Submitted By: Sheila
Answered: February 10, 2017 9:00 am

We support a niece who lives in Mexico. Can we take a dependency exemption for her?

It may be possible to claim a dependency exemption for a relative living in Mexico. While the niece cannot be a qualifying child because she does not live with you, the niece may be a qualifying relative. As long as she cannot be claimed as someone else’s dependent, then you can claim a dependency exemption (assuming all other dependency exemption requirements are met).

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Tax Glossary

Qualified plan

A retirement plan that meets tax law tests and allows for tax deferment and tax-free accumulation of income until benefits are withdrawn. Pension, profit-sharing, stock bonus, employee stock ownership, and Keogh plans and IRAs may be qualified plans.

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