ITINs

[mvp2885]

Hello. I'm a new tax preparer and coming into the field between the old/new changes. I have a question regarding ITINs, as a lot of my clients will be clients with ITINs. The Questions are as follow;

- Per my understanding, prior to 2018, children with ITINs could be used for the Child Tax Credit, but not anymore?
-If a parent has an ITIN, but the child has a Social Security Number, can the CTC be claimed?

I know for the EIC, everyone needs to have a social (correct me if I am wrong). In addition, if they are not able to get the CTC, then they could qualify for the "other dependent credit" for $500?

Thank you all, I'm new here, and I'm sure I will be posting frequent since this is my first time. If there are any other taxbook products that you guys think my help to find answer online asap, please let me know. Thanks all!

M.

[jmcdtax]

I would suggest you go to the IRS.gov website and download 2018 1040 Instructions and 2018 Publication 17 and Pub 5307, which help explains the changes, for starters and rely on the TaxBook as well.

[mvp2885]

I would suggest you go to the IRS.gov website and download 2018 1040 Instructions and 2018 Publication 17 and Pub 5307, which help explains the changes, for starters and rely on the TaxBook as well.

Thanks! Checking them out now.

[TaxGuyBill]

- Per my understanding, prior to 2018, children with ITINs could be used for the Child Tax Credit, but not anymore?
-If a parent has an ITIN, but the child has a Social Security Number, can the CTC be claimed?

I know for the EIC, everyone needs to have a social (correct me if I am wrong). In addition, if they are not able to get the CTC, then they could qualify for the "other dependent credit" for $500?

Yes, the child needs a SSN to get the $2000 Child Tax Credit. It does not matter what the parent has for purposes of the Child Tax Credit.

The $500 credit is allowed for an ITIN *IF* the child is a Citizen, National, or Resident of the United States. In other words, although you can claim a dependent if the dependent is a Citizen/Resident of Mexico or Canada, the $500 credit does not apply unless they are also a Citizen/Resident of the US.

[Lion]

And, TTB has a TCJA Supplement -- get the WInter Edition.

[mvp2885]

Yes, the child needs a SSN to get the $2000 Child Tax Credit. It does not matter what the parent has for purposes of the Child Tax Credit.

The $500 credit is allowed for an ITIN *IF* the child is a Citizen, National, or Resident of the United States. In other words, although you can claim a dependent if the dependent is a Citizen/Resident of Mexico or Canada, the $500 credit does not apply unless they are also a Citizen/Resident of the US.

Thanks for the valuable information. In regards to the $500 credit, if they are not a green card holder, but they do meet the substantial presence test (including children), then it would be possible to get the credit?

[mvp2885]

And, TTB has a TCJA Supplement -- get the WInter Edition.

Thanks, ordered it!

[TaxGuyBill]

Thanks for the valuable information. In regards to the $500 credit, if they are not a green card holder, but they do meet the substantial presence test (including children), then it would be possible to get the credit?

Yes. If the child meets the Substantial Presence Test, they are a "Resident" of the US and would qualify for the $500 credit.

Just keep in mind that the $500 credit is non-refundable, so the credit is limited to the amount of income tax on Line 11 of their 1040.

[Lion]

Since you're asking about ITINs and such topics, a great book is Jean Mammen's "1040NR? or 1040? U.S.Income Tax Returns for Visa Holders" available in paperback via Amazon. Get the latest edition -- which I think is the 7th -- so you'll have Jean's explanation after the TCJA.

[mvp2885]

Since you're asking about ITINs and such topics, a great book is Jean Mammen's "1040NR? or 1040? U.S.Income Tax Returns for Visa Holders" available in paperback via Amazon. Get the latest edition -- which I think is the 7th -- so you'll have Jean's explanation after the TCJA.

Thanks I appreciate it! I will def. look into that book as well.