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Level 2
February 13, 2023
Question

Recovery Rebate claimed by U.S. citizen child if parents are nonresident aliens?

  • February 13, 2023
  • 4 replies
  • 5 views

All, 

I have a tax question and would like to ask for your input. 

I have a new client, which just turned 18. He is a U.S. citizen and has a SSN, but lives in a different country. 

His parents have no ties to the US other then being on a H-visa when the client was born in the US 18 years ago. They since have returned to their home country, do not have a SSN or a residency permit in the US anymore. They did not file US taxes for the last 15ish years. 

I am wondering if my client would be able to claim the Recovery Rebate Payments. If I start a return for him it asks if he could be claimed as a dependent of another taxpayer. Since both his parents are nonresident aliens, can I assume that he cannot be claimed as a dependent of another taxpayer? And therefore can claim his own RRC 1-3 when filing a tax return for 2020 and 2021? I cannot find any guidance for this scenario. 

Thank you for your input. 

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4 replies

qbteachmt
Level 15
February 13, 2023

"They did not file US taxes for the last 15ish years."

That doesn't mean they didn't need to. And you are trying to file a return for someone who is 15 and 16 in those years? Geez, it never occurred to me to consider that all those US citizen children around the world should have applied for the RRC on their own standing.

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BobKamman
Level 15
February 13, 2023
qbteachmt
Level 15
February 13, 2023

That article isn't quite the same as the question of filing a tax return for a minor, though.

Don't yell at us; we're volunteers
sjrcpa
Level 15
February 13, 2023

Yes the US citizen child is eligible for RRC. They cannot be claimed as a dependent.

The more I know the more I don’t know.
Level 15
February 13, 2023

Why don't you think he can be claimed as a dependent?

sjrcpa
Level 15
February 13, 2023

On a 1040-NR you cannot claim dependents (except in a few limited circumstances involving Canada, Mexico, South Korea and India).

Jensen and I had this RRC discussion off line before and we came to the conclusion it was an unintended consequence.

The more I know the more I don’t know.
qbteachmt
Level 15
February 13, 2023

Also, the three RRC payouts each had different eligibility requirements.

Don't yell at us; we're volunteers