How should I proceed with tax filing without the ITIN number for my daughter ?

You can file Form W-7, Application for IRS Individual Taxpayer Identification Number (ITIN), with your federal income tax return. You must also include original documentation or certified copies from the issuing agency to prove identity and foreign status.

IRS Form W-7 - https://www.irs.gov/forms-pubs/about-form-w-7

The Form W-7 has to be included with the tax return so you will have to print and mail the return.

See this TurboTax support FAQ for how to print and mail a return using the online editions - https://ttlc.intuit.com/turbotax-support/en-us/help-article/printers-printing/print-mail-return-turbotax-online/L5bwuqXGy_US_en_US

Thank you for your response DoninGA. Do I have to file return for FED and State separately? Also, as I have only 6 days left before the filing due date, filing return through mail along with W7 form will reach in time and will be considered by State and FED?

The federal and state tax returns are filed and mailed separately in separate envelopes to separate addresses.  Only the W-7 is included with the federal tax return.  The due date for a tax return with taxes owed is April 18, 2023.  As long as the envelope for the return has a postmark of 04/18/2023 or earlier it is a timely filed return.

Thanks DoninGA. I have filled W-7 form, but I am hesitant to provide Original passport as a supporting document along with W-7 form. Other documents are not applicable. Could you please suggest the alternate option how to get certified copy of passport from the issuing agency?

You can apply for your ITIN by visiting designated IRS Taxpayer Assistance Centers (TACs). They can verify
original documentation and certified copies of the documentation from the issuing agency for primary and
secondary applicants and their dependents. For dependents, TACs can verify passports, national identification cards, and birth certificates. These documents will be returned to you immediately. Service at TACs is by appointment only.
Appointments can be scheduled by calling 844-545-5640

Go to this IRS website for TAC's by state - https://www.irs.gov/help/tac-locations-where-in-person-document-verification-is-provided

Thank you DoninGA. I called IRS to get an appointment with TAC. The first available appointment is on May 5th which is after the filing due date, so I didn't take that appointment. 

Can you please suggest if it is fine to drop my daughter as a dependent from the returns and file with IRS as we don't have ITIN. Does that make any difference in the Tax Refund? If it reduces the tax refund, please suggest if there are any other ways to make this work. Thank you in advance. 

My suggestion is to file an extension so that you will have to time to get the ITIN for your daughter.  That will give you until October 16, 2023 to file the 2022 return.  If you do not have any taxes owed on the 2022 tax return there is no need to file by the due date of April 18, 2022.  Make the appointment with TAC.

Go to this TurboTax website to e-file an extension request - https://turbotax.intuit.com/irs-tax-extensions/

That is awesome. So, I can file an extension for FED tax returns but I should still submit State returns before April 18th 2023, correct ?

Also, when you say "If you do not have any taxes owed on the 2022 tax return", that means if I don't owe taxes to FED, correct? For me it shows FED and State tax refund on the return file. Please suggest.

You can file the state return before the federal return if wish to do so.  However, it will have to be printed and mailed.  It cannot be e-filed if the federal tax return is not e-filed.

But since you also have a state tax refund it can be filed at any time within three years from the due date of the state tax return without penalty.

Thank you Donin and sorry for one more question. I started doing File Extension and I got the below IRS requirement.

---

@kapilkurapati-gm wrote:

Thank you Donin and sorry for one more question. I started doing File Extension and I got the below IRS requirement.

 

"Consent to Disclosure

I consent to allow my Intermediate Service Provider, transmitter, or Electronic Return Originator (ERO) to send my return to the IRS and to receive the following information from the IRS: (a) Acknowledgement of receipt or reason for rejection of transmission, and (b) If delayed, reason for any delay in processing the form."

 

Does this mean my return will be sent to IRS? Please advice.

---

No, this is only for your extension request, Form 4868.  It is NOT for your federal tax return, Form 1040.

Thank you so much Donin for your assistance. I have successfully submitted the e-file extension through TurboTax. Now, I will get an appointment with TAC and then do the tax returns upon receiving the ITIN. Thank you very much, again!

Good Luck with getting the ITIN.  Any other questions just ask.

Sure Donin. Thank you.

Hi Donin,

Hope you're doing great!

I applied for ITIN on May 22nd by making an appointment with Tax payer assistant. Today, I received a ITIN Rejection letter which mentioned the following reasons. 

1. You didn't include a completed and signed U.S. federal income tax return with your application.

2. You weren't listed on an attached U.S. federal income tax return, or

3. You were listed as a dependent on an attached U.S. federal income tax return but were not claimed for any allowable tax benefit.

First two reasons are not applicable, but I am not sure about the third reason. Could you please help explain this and the next steps?

Thank you.

"YOU" is referring to the dependent ... 

1. You didn't include a completed and signed U.S. federal income tax return with your application.  Did you not attach a tax return with the application? 

2. You weren't listed on an attached U.S. federal income tax return, or  If you DID attach the return was the child requiring the ITIN  not listed on the return?

3. You were listed as a dependent on an attached U.S. federal income tax return but were not claimed for any allowable tax benefit.  If the child was listed were they not claimed for any tax benefit?

READ the notice carefully ... there should be directions on what is needed to go forward...

If the error was #1 then send the return.   

If the error was #2 or #3  then complete the return showing the dependent & dependent credits.  In the TT program you should have entered  999-88-9999 for the ITIN  in the program to add the child and the credit to the return.  Then prior to mailing in the return the fake ITIN should have been blacked out and the words "applied for" entered instead.  

I have my dependent listed on the return, but the column 2 "Social security number" of Dependent section on 1040 form is blank and column 4 "child tax credit" is not checked.

I just downloaded the prepped return form from Turbo tax, I didn't do anything in addition. I left Social security field blank for dependent because there is no ITIN. Please suggest how to deal with this. 

And, to submit the return with W7, do I need to make an appointment again with Tax payer assistant?

Appreciate your help.

Hi,

Can you please review the request.

Thank you.

@Critter-3 @DoninGA 

As you suggested, I have added fake ITIN to the return. As soon as I added this ITIN for my dependent, the FED refundable amount dropped from 3842 USD to 2342 USD. Can you please explain why ? Also, please explain if the refund will be 3842$ or 2342$ after we get ITIN for my dependent. Thank you.

@Critter-3 

I see that the Tax credit was 2000$ before I added ITIN, not it is 500$ only after I added fake ITIN. 

Yep ... that is correct.  If you don't have a SS# the CTC is not allowed ... you only get the OTHER dependent credit of  only $500.

@Critter-3 

I understand that we are using fake ITIN, so only 500$ credit. That means, when IRS issue ITIN, am I going to get 2000$ refund instead of 500$? Please suggest. Sorry if I misunderstood this completely.