Can a Taxpayer With an Itin Qualify for a Child Tax Credit 2018
Editor's Note: Fifty-fifty if you don't have a Social Security number, yous may be required to file a U.S. tax return. To do that, you need an Private Taxpayer Identification Number (ITIN). There is some confusion about what ITIN filers are allowed to claim, or not, including the Child Tax Credit . Read on to learn more about ITIN and the Child Tax Credit.
Who Needs a Revenue enhancement ID Number, Or ITIN Number?
Many people from foreign countries are required to file U.S. tax returns due to claiming income in the U.S., only may not qualify for a Social Security number. Since an identification number is required to file a tax return, the alternative for these individuals is anPrivate Taxpayer Identification Number, or ITIN. The IRS will also event ITINs to dependents who tin can exist claimed on a tax return just do non authorize for Social Security numbers.
ITIN vs. SSN
SSNs belong to U.S. citizens and authorized residents, while an ITIN is a taxation number issued by the IRS for sure individuals who are not eligible for an SSN, simply are required to file certain federal tax returns.
An ITIN and SSN both follow a nine-digit format – like this: Thirty-XXX-XXXX. ITINs can be hands identified because they e'er begin with the number 9.
Tax Benefits You Tin can Claim With an ITIN
In that location are some common misunderstandings effectually what tax benefits y'all can claim when y'all file with an ITIN.
An ITIN filer tin't claim theEarned Income Tax Credit, which specifically requires a Social Security number. Similarly, whatsoever children using an ITIN instead of a Social Security number can't be taken into account when an otherwise qualified individual claims the credit.
ITIN Limitations Around Dependent Credits
This limitation doesn't apply to the Child Tax Credit (CTC) or the Additional Child Tax Credit (ACTC). And then, ITIN filers can't merits the EITC, but they tin can claim the CTC or the ACTC. Yet, there are still requirements that must be met. To claim these CTC or the ACTC, your child (or children) must:
-
- Live in your domicile for over half the year (limited exceptions to this rule use)
- Be your child, stepchild, adopted child, or foster kid, or your brother or sister or stepsibling (or a descendant of any of these)
- Be nether 17 years old at the shut of the year
- Not provide over half of his or her ain support for the year
- Be a U.Southward. citizen or resident
- Have an SSN issued to them by the due date of the return, and
- Not file a joint return (with exceptions).
Tax Reform Requires SSN for CTC and ACTC Qualifying Children
Ane of the changes with revenue enhancement reform is that children are now required to take an SSN by the due date of their render to be qualifying children for the CTC and the ACTC. This rule is constructive for revenue enhancement years 2022 through 2025.
Before 2018, children with ITINs could qualify taxpayers for the CTC and ACTC but but if they had an ITIN past the due date of their render for that revenue enhancement year.
New Other Dependent Credit Available for ITIN Holders
The TCJA added the new Other Dependent Credit (ODC) which is a $500 credit for each dependent who doesn't qualify for the CTC. This means a taxpayer can claim the ODC for a dependent who meets all the rules to exist a qualifying child for the CTC except for the SSN requirement.
Children Who Live Outside the U.S. Can exist Qualifying Children
A child with an ITIN that lives in the U.South. can qualify for the ODC, and children with ITINs that live exterior of the U.S. mostly will not qualify. Children that live outside the United states generally can qualify for the CTC if they live in your habitation for more than than half of the yr and encounter the other requirements, including the SSN requirement.
U.S. citizens volition almost e'er have SSNs and therefore authorize for the CTC regardless of where they live so long as they meet the other tests. Also, annotation that special rules apply to children of divorced and separated parents.
Need more data on ITINs? Check out these links:
- ITIN Application
- ITIN Renewal Process
For assist with ITINs and tax credits like the Child Tax Credit, find yourH&R Cake Tax Office today.
Source: https://www.hrblock.com/tax-center/filing/credits/itin-child-tax-credit/
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