ITIN REJECTED / J2 Visa / CHILD AGE 7 / PRIMARY HOLDER J1 VISA

[sundargba]

I am in the J1 visa category, and my children are in the J2 visa category, aged 7 and 12. They have been with me for more than 300 days in the last year. I filed a tax return (jointly married filing) using the 1040 form for 2023, along with an ITIN-W7 application to the IRS office in Cleveland, Ohio. I claimed a tax benefit under Schedule 8812 in the 1040 form and mentioned my kids' names on the form where the ITIN column indicated Applied (the original W7 was enclosed with the filing).

After six weeks, the ITIN application was rejected, and I received a standard letter stating two reasons:

1. I did not include a completed and signed US Federal income tax return 

2. I either wasn't listed on an attached U.S Federal Income Tax Return, or I was listed but not claimed for any allowable tax benefit.

However, I compelted and signed 1040, attached the W7, and claimed Schedule 8812 for child tax credit

Now the IRS has sent a letter stating that I have to pay additional tax because my child does not have an ITIN. I reapplied with their rejection letter.

How can I obtain an ITIN and get the tax benfit for 2023 .. your suggestion will be highly appreciated

[pk]

@sundargba , first Namaste;

Second, TurboTax provides only  tax prep and transmittal service.  The ITIN issuance  is  ONLY done by IRS.

Third,  are a J-1  teacher/researcher  or student/trainee --- what I am trying get to is  if you are a Resident for Tax purposes and therefore  must file form 1040 OR  a Non-Resident Alien and must file form 1040-NR.

When did you enter the USA with J-1 ?   

Did your family enter at the same time? 

Are you married to  another NRA or to a US person ( citizen/GreenCard / Resident for Tax purposes ?

If you arrived in 2022, how did you file your return for calendar year 2022 ?

I will circle back once I hear from you ?

[sundargba]

Thank you for your response.

I arrived here in January 2022, while my spouse and children joined me in July 2022.

For the 2022 tax return, my spouse obtained an SSN and filed a joint return, submitting a W7 for our child. However, it was rejected twice due to the absence of a child tax credit claim.

For the 2023 tax return, we filed a joint return as married, using Form 1040, and claimed the child tax credit, noting it as "Applied." We also submitted a W7 for the children along with the return.

As for the 2023 tax return, we have been in the USA for almost 300 days.

We have resubmitted the W7 with the 1040 form now, as we didn't file Form 1040 NR, having filed jointly as married.

Additional Question: Can I file tax extension Form 4868 after filing Form 1040, considering the W7 for my kids is still in process? Your response is highly appreciated.

[SusanY1]

Yes, you can file Form 4868 since the ITIN application is in process, and it is a good idea to do so. The IRS should use the date your return was received with the ITIN application as the date your return was also received, but that is a manual process and as such there is room for error. 

 

[sundargba]

Hello,

I already filed 1040 Filed Jointly (J1 and J2) and W7 is re-submitted along with 2023 filed returned. 

Can i still be allowed to submit Form 4868? 

Thanks & looking for your suggestion

[SusanY1 · Accepted solution]

Yes, you can still submit the 4868.  Since you would have printed your return to mail in, TurboTax should allow you to file it electronically.  However, if you have any issues with that you still have time to mail it in.  It would just need to be post marked prior to or on April 15.  

[sundargba]

I arrived in the USA on January 10, 2022, under a J1 Visa, while my spouse and children arrived on July 6, 2022, under J2 Visas.

My spouse obtained an SSN in September 2022, along with work authorization, and had income in 2022.

Therefore, we filed our taxes jointly with the assistance of a tax consultant.

For our children, we submitted W7 forms for ITINs, which were rejected almost three times during 2022.

Question: Is filing a joint tax return correct under J1 and J2 visas in 2022?

For the 2023 tax return:

We filed jointly (J1 & J2) on Form 1040 as both had income, along with my children's W7 forms for ITINs.

Once again, the return was rejected by the IRS.

For the fifth attempt, we submitted the W7 along with the previously submitted 1040 (which resulted in receiving a CP11 Notice to pay tax, considered for child tax benefit).

Now the ITIN application is under process, but it's uncertain whether it will be approved this time.

[pk]

@sundargba , having gone through this thread and  the response from my colleague @SusanY1  ( and generally agreeing with ), I am still uncertain as to your  status.  

The fact that your spouse  on J-2 was  given permission to work ( and therefore SSN) -- EAD, implies to me that you are a J1  Teacher/Researcher and not a student.  And if IK assume that yolo are from  India, then  why are you not using the treaty condition of being taxed on your income for the first two years ?   Similarly, I am not sure whether you are a resident for tax purposes or not ----  ( exempt ? ).

So please could you tell me whether you are s student/trainee  or  a Teacher/Researcher ?   Which country are you from ?  And if teacher/Researcher why did you not exclude your income from US taxes ?   Are you exempt ?

pk

[sundargba]

J1 - Post Doc Reasearch 

Country: India 

I came 10th Jan 2022 & There was no tax under which filing 1040 filed Jointly with spouse.

Tax consultant didn't suggest to file 1040-NR.

Can you please advise what needs to be done further in 2023 tax return. I already filed as Married filed Jointly. 

[sundargba]

Additionally, 

I was in USA during 2018 (Oct to Dec) and 2019 (Jan to March) in J1 post doc research. And again, came to USA in Jan 2022 with different J1 visa as post doc research. (After Two-year home residency rule)

[pk · Accepted solution]

@sundargba , primafacie  I think your filing is good and you  would not have been exempt ( from counting days ).  And also I think  US/India tax treaty limits the two year tax free earnings only for the first time  ( I will have to refresh my memory on that ).

I am understanding from this that you have filed 2023 return  ( MFJ) , included the children as  NRA, filed by mail and included the   W-7 and the  documents needed for issuance of ITIN.  You do not have to ask for an extension -- file the stuff on the assumption that  the IKTIN will be issued.  Generally  IRS issues the ITIN retroactively when all the docs  are met and when the person is listed on the return   ( it is issued ONLY for the purposes of  filing a return.

Once 2023 is processed and the KITIN has been issued, then you file an amended return for 2022 to claim the  credit.

Does this make sense ?

Namaste ji

pk

[sundargba]

Does J1 (research) and J2 allowed to file jointly considered as resident for tax purpose in our case? 

[pk · Accepted solution]

@sundargba  if you are married , of course.  Since the spouse's visa ( J-2) is a dependent visa  , her status is same as yours.  

If this has answered  your query, please consider accepting the answer  so the thread will close.  If you have more questions on the subject, please add to this thread.  If your questions are not of interest to general users, you can always PM me.

Namaste ji

pk

[sundargba · Accepted solution]

Hello,

Thanks for your detailed response. 

This question is the continuation of the previous question which may help the other user as well.

Given that my 1040 return for 2023 has already been submitted, if my children's ITINs are issued by the IRS after the tax return due date (15th April 2024), would I still be eligible to receive the Child Tax Benefit (Schedule 8812) for the year 2023 if I file an amended return upon receiving the ITINs?

[SusanY1 · Accepted solution]

Unfortunately, no.  In order to claim the credit the ITIN (or SSN) must be issued prior to the tax filing deadline (including extensions.)