TaxGuyBill
Level 15
My original answer still stands ... the dependent does NOT qualify for the $500 credit.

Yes, you need to manually check the box.  The program does not know if the person that lives outside of the US is a US Citizen or Resident, so it can not check that box automatically.

So yes, they can be claimed as a dependent.  But the tax-benefit of claiming that dependent is much more limited (no exemption amount, no $500 credit).  Although less common, claiming the dependent CAN still have benefits.  For example, the taxpayer can claim medical expenses for the dependent and it would affect the Household Size for the Premium Tax Credit.
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