IRS deductions for Canadian/Mexican dependents

[snopes]

Comment: FIRST TIME I'VE SEEN THIS ONE:

WERE DID YOU FIND THOSE RELATIVES?

Well here's a jaw dropping kick in the pants for you. I just got off the
phone with the IRS and in fact, anyone who is a relative in Mexico (or
Canada) can be claimed as a dependent of tax deduction purposes, they
don't have to live with you at any time and you don't have to prove how
much you support them with. In fact, they have made it even easier for
these people, apparently all you have to do is fill in a W-7 and attach it
to your tax return and bingo you have all the dependents you want as well
as a tax deduction of $3500 for each one.

Can you imagine how little any of them will pay in taxes if we legalize
them all??? Just put it together and it becomes clear that we are
absolutely subsidizing Mexico. I've attached a copy of W-7. So all you
have to do is provide a passport copy or certified birth certificate and
you can claim as many people as you want as dependents. So:

- they don't have to step foot on American soil at any time.
- you don't have to prove you gave them a dime.
- you don't even have to prove they are actually a relative, it's all
based on honesty

Just sickening! Pass it along, I hope others are just as incensed as I
am.

--------------

Here is something that I was just made aware of that I think merits
further investigation.

I was doing my taxes when I noticed, for the first time, that people here
may now claim dependents who live in Mexico or Canada on their US tax
return in order to get more money back. How many people do you know of
from Canada who leave their family behind and would this claim them as
dependents while working here? Not many I'm sure, but I bet they included
Canada to filter the real reason - Mexico. SSP anyone?

But it all gelled with me when one of my employees asked yesterday if we
had done our taxes yet and were we getting money back or paying. I said I
had to pay more and a few said they would be getting back $100 or so. Then
my employee grinned like the cat that swallowed the proverbial canary and
he stated that he was getting $8,000 back. I know his salary as well can
guess his wife's - he just became a citizen having worked up here legally
for 14 years, his wife is legally working at the Hotel Del but not yet a
citizen. No harm no foul there, they both work hard and he is an excellent
screenprinter. BUT, here is what he told me when I picked my jaw up off
the floor and asked him how the heck he was getting $8k back.

He said that he is claiming his parents, who live in Ensenada and are
Mexican citizens, and his wife's mother who lives in Tacate (Mexican
citizen) as dependents. He also said that he is going to redo his taxes
for the last 3 years and claim them as dependents and get more money back
from all of us US taxpayers.

Now just how the F does that work!!!? They don't have SS or TIN as is
required for Americans to claim a dependent, they don't have any proof of
how much money was sent to support these people, they don't even have a
way to prove the people are dead or alive or ever exist (hey Paco, how
many kids would you like to claim you fathered in Mexico!). I have to put
my daughters SS on my tax form to claim her, and if I giver her deduction
to my ex I have to sign a tax form that gives him the right to do so. If I
claim that I support my mom, then she can't use herself as a deduction and
the IRS can check on all of this.

I smell a great big ugly heist of American tax money again to go to Mexico
I am outraged as a middle class big hefty tax paying American that we are
now making it possible for Mexico/Mexicans to get even more money out of
us. Think about it, Paco up here even legally working can claim all 10 of
his fabricated children and a wife in Mexico as dependents for tax
purposes and there is no way to prove anything. If there is, I sure like
to know about it.

I smell a scam on Americans. Our government at work. they all need to be
fired!

[KirkMcD]

This is nothing new.
See the Exemption section of IRS Publication 501:
http://www.irs.gov/pub/irs-pdf/p501.pdf (pdf)
But just like everything else, if you are going to lie to the IRS, you have to hope that you don't get audited.

[FullMetal]

I want to know how legalizing illegals would cause LESS taxes to be raised? it's not like the IRS gives money away, all exemptions and deductions do is reduce the amount of taxes you pay. So... if they end up not paying any taxes due to creative deductions, how does this make them any different than the super rich?

getting "... more money back from all of us US taxpayers." is kind of misleading. the only money anyone who does would get back is their own taxes that they paid.

unless the US is different in that regard but I highly doubt it. tax deductions by definition "reduce the taxes you pay", and I highly doubt the IRS would somehow give more money in deductions than was actually paid. it might be possible to end up paying 0 Taxes, but after that any further deductions you pay $0 in taxes and have a deduction, $0 owed - $50 = $0 owed..

[HollowMan]

Originally Posted by FullMetal

I want to know how legalizing illegals would cause LESS taxes to be raised? it's not like the IRS gives money away, all exemptions and deductions do is reduce the amount of taxes you pay. So... if they end up not paying any taxes due to creative deductions, how does this make them any different than the super rich?

getting "... more money back from all of us US taxpayers." is kind of misleading. the only money anyone who does would get back is their own taxes that they paid.

unless the US is different in that regard but I highly doubt it. tax deductions by definition "reduce the taxes you pay", and I highly doubt the IRS would somehow give more money in deductions than was actually paid. it might be possible to end up paying 0 Taxes, but after that any further deductions you pay $0 in taxes and have a deduction, $0 owed - $50 = $0 owed..

We have the Earned Income Credit over here. It is a refundable credit for people that earn low to mid incomes, and it varies based on the number of dependents you clam on your taxes

Because it's refundable, you can get more money from the government than you actually had witheld as taxes.

Earned Income Credit

[AnglRdr]

Originally Posted by HollowMan

We have the Earned Income Credit over here. It is a refundable credit for people that earn low to mid incomes, and it varies based on the number of dependents you clam on your taxes

Because it's refundable, you can get more money from the government than you actually had witheld as taxes.

Earned Income Credit

FWIW, foreign dependents do not count for EITC purposes.

Originally Posted by AnglRdr

FWIW, foreign dependents do not count for EITC purposes.

To be your qualifying child, a child must be your:

Son, daughter, stepchild, eligible foster child, or a descendant (for example, your grandchild) of any of them, or
Brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them (for example, your niece or nephew).
Definitions to clarify the relationship test.

Adopted child. An adopted child is always treated as your own child. The term "adopted child" includes a child who was lawfully placed with you for legal adoption.

Eligible Foster Child. A person is your eligible foster child if the child is placed with you by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction.

Age

Your child must be:

Under age 19 at the end of the year,
A full-time student under age 24 at the end of the year, or
Permanently and totally disabled at any time during the year, regardless of age.
Residency Test

Your child must have lived with you in the United States for more than half of the year.

My mom called me yesterday, all upset because she heard this from a friend:

When undocumented immigrants turn 65, they are somehow eligible for several thousand dollars a month (from the US government, of course) in social security payments, more payments than citizens are eligible for.

I'll admit I laughed at her, but I also thought of this particular thread. Has anyone heard this, or can anyone think of where this idea might have come from? I'd like to be able to show her some hard facts that this doesn't exist, or she's going to complain about it for the next 30 years.

[Photo Bob]

I think most of it stems from a vote a couple years ago to allow former illegals who became citizens the ability to get Social Security work credit for the years they were working illegally (and paying Social Security).

Here's one Snopes link (I think there were others about similar e-mails).

http://www.snopes.com/politics/immig...alsecurity.asp

There must be an e-mail making the rounds because someone in the office was whining about it the other day.

[snopes]

Originally Posted by mindiloohoo

Has anyone heard this, or can anyone think of where this idea might have come from?

Sounds like a version of this one:
http://www.snopes.com/politics/immigration/refugees.asp