@zhifen wrote:
Thanks for your detailed advice. Another question, If I am not going to file W-7 and amended 1040of 2020. but I get ITIN when filed 2021 tax return, How can I get the credit of 2020?
That's tricky. Under the PATH act, you can't get tax credits for a dependent unless you file an "on time" tax return with a proper tax number (SSN or ITIN). Filing without a tax number but with a W-7 counts as filing on time with the tax number. However, if you file an amended return now, it won't be considered on time.
So my first idea is, I know this provision applies to EIC and the $2000 child tax credit, but I don't know if this provision applies to the $500 other dependent credit. If the PATH act does not apply to the $500 other dependent credit, then you could claim the credit later, by filing an amended 2020 return after the 2021 return is processed and the ITIN is issued. If the PATH act does not apply, you would have 3 years to file an amended 2020 return and claim the additional credit.
Second issue is, if you filed after May 17 (the deadline this year) and did not have an extension, this might be why you were denied. You did not file an on-time return to claim the credit, and you are finished for 2020, there is nothing to get by filing again.
The PATH act is why I am not more confident in my suggestions. If you amend now with W-7 and the PATH act does apply, then your W-7 will get rejected again, your amended return will be denied, and you will have to re-apply for the ITIN with your 2021 tax return.
If the PATH act does not apply, then you can amend now and get the credit and ITIN (and you must wait for the ITIN before you file for 2021) or you can apply for the W-7 with your 2021 tax return and then amend your 2020 return later, after the ITIN is issued.
