L1 Visa Dependents with ITIN

[Anonymous]

I am lawfully in the US since Oct 2019 with an L1 visa, I have 2 kids a 3 and a 5 yr old and my husband.

Last year I submitted my taxes and requested my kids ITIN, since they were not born in the US. My tax preparer deducted $500 for each of my kids since they don't have an SSN and technically are not eligible for one since you only obtain that for work purposes, but in speaking with my lawyer this came up and he said I should look into it since they are lawfully here on their L2 visas is not like they are illegally. So I have two questions:

1. do my kids adopt my "US resident for tax purposes" status and are eligible for Child Tax Credit ? I read Publication 501 but can't seem to find an answer 

2. what turbo tax product is best for my case? my husband is self-employed with 1099 and W-2 work in 2020 

I went to Sprintax and my case is not applicable for them since I should be filing as US resident.

Our visas are not expired and our kids meet all the qualifying dependant criteria.

[ReneeM7122]

Your kids don't qualify for the Child Tax Credit because they don't have Social Security numbers, but they might instead be eligible for the $500 Credit for Other Dependents.  The best software for you is TurboTax Self-Employed.   Here is a link that compares TurboTax products.

To qualify for the Child Tax Credit, your child must fit all of these requirements:

• Be under age 17 at the end of the tax year
• Is your son, daughter, stepchild, foster child, adopted child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of any of them (for example, a grandchild, niece, or nephew)
• Has his or her own Social Security Number
  • Children with ITINs don't qualify, but may instead be eligible for the $500 Credit for Other Dependents
• Lived with you for more than half the year
• Didn't support him/herself (didn't pay more than half their own expenses)
• Is a U.S. citizen, U.S. national, or U.S. resident alien
  • Residents of Canada or Mexico wouldn't qualify