or citizenship. Since 2011 we have been living overseas and every year my tax filing status is Married filing separate return.

1. Do I declare my son as a dependent child on my 2014 return?

2. If claiming a Non-US child as dependent is a choice, are there any benefit(s) in claiming him. I usually claim FEIE & Housing exclusion as well.

Need help


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## Bevdeforges (Nov 16, 2007)

If you want to claim him as a dependent on your return, you'll probably have to get him a US SSN, which means registering him with the US officials. You can't declare any dependent without an ITIN or SSN and your son probably isn't eligible for an ITIN because he's a defacto US citizen and will have to get a regular SSN.

I say "probably" because his US citizenship isn't a function of your registering with the consulate, but rather is a function of whether or not you are able to transmit your nationality (i.e. have the requisite number of years of residence in the US after your 14th birthday, I think it is these days).

If you do decide to claim him as a dependent on your tax return, it will only benefit you if you wind up owing US taxes (due to passive income or if your FEIE and Housing Exclusion don't cover your earned income). 
Cheers,
Bev


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## debbie790 (Dec 28, 2010)

I was born and lived all my life in US. Since US taxes on world income, neither my husband nor son would like to have US green-card/citizenship.

1. Does my nationality automatically gets transferred over to my son, i.e. regardless of my not applying for his US citizenship, he is still a US citizen due to his mother's nationality?

2. Currently, we prefer him not to have a US citizen. I don't know what the financial situation will be in future. Up to what age does my son have the option of becoming US citizen (since his mother is a US citizen)?

thanks


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## Bevdeforges (Nov 16, 2007)

debbie790 said:


> I was born and lived all my life in US. Since US taxes on world income, neither my husband nor son would like to have US green-card/citizenship.
> 
> 1. Does my nationality automatically gets transferred over to my son, i.e. regardless of my not applying for his US citizenship, he is still a US citizen due to his mother's nationality?


Officially, legally, technically, your son is a US citizen from birth whether or not you register him with the consulate. Now, with a non-US birthplace, it's highly unlikely anyone will have reason to notice this - unless you travel together as a family and some sharp eyed Immigration type notices that one of the parents is a US citizen (usually from your passport). It really will only ever come up when travelling to the US as a family.



> 2. Currently, we prefer him not to have a US citizen. I don't know what the financial situation will be in future. Up to what age does my son have the option of becoming US citizen (since his mother is a US citizen)?
> 
> thanks


It's not an option. He is a US citizen, whether registered or not. However, the issue will only ever come up the first time he "exercises some right of citizenship" - like requesting a passport or a Social Security number, or if he should in future wish to reside in the US for some period of time (say, for school or work). Figure just about any occasion where he would have to produce a birth certificate for some function related to the US. (These days they tend to want a birth certificate that shows the nationality of the parents at the date of birth.)
Cheers,
Bev


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## BBCWatcher (Dec 28, 2012)

Here's how I'd recommend you approach this....

1. Take the Additional Child Tax Credit and any other U.S. tax benefits associated with having a U.S. citizen child. It's your child's money, too -- household money is fungible. If the IRS is going to pay your child for being a child, _take the money_. Spend 100% of it on your child if you wish. Put it in his college fund, for example.

Yes, that means you have to document your child's preexisting U.S. citizenship: Consular Report of Birth Abroad, U.S. Social Security Number, etc.

2. If your child decides that he doesn't want the U.S. citizenship he already possesses, he can decide for himself what he wants to do with it, as an adult -- on his 18th birthday if he wishes.

Or, to net it out, children are not adults and vice versa.

I don't see any point in turning down free money -- I'm assuming there is some, and that's likely -- simply to pretend he doesn't possess what he already does. Where's the upside in that? Well, OK, there's an upside for someone: the U.S. government keeps more of its tax revenues. 

By the way, I assume from your description you've already qualified for U.S. Social Security benefits. It's possible if you die tomorrow -- let's hope not! -- your _documented_ child could receive U.S. benefits until he reaches age 18. That's another really good reason to put him "in the system."


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## debbie790 (Dec 28, 2010)

1. We live overseas, so cannot avail either Canadian child tax credit or US benefits since they are both non-refundable credits (Am I correct?)

2. You did bring an interesting point of US Social Security benefits, especially in the event I die tomorrow (now I'm nervous):

a. Can a non-US spouse/son received deceased benefits?

b. If I decide not to register my son with US officials, and I die tomorrow then:

Will my son still eligible to register himself (after my death) with US officials to acquire US citizenship? If Yes, will he be granted US citizenship? On what grounds can he be denied?


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## Bevdeforges (Nov 16, 2007)

http://www.ssa.gov/pubs/EN-05-10137.pdf for all the details of SS benefits while living abroad. Take a look specifically at page 10 to see about those eligible for survivor benefits. There are residence requirements (either in the US or in a country with a SS treaty with the US). 

However - your son can always claim his US citizenship. He is a citizen from birth and there is little or no way to change that, short of renouncing (though to renounce, he'd probably first have to claim his citizenship). The one complicating factor might be that obtaining a US SSN for the first time as an adult who is considered a citizen from birth can be a long and tricky process - however it can be done.
Cheers,
Bev


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## BBCWatcher (Dec 28, 2012)

The Additional Child Tax Credit is a _refundable_ tax credit. There are some rules in qualifying for that particular tax credit, but it is possible for Americans living overseas (and their U.S. citizen children) to receive that particular free money from the IRS, yes. It's worth up to US$1000 per year all by itself.

Yes, you need a documented U.S. citizen (or U.S. national) child for that one.

Absolutely I'd take the money if you and your child qualify.


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