Are Remitances Tax Deductible in the US?

Question

Hi Folks,

Just wanted to know if I can use any money I sent overseas to family can be used as part of my Income tax deductibles?

Thanks.

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Raffy

Answer 1

DEFINITELY NOT.

I send money to my family in Asia on a regular basis and I could not use that as an income tax deductible.

As long as the family member does not have social security number, you can't claim them as part of your deductions (and if they are citizens of another country, most likely they don't have US social security number).

Many immigrants support the families they left behind in their original country. Imagine the uproar if immigrants can claim as tax deductions the support they are sending to their families in El Salvador or Philippines or India. I would love that to happen, but I don't think it will.

I suggest you call the IRS and ask them directly. I talked to them about this before, and you can only claim remittances if the person you are sending money to will pass the citizenship test (e.g. they are US citizens living abroad, case of an adopted child, etc.). They also need a valid taxpayer ID http://www.irs.gov/pub/irs-pdf/fw7.pdf . Especially if they've never lived with you in the US, you cannot claim them as deductions.

Answer 2

Probably not and definitely not in the total dollar amount that you sent. Even if you supported all of your family here in the states the most you might be able to do is claim them as dependents and get the standard deduction for number of dependents. You would not get to deduct the exact dollar amount that you paid for them. I don't think that you can claim someone as a dependent who is not living in the US.

Answer 3

if members of your family are residents or citizens of the US than you can take exepmtions when you are filing the return. Otherwise, they can thank you for being a good person because you help them. Sorry no deductibles in this case

Answer 4

If you provide over one half of the support for any family member, that person can be living anywhere. Also, if you have child care expenses in another country that is deductible. Can you prove it? You are filing tax return in the U.S.?

Answer 5

If you do provide more than 50% of the support for any one of them you can claim that person. If so since they do not have a SS number they need to get an ITIN number from the IRS using Form W-7. This number goes on your 1040.

Answer 6

No, you can't deduct that. It's considered a personal expense.

Answer 7

Greetings!

Only if it substantiated 50 or more per cent of their upkeep.

Good Luck

Answer 8

i would ask hr and block