Apply for ITIN for credit for other dependent

[zhifen]

I applied  for ITIN because of credit for other dependent (OTC) for my daughter, but for no ITIN number, the 1040 didn't show quality for OTC. the ITIN was rejected(the reason is no allowable benefit). NOW I do not kow How to send 1040 form again with w7 to apply ITIN. if I send a copy, it will be rejected again. If I send a new one with quality for OTC, I will have duplicate original form. Do you know how to do?

[Opus 17]

I don't understand.  You filed a W-7 for a dependent without attaching it to a tax return?  (You didn't notice that was against the rules in the W-7 instructions?). Did you already file a 2020 tax return?  Did you list your child on your tax return or not?

[zhifen]

Thanks for your reply, I filed 2020 tax return, and married jointly, my daughter as dependent. For ITIN application, I filed with W-7 and passport of my daighter. 

[Opus 17]

---

@zhifen wrote:

Thanks for your reply, I filed 2020 tax return, and married jointly, my daughter as dependent. For ITIN application, I filed with W-7 and passport of my daighter. 

---

Did you file the W-7 separately, or attached to your tax return?

How did you claim your daughter as a dependent on your tax return if you did not have an ITIN or SSN?

Has your tax refund been paid?  Was it the amount you expected?  Did you receive the $500 credit for "other dependent?"

[zhifen]

Not W-7 only with tax return together.

As my dependent do not need SSN or ITIN.

My daughter's ITIN was rejected because my 1040 form didn't show any allowable benefit. (without SSN/ITIN, can not claim child tax credit OR credit for other dependent). I did not get the 500$.

[Opus 17]

---

@zhifen wrote:

Not W-7 only with tax return together.

As my dependent do not need SSN or ITIN.

My daughter's ITIN was rejected because my 1040 form didn't show any allowable benefit. (without SSN/ITIN, can not claim child tax credit OR credit for other dependent). I did not get the 500$.

---

I'm still not 100% certain what happened, but I think the problem is that you did not claim the credit when you should have.  You can claim the dependent/child tax credit in Turbotax by using a fake tax number for your child (to pass the program's error check).  Then print your return, use some "white out" to cover the fake tax number, and write "applied for."  Then mail the tax return and the W-7 to the IRS.  After they issue the ITIN, they will process the tax return.  

For 2020, you may be able to file an amended return, use a fake SSN to claim the $500 other dependent credit in the program, white it out, and mail it to the IRS with another W-7.  Because of the 2015 PATH act, the $2000 child tax credit won't be paid, but the $500 other dependent credit might be paid.  You might also get $1100 in stimulus funds.  Then for 2021, you should be able to use the ITIN to claim the $3000 or $3600 child tax credit.

Or, let 2020 go and don't follow up with an amended return.  With your 2021 tax return, claim your child as a qualifying child dependent for the $3000 or $3600 credit using a fake SSN, then white it out, and mail in the return and the W-7.  You might also get a $1400 stimulus payment.

I don't know if you should try and file the amended return.  Amended returns are long-delayed, but because the tax return goes to a different office when filed with a W-7, maybe it won't take as long.  If you decide to file the amended return with W-7, make sure you don't file your 2021 return until you get the ITIN.  If you are waiting past April 15, be sure to request the automatic extension.

If you don't re-file the W-7 with amended return for 2020, make sure you file your 2021 return on time, and that you claim the child as a qualifying child dependent, even if you have to use a fake SSN to pass the error check (but be sure to cover it up before actually mailing the return.)

[zhifen]

Thanks for your detailed advice. Another question, If I am not going to file W-7 and amended 1040of 2020. but I get ITIN when filed 2021 tax return,  How can I get the credit of 2020?

[Opus 17]

---

@zhifen wrote:

Thanks for your detailed advice. Another question, If I am not going to file W-7 and amended 1040of 2020. but I get ITIN when filed 2021 tax return,  How can I get the credit of 2020?

---

That's tricky.  Under the PATH act, you can't get tax credits for a dependent unless you file an "on time" tax return with a proper tax number (SSN or ITIN).  Filing without a tax number but with a W-7 counts as filing on time with the tax number.  However, if you file an amended return now, it won't be considered on time.

So my first idea is, I know this provision applies to EIC and the $2000 child tax credit, but I don't know if this provision applies to the $500 other dependent credit.  If the PATH act does not apply to the $500 other dependent credit, then you could claim the credit later, by filing an amended 2020 return after the 2021 return is processed and the ITIN is issued.  If the PATH act does not apply, you would have 3 years to file an amended 2020 return and claim the additional credit.  

Second issue is, if you filed after May 17 (the deadline this year) and did not have an extension, this might be why you were denied.  You did not file an on-time return to claim the credit, and you are finished for 2020, there is nothing to get by filing again.

The PATH act is why I am not more confident in my suggestions.  If you amend now with W-7 and the PATH act does apply, then your W-7 will get rejected again, your amended return will be denied, and you will have to re-apply for the ITIN with your 2021 tax return.

If the PATH act does not apply, then you can amend now and get the credit and ITIN (and you must wait for the ITIN before you file for 2021) or you can apply for the W-7 with your 2021 tax return and then amend your 2020 return later, after the ITIN is issued. 

[zhifen]

Thanks so much!

[zhifen]

Hi,

I will apply for an ITIN for my daughter with 2021 tax return. few question is still confusing, if I use fake SSN number "[removed]", Tubotax will show my daughter is not qulified CTC.  I think it will be same as last year, my daughter's ITIN will be rejected again because of not having allowable benefit. If I leave the SSN blank, Tubotax will show the 3000$ CTC, but I am applying for ITIN, it should be 500$ credit for other dependent. 

[DMarkM1]

On your 2021 return put in the "Fake" SSN and be sure to select that it is "not valid for employment."  That should make her ineligible for the Child Tax Credit but still eligible for the Other Dependent Credit.  Then white out the social security number and mail in the return and W7. 

Be sure to file for an extension separately to allow time for the ITIN to be issued before the filing deadline.  

@zhifen

Edited [3/10/2022 5:15am PST]

[zhifen]

Thanks for your reply!

I followed your instruction, and used fake ssn number and selectived not valid for employment, but turbotax showed all credits were not qulified. I do not know where the question is.

[zhifen]

Hi，

 When put in the "Fake" SSN and select  "not valid for employment."  then a 8812 form will let me review and entry"yes or not" puerto  Rico resident and principal place of abode , I checked #7 in part1-A"child tax credit and credit for other dependents", it showed 500$, but why turbotax said my daughter is not qulified for these credits?( child tax credit and credit for other dependents), I am so confused.

Another question, 8812 will be printed or not with 1040 when I process to last step"file"? I noticed that it ahows  "attach to 1040.." under title.

Thanks again!

[AliciaP1]

In order to be qualified for the Child Tax Credit and other dependent credits, the dependent must have already had an SSN issued and reported on the return.

See What is the Child Tax Credit? for more details.

@zhifen

[rosarioc25]

I have the same problem right now. I applied for an ITIN back in March 2022. I was claimed as a dependent by my parents and I sent the W-7, passport, tax return and the IRS recently sent a letter saying my application was rejected because 

" you didn't include a tax return..."

"you weren't listed on a tax return....

"you were listed as a dependent on an attached tax return but were not claimed for any allowable tax benefit"

As I reviewed the documents, I noticed that the tax does not have the box checked for credit for other dependents. Turbo tax did not check those boxes, therefore i believe that is the issue with my itin application. 

I spoke to the IRS and they said that "they did not receive the tax return". I called a second time and they said that proof of address was needed. I sent a school transcript but apparently was not sufficient. 

I would like to know if you were able to resolve the issue and how were you able to resolve it. 

Thanks.