THEY CAN DEDUCT AS MANY MEXICANS LIVING IN
MEXICO AS THEY WANT!!!!! WHO IS GOING TO CHECK?
IRS INSTRUCTIONS FOR COMPLETING FORM 1040 A
For each exemption you can take, you can deduct $2,800 on line 24. Line 6b
Check the box on line 6b if you file either (1) a joint return or (2) a separate return and your spouse had no income and is not filing a return. However, do not check the box if your spouse can be claimed as a dependent on another person's return. If you were divorced or legally separated at the end of 2000, you cannot take an exemption for your former spouse. If, at the end of 2000, your divorce was not final (an interlocutory decree), you are considered married for the whole year.
Death of Your Spouse. If your spouse died in 2000 and you did not remarry by the end of 2000, check the box on line 6b if you could have taken an exemption for your spouse on the date of death. For other filing instructions, see What if a Taxpayer Died? on page 15.
Line 6c Dependents
You can take an exemption for each of your dependents who was alive during some part of 2000. This includes a baby born in 2000 or a person who died in 2000. For more details, see Pub. 501. Any person who meets all five of the following tests qualifies as your dependent.
If you have more than seven dependents, attach a statement to your return with the required information.
The person must be your relative. But see Exception at the end of this test, Test 1. The following people are considered your relatives.
oYour child, stepchild, adopted child; a child who lived in your home as a family member if placed with you by an authorized placement agency for legal adoption (including any person authorized by state law to place children for legal adoption); or a foster child (any child who lived in your home as a family member for the whole year).
Your grandchild, great-grandchild, etc. Your son-in-law, daughter-in-law. Your parent, stepparent, parent-in-law. Your grandparent, great-grandparent, etc. oYour brother, sister, half brother, half sister, stepbrother, stepsister, brother-in-law, sister-in-law. Your aunt, uncle, nephew, niece if related by blood. Any relationships established by marriage are not treated as ended by divorce or death.
Exception. A person who lived in your home as a family member for the entire year can also be considered a dependent. However, the relationship must not violate local law.
Test 2-Married Person
If the person is married and files a joint return, you cannot take an exemption for the person.
If the person and the person's spouse file a joint return only to get a refund of all tax withheld, you may be able to claim him or her if the other four tests are met. See Pub. 501 for details.
Test 3-Citizen or Resident
The person must be one of the following:
A U.S. citizen or resident alien, or A resident of Canada or Mexico, or Your adopted child who is not a U.S. citizen but who lived with you all year in a foreign country.
To find out who is a resident alien, use TeleTax Topic 851 (see page 10) or see Pub. 519.
Generally, the person's gross income must be less than $2,800.
Gross income does not include nontaxable income, such as welfare benefits or nontaxable social security benefits. Income earned by a permanently and totally disabled person for services performed at a sheltered workshop school is generally not included for purposes of the income test. See Pub. 501 for details.
Exception for Your Child. Your child can have gross income of $2,800 or more if he or she was:
1. Under age 19 at the end of 2000 or
2. Under age 24 at the end of 2000 and was a student. Your child was a student if during any 5 months of 2000 he or she-
Was enrolled as a full-time student at a school or
Took a full-time, on-farm training course. The course had to be given by a school or a state, county, or local government agency.
A school includes technical, trade, and mechanical schools. It does not include on-the-job training courses, correspondence schools, or night schools.
The general rule is that you had to provide over half the person's total support in 2000. If you file a joint return, support can come from either spouse. If you remarried, the support provided by your new spouse is treated as support coming from you. For exceptions to the support test, see Children of Divorced or Separated Parents and Person Supported by Two or More Taxpayers on this page. Support includes food, a place to live, clothing, medical and dental care, and education. It also includes items such as a car and furniture, but only if they are for the person's own use or benefit. In figuring total support:
·Use the actual cost of these items. But you should figure the cost of a place to live at its fair rental value.
·Include money the person used for his or her own support, even if this money was not taxable. Examples are gifts, savings, social security and welfare benefits, and other public assistance payments. This support is treated as not coming from you.
Support does not include items such as income tax, social security and Medicare tax, life insurance premiums, scholarship grants, or funeral expenses.
If you care for a foster child, see Pub. 501 for special rules that apply.
Children of Divorced or Separated Parents. Special rules apply to determine if the support test is met for children of divorced or separated parents. The rules also apply to children of parents who lived apart during the last 6 months of the year, even if they do not have a separation agreement. For these rules, a custodial parent is the parent who had custody of the child for most of the year. A noncustodial parent is the parent who had custody for the shorter period of time or who did not have custody at all. See Pub. 501 for the definition of custody.
The general rule is that the custodial parent is treated as having provided over half of the child's total support if both parents together paid over half of the child's support. This means that the custodial parent can claim the child as a dependent if the other dependency tests are also met. But if you are the noncustodial parent, you are treated as having provided over half of the child's support and can claim the child as a dependent if both parents together paid over half of the child's support, the other dependency tests are met, and either 1 or 2 below applies.
1. The custodial parent agrees not to claim the child's exemption for 2000 by signing Form 8332 or a similar statement. But you (as the noncustodial parent) must attach this signed Form 8332 or similar statement to your return. Instead of attaching Form 8332, you can attach a copy of certain pages of your divorce decree separation agreement if it went into effect after 1984 (see Children Who Did Not Live With You Due to Divorce or Separation on the next page).
2. Your divorce decree or written separation agreement went into effect before 1985 and it states that you (the noncustodial parent) can claim the child as a dependent. But you must have given at least $600 for the child's support in 2000. This rule does not apply if your decree or agreement was changed after 1984 to say that you cannot claim the child as your dependent.
Person Supported by Two or More Taxpayers. Even if you did not pay over half of another person's support, you might still be able to claim him or her as a dependent if all five of the following apply.
1. You and one or more other eligible person(s) (see below) together paid over half of another person's support.
2. You paid over 10% of that person's support.
3. No one alone paid over half of that person's support.
4. Tests 1 through 4 that begin on page 23 are met.
5. Each other eligible person who paid over 10% of support completes Form 2120 and you attach these forms to your return. The form states that only you will claim the person as a dependent for 2000.
An eligible person is someone who could have claimed another person as a dependent except that he or she did not pay over half of that person's support.
Line 6c, Column (2)
You must enter each dependent's social security number (SSN). Be sure the name and SSN entered agree with the dependent's social security card. Otherwise, at the time we process your return, we may disallow the exemption claimed for the dependent and reduce or disallow any other tax benefits (such as the child tax credit and earned income credit) based on that dependent. If the name or SSN on the dependent's social security card is not correct, call the Social Security Administration at 1-800-772-1213.
For details on how your dependent can get an SSN, see page 21. If your dependent will not have a number by April 16, 2001, see What if You Cannot File on Time? on page 15.
If your dependent child was born and died in 2000 and you do not have an SSN for the child, attach a copy of the child's birth certificate instead and enter "Died" in column (2).
Adoption Taxpayer Identification Numbers (ATINs). If you have a dependent who was placed with you by an authorized placement agency and you do not know his or her SSN, you must get an ATIN for the dependent from the IRS. An authorized placement agency includes any person authorized by state law to place children for legal adoption. See Form W-7A for details.
Line 6c, Column (4) Check the box in this column if your dependent is a qualifying child for the child tax credit (defined on page 25). If you have at least one qualifying child, you may be able to take the child tax credit on line 30.