@szie21707 . having read through all the responses to your query, I would like to add the following:
(a) ITIN is only for purposes of filing a US federal ( and by extension a State return)
(b) if a person cannot ( does need to ) be included on a return, there is no requirement for ITIN and therefore IRS will not accept the application
(c) for a person to be your dependent , you and the "dependent" must meet all the requirements of qualifying child or qualifying relative. Your Niece , not living with you in the USA, cannot be your qualifying child for EITC or child credit or child and dependent care because each require the person to be living in your home and/or have SSN. Since dependent credit is suspended ( zero ) for the years 2018 through 2025, there is no reason for claiming the niece as a dependent -- thus IRS will not issue an ITIN.
That is my take on this issue.
