Is it possible to deduct the money sent to my family overseas on my tax return?

NY. Can I deduct the money I send to my family abroad from my tax return? That is one of the most constant questions that immigrant workers who help their families in their countries of origin ask themselves.

According to the International Development Bank, in the first half of 2021 workers from the United States sent more than $68,000 million to Latin America. Since there are about 5 million immigrant workers in NY, this is one of the cities that sends the most remittances.

According Yuri Martínez, engineer in economics and finance and co-founder of the company QintiDocum: If it is possible to deduct in the tax return that we give to our relatives abroad… But “as long as very specific standards are met.”

Cordero indicates that in order to deduct money sent to relatives abroad from taxes, these requirements must be met…

This deduction can only be claimed if the financial aid is for family members who are citizens of the United States, nationals of the United States, or residents of Canada or Mexico.

They also have to meet the relationship requirement. “Only qualify for this tax deduction,” Cordero clarifies, “aid given to relatives that the IRS considers close.”

These are: Your child, legally adopted child, stepchild, foster child, or descendant of any of them (for example, your grandson or granddaughter).
Your brother, sister, half brother, half sister, stepbrother or stepsister.
Your father, mother, grandparent, or other direct ancestor, but not your foster parent.
Your stepfather or stepmother. A child of your brother or sister, a child of your half brother or half sister. A sibling of your father or mother. Your son-in-law, daughter-in-law, father-in-law or mother-in-law, brother-in-law or sister-in-law.

In addition: The family member who is abroad must have an adjusted gross income of less than $4,400 in 2022.

Family members must have an identification number for tax purposes. These can be a Social Security number or an Individual Taxpayer Identification Number (ITIN), which can be requested through the W-7 form.

Likewise, the expert indicates that this deduction cannot be claimed “if the financial aid is for family members who are United States citizens, United States nationals, or residents of Canada or Mexico.”