W-7 non-US spouse, paper return, child tax credit problem

Forum|Forum|2 years ago
June 23, 2024
1 reply
7 views

US taxpayer marries non-US citizen nor Green Card holder, family living overseas and have a child. Have the W-7 and supporting paperwork to add to the paper return but can't get the return to generate the child tax credit without a SS# or ITIN. Actually generated an ITIN with the correct numbers to not give an error to check that the return gives the child tax credit as it should. How can I get the return to give the child tax credit with no SS# or ITIN? Thanks in advance!

Lacerte Tax

This topic has been closed for replies.

Best answer by Taxprohere

Since the return has to be paper mailed, override form 8812 and resulting line entries to produce the proper results. Don't let the software get in the way! Though the IRS will adjust for the spouse's ITIN when accepted, I believe they won't re-calculate for the child tax credit.

T

TitoBonsai

Level 4

It is not a tax software issue. To claim child tax credit, the qualifying child must have a SSN – see Form 8812, Part 1, line 4. I suggest you amend the return at a future point when the child meets the requirement. For now, file it without the credit.

J

jharvey

Level 5

According to the Schedule 8812 instructions:

"If you apply for an ITIN on or before the due date of your 2023 return (including extensions) and the IRS issues you an ITIN as a result of the application, the IRS will consider your ITIN as issued on or before the due date of your return."

This scenario is handled in the Lacerte program by going into the Dependent screen and making an entry in "Child Tax Credit" of "Applied for ITIN/ATIN".

If the taxpayer or spouse applied for an ITIN, then go into the Child Tax Credits screen and make an entry "Allow child tax credit(s) with applied for ITIN: 1=taxpayer, 2=spouse, 3=both".

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