I (resident alien) have a non resident child , can I elect to change status for her?

[Moataz_Mohamed]

Hello, 

My status has changed to resident alien (starting 2024). My wife and daughter are both still non resident aliens (F2 visa, first came to US in 2022 so they should be resident in 2027).

I know that my wife can elect to be resident and obtain ITIN and we can file jointly.

My question is on my child, can we do the same with her (elect to go for resident alien status without waiting for 2027) and get her ITIN and include in our taxes? 

[tagteam]

I will page Champ @pk. Please check back later.

[pk]

@Moataz_Mohamed , I am not sure I understand  what you mean by "Resident Status" -- do you mean your immigration status was changed   through a changed visa  ( status adjustment ) or do you mean that you are now out of exemption ( came in as F-1  student ) and have now met SPT and thus for 2023  ( or 2024  ? ) you have become a resident for tax purposes.  Your wife is still on F-2 and so is your child/ daughter  --- yes ?

Please tell me more and I will circle back 

[Moataz_Mohamed]

Hello @pk @,

Here is the whole story: 

1. I cam first to US in 2018 and left on 2019 (J1) and then returned in 2021 (F1). 

2. Since I consumed my 5 years of nonresident status for tax purposes in 2023, I was told by university that I passed SPT and now I am regarded as resident alien for tax purposes. 

3. My wife and daughter first came to US in 2022 (F2). So they are still considered non resident for tax purposes as they did not pass SPT. 

4. For 2024 tax, my wife will choose to be treated as resident alien for taxes and we will fill jointly and submit an application for ITIN for her with 2024 tax return.  

Here is my question : 

For my daughter, we are not sure what to do, should we include her in our tax and submit an application for ITIN (as we did with her mom) or we can not choose her tax status and she needs to pass 5 years period to pass SPT and then she can be issues ITIN and regarded as resident alien for taxes? 

The reason I want her to go as resident alien is to claim her as dependedn in our return and since she is non resident alien for taxes we can not do so.

We are Egyptians if this could help with answeing my question. 

Thank you, 

[pk]

@Moataz_Mohamed , Salam Aliquom.  Thank you for the answers to my questions -- very much appreciated.

1. Generally F-1  implies five  calendar years of exempt status  ( exempt from counting days present )  and generally  it is  not added to the J status.   But be that as may be ,  considering that your school has taken the position that  they will count from the start of J visa.   Thus   for 2023  ( and per school position ) you are a resident for tax purposes  for 2023.

2.  Your spouse and child being on "dependent" visa ( F-2) have no independent status.  Thus they each have the same  tax status as you do.  So they are both Resident for Tax purposes when you become  Resident for

Tax Purposes.   However,  for you to include  your spouse and child on your joint return  your spouse and your child will need  a Tax ID  ( SSN or  ITIN ).

3.  For obtaining  ITIN for each ( your wife and your child ), you need to file a W-7 ( along with all the  documentation required  --- see -->   About Form W-7, Application for IRS Individual Taxpayer Identification Number | Internal Revenue Ser...

 when you file a return.  This will result in IRS issuing  ITIN retroactively.

4. Note that having your child declared as dependent  with a Tax ID  ( ITIN )  will; not result in any more deduction ( because dependent deduction is now zero till tax year 2025 )  but may open some credit to you.,

Please consider  familiarizing yourself with the articles  23 of US-Egypt Tax Treaty -- >   EGYPTWEB.PDF (irs.gov)

Khuda Hafez

Is there more I can do for you ?

[Moataz_Mohamed]

We Alikom Salam, 

Thank you for your informative reply.

So to make sure I understand correctly, we will submit ITIN application for my daughter and include her as a dependent in the tax return. We should not expect any more deductible for dependents but she should be qualified for child credit. Am I correct? 

Thank you!

[pk]

@Moataz_Mohamed  yes, you are correct.