Federal Tax ID for my parents?

Question

I am from India and working with Maryland State Highway Administration. My parents are old and reside in India. They dont have any source of income, so I have to send them money every month to support them financially. Do I have to get a Tax ID number for both of them to claim them as dependents? Any help will be greatly appreciated. Thank you.

Answer 1

To claim a person other than yourself or an adopted child as a dependent, they "must be a citizen or national of the United States, a resident of the United States, or a resident of Canada or Mexico." "You cannot claim a person as a dependent unless that person is a U.S. citizen, U.S. resident alien, U.S. national, or a resident of Canada or Mexico, for some part of the year. However, there is an exception for certain adopted children, as explained".

Since your parents reside in India and are not children adopted by you, you cannot claim them as dependents unless they are U.S. citizens or nationals.

Answer 2

Even if you were to get Tax ID, no one is going to contact with you for merchant services. Have your parents set up your business and transfer it to you when you are 18.

Answer 3

You should read Publication 501, linked below. If they are not US citizens, US resident aliens, or US nationals, then you won't be able to claim them as dependents.

Answer 4

A tax ID is for businesses. You mean a Social Security Number (SSN). I have no idea about the dependents part - I don't think you can if they live out of country, but speak to a CPA about that.

Answer 5

Even if you are supporting them, you can not claim them as dependents on your US tax return. They would need to be citizens or residents of the US, Mexico, or Canada to do that.