You may be able to file for a larger refund if you are aware of the various tax credits provided by the Federal Revenue Service (IRS).
The Credit for Other Dependents, which includes those who reside overseas, stands out among the many tax benefits that taxpayers are eligible to receive.
IRS offers $500 dollars to all those taxpayers
Via this credit, the IRS offers $500 to all taxpayers who can prove they have provided at least 50% of the family’s financial assistance or upkeep.
The IRS may be able to reimburse you $500 if you reside in the United States and transfer money on a monthly basis to support relatives in Mexico or Canada.
You must be a tax filer with US citizenship or legal permanent residence in the US, i.e., possess a Green Card, in order to qualify for the $500 credit.
Also, you need to confirm that the funds you provide cover at least 50% of your relatives’ upkeep costs. It doesn’t matter if these family members are US citizens or long-term residents.
If you do match the aforementioned standards, you should be aware that US citizens and residents of Mexico, Canada, or the United States are subject to the same restrictions for determining who qualifies as a dependent. An IRS definition of a dependent is:
- Children of any age, even those who are older than 18
- Parents or other eligible relatives who are dependent on the taxpayer
- Dependents residing in the same household as the taxpayer but not related to the taxpayer
When a taxpayer’s income reaches $200,000 (or $400,000 for married couples filing jointly), the credit starts to steadily decrease.
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Contact IRS if you having confusion
Based on some anecdotal information, it’s likely that you could be able to get through on a phone call or get some help given the reduced confusion this tax season and the IRS’s increased workforce.
Call the IRS first at 800-829-1040. This tax season, the IRS is responding to calls to its 800 line on average in 5 minutes as opposed to last year, when the average response time was 26 minutes, according to Luis Garcia, a Detroit-based IRS spokesperson.
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