It depends on the reason the application for your son's ITIN was denied. You could file a return with just your wife's ITIN, but you won't be able to get the Child Tax Credit for your son until he has a Social Security Number. If your child does not have an SSN that is valid for employment, you may be eligible to claim the Credit for Other Dependents for that child once they have an ITIN.
The Credit for Other Dependents is a tax credit available to taxpayers for each of their dependents who was a U.S. citizen, U.S. national, or U.S. resident alien in 2021 but can't be claimed for the Child Tax Credit. The maximum credit amount is $500 for each dependent. But the credit can only reduce your tax and provides no benefit if you don't have any tax.
If the ITIN application is rejected with a CP567 notice letter issued, you have the option to re-apply with a new ITIN application by completing Form W7 and ensuring the supporting documents are enclosed and the new application is filled out correctly this time.
If you received IRS Notice CP567, please see this IRS webpage for information on how to respond.
You can call the phone number on the letter, or you can make an appointment to visit the Taxpayer Assistance Center again for help with resolving why the ITIN for your son was not approved. If the ITIN issue is resolved, then you may be able to claim the Credit for Other Dependents.
Please also see this TurboTax tips article regarding filing with an ITIN.
[Edited 03/27/23| 11:29am PST]
@Mobeen (edited)
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
