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szie21707
Level 3

ITIN Renewal

To renew an ITIN for a qualifying dependent of any age residing outside of the United States (Mexico), will the ITIN Unit renew it if I am not receiving an allowable tax benefit for my dependent? I got this from the IRS website: The deduction for personal exemption was suspended for tax years 2018 through 2025. For the tax years beginning after 2017, spouses or dependents residing outside of the US aren't eligible for an ITIN, unless they qualify for an allowable tax benefit. The individual must be listed on an attached Federal Return with the schedule or form that applies to the allowable tax benefit.

 

Can someone clarify it the ITIN Unit will be renewing existing expired ITINs for dependent's residing in Mexico that will not qualify for an allowable tax benefit on a Federal Return. I appreciate any response. Thanks

2 Best answer

Accepted Solutions
AmeliesUncle
Level 13

ITIN Renewal


@KurtL1 wrote:

A taxpayer can still claim a parent as a dependent that is a resident of Canada or Mexico.

 

See My mom is my dependent, she lives in mexico and she has an ...

 

If the parent is a resident of Mexico or Canada they would not be eligible for a Social Security Number but would need an ITIN, that would be needed to renewed.  

 

Although the dependent exemption was eliminated by the Tax Cut and Jobs Act, by claiming a parent the taxpayer would be eligible to receive the new $500 Credit for Other Dependents tax benefit.


Although you can claim the non-US person as a dependent, the $500 credit is only for dependents that are a US Citizen, Resident, or National.

 

However, there could be other benefits for claiming a non-US dependent.  Medical expenses, increasing the Family Size for the Premium Tax Credit, and State deductions are all common reasons.  They WILL renew ITINs for State Tax purposes, even if it does not affect the Federal return (however, I am unsure if you can renew the ITIN via the tax return, so you may need to renew it another way).

View solution in original post

pk
Level 13
Level 13

ITIN Renewal

@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.

View solution in original post

9 Replies
KurtL1
Expert Alumni

ITIN Renewal

A taxpayer can still claim a parent as a dependent that is a resident of Canada or Mexico.

 

See My mom is my dependent, she lives in mexico and she has an ...

 

If the parent is a resident of Mexico or Canada they would not be eligible for a Social Security Number but would need an ITIN, that would be needed to renewed.  

 

Although the dependent exemption was eliminated by the Tax Cut and Jobs Act, by claiming a parent the taxpayer would be eligible to receive the new $500 Credit for Other Dependents tax benefit.

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AmeliesUncle
Level 13

ITIN Renewal


@KurtL1 wrote:

A taxpayer can still claim a parent as a dependent that is a resident of Canada or Mexico.

 

See My mom is my dependent, she lives in mexico and she has an ...

 

If the parent is a resident of Mexico or Canada they would not be eligible for a Social Security Number but would need an ITIN, that would be needed to renewed.  

 

Although the dependent exemption was eliminated by the Tax Cut and Jobs Act, by claiming a parent the taxpayer would be eligible to receive the new $500 Credit for Other Dependents tax benefit.


Although you can claim the non-US person as a dependent, the $500 credit is only for dependents that are a US Citizen, Resident, or National.

 

However, there could be other benefits for claiming a non-US dependent.  Medical expenses, increasing the Family Size for the Premium Tax Credit, and State deductions are all common reasons.  They WILL renew ITINs for State Tax purposes, even if it does not affect the Federal return (however, I am unsure if you can renew the ITIN via the tax return, so you may need to renew it another way).

szie21707
Level 3

ITIN Renewal

Thank you for your response. I absolutely appreciate it.

 

However, the ITIN Unit hasn't accepted a renewed W-7 application for a niece residing in Mexico because box D is marked under reason you are submitting this W-7 & then request proof of U.S. residence for the dependent (even though the dependent has "Never entered the United States" indicated on line 6d).

 

Is there a reason the ITIN Unit is not accepting the documentation without submitting U.S. residence (since they reside in Mexico)? I thought maybe the IRS wasn't considering Mexican residents.

AmeliesUncle
Level 13

ITIN Renewal

They should still be able to receive an ITIN, assuming there is a purpose for it.

 

If you received a notification from the IRS, I would call the telephone number on that notice and talk to them about it.  Explain WHY a you need an ITIN for a dependent that is not in the US, and they should be able to help you.

pk
Level 13
Level 13

ITIN Renewal

@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.

muneca2006
Returning Member

ITIN Renewal

My husband and I are filing joint return and added his parents as our dependents but we are not receiving the other dependent credit. Why could that be? They are residents of Mexico, lived there all year, but we are supporting them 100% and they have an ITIN but turbo tax is saying they are disqualified for this credit.  

VictoriaD75
Employee Tax Expert

ITIN Renewal

If they had income greater than $4,200 in 2019, they would not be eligible for the credit. If you are supporting them, and they have an ITIN, they are not excluded as dependents. Parents do not have to live in the same household as you for the entire year. 

 

Claiming Parents as a Dependent

 

The IRS has a tool to help determine if you can claim an individual as a dependent. The link is found below.

 

Whom May I Claim as a Dependent?

 

 

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AmeliesUncle
Level 13

ITIN Renewal


@muneca2006 wrote:

They are residents of Mexico, lived there all year,


 

For the "other dependent credit", the dependent needs to be a Citizen, Resident, or National of the United States.  If the dependent is not a Citizen, Resident, or National of the United States, you don't qualify to claim the $500 "other dependent credit".

cubbie2015
Returning Member

ITIN Renewal

The ITIN dept will NOT renew any application for anyone not residing in the U.S. If you try to pick another box A-H you will need to submit the tax return with verifiable income documents.

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