Living on the border, this is a question we are often
asked. The answer is, it depends.
IRS regulations allow the dependency exemption to be
claimed only for children who are US
citizens or residents, or who live in Canada
or Mexico. The dependency exemption will not be allowed
for children who live in any other countries.
Tax court recently held that these regulations were valid
(Carlebach, 139 TC No. 1).
Like any good CPA, I need to add a
disclaimer: Unfortunately, it is
impossible to offer comprehensive tax info over the Internet, no matter how
well-researched or written. And remember,
I love my readers, but having me bookmarked on your computer doesn’t make you a
client: Before relying on any
information given on this site, contact a tax professional to discuss your
particular situation.