What Citizenship status to select for Children of Non resident aliens - Married filling jointly?

[pavitardua]

I see a question which asks for Citizenship status for my child. FYI we entered USA for the first time in May 2024. While filing taxes via Turbo Tax it asks for Citizenship status of my child. FYI I am here on L1 Visa and my wife and child have L2.

The options provided are:

1. US Citizer or Legal Resident (I beleive children of non resident aliens can be categorized as Legal residents.)

2. A resident of Canada or Mexico (Not applicable to us...)

3. None of the Above (Not sure if this should be selected.)

[Vanessa A]

Your children would be considered US Residents ONCE the Substantial Presence Test was met. How they are treated on the return, will depend on how you are treated and elections you make.  

Be aware, If your child does not have a SSN valid for employment, they would not qualify for the Child Tax Credit or the Earned Income Credit, but they may qualify for the $500 Non-Refundable Other Dependent Credit if they have an ITIN. 
 

Since you moved here in May of 2024, you would have met the Substantial Presence Test,  so you would be considered a Dual Status Resident. 

This means, you will report your income earned after you met the substantial presence test (183 days) on your form 1040 as a US Resident.  This can be filed through TurboTax. 

For the income you earned prior to meeting the substantial presence test, you would report on 1040NR.  TurboTax does not support the 1040NR, however Sprintax.com does. 

Income you received prior to arriving in the US would not be taxable to the US, if you were not a US Resident or Green Card Holder. 

Claiming Non Citizen Spouse and Children on Your Taxes

How to obtain an ITIN

US. Tax Guide for Aliens

[pavitardua]

Thanks @Vanessa A for the elaborate explanation. I have another question regarding my child's ITIN, I don't have it yet, it seems I need to apply for it and one of the pre-requisites for the ITIN application is a Completed 1040. Now Turbotax doesn't allow me to file or download a 1040 because I don't have an ITIN. Please advise a solution to this chicken and egg problem.

[pk]

@pavitardua  while I am not familiar with the screens of the online  version:

(a) Since you entered the US in May of 2024 with work visa, you are a Resident for Tax purposes for  Tax year 2024  ( passed the SPT sometime in Oct/Nov of 2024 ).  The dependent visa holder  also become  Resident for Tax purposes  when you became  a Resident for Tax Purposes.

(b)  Since  you first day of the year ( for Residency purposes ) is   05/X/2014, you cannot use standard deduction --- must use itemized deduction.

(c) to be able to file jointly and claim your dependent child on your return , each member  must have TIN  -- Tax ID  ( SSN or ITIN )

(d)  Which country ( assuming all from the same ) are you a citizen of ?

(c)  given the complexity of your situation, I would highly recommend Windows TurboTax Home & Business or premier.

Does this  help ?   Is there more I can do for you ?  Do you need more help ?