How to get a $500 IRS credit for sending remittances to family in Mexico
The IRS offers an extra credit to taxpayers who can show that they use at least half of their wealth on dependents, whether they are US residents or not.
Knowing about the different tax credits offered by the Internal Revenue Service (IRS) can get you a bigger refund when you file.
Among the many tax benefits that taxpayers can claim, the Credit for Other Dependents, including those living abroad, stands out. Through this credit, the IRS offers $500 dollars to all those taxpayers who demonstrate a minimum contribution of 50% in financial support or maintenance for family members.
This means that if you live in the United States and every month you send money to support family members in Mexico or Canada, you may be eligible for a $500 refund from the IRS.
However, this creidt is only available if you do not qualify for the Child Tax Credit.
How to Get a $500 IRS Credit for Sending Remittances to Family in Mexico
To be eligible for the $500 dollar credit you must be a tax filer with United States citizenship or legal permanent residence in the United States, that is; have a Green Card. In addition, you must verify that the money you send represents at least 50% of the financial support or maintenance for your relatives. It does not matter if these relatives are citizens or permanent residents of the United States.
However, if you meet the above requirements, you should be aware that residents of Mexico, Canada, or nationals of the United States use the same rules as US citizens to determine who is eligible as a dependent. According to the IRS, a dependent can be:
Note that the credit begins to taper gradually when the taxpayer’s income exceeds $200,000 or $400,000 for married couples filing jointly.