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

[Drphibes]

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!

[TitoBonsai]

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.

[jharvey]

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".

[Drphibes]

The W-7 is for an ITIN for the Spouse.  The child already has a SS#.  If I leave the spouses SS# section blank, the program will not generate the child tax credit it is supposed to.  Sorry if the title was not clear.

[Taxprohere · Accepted solution]

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.

[Drphibes]

Thanks a bunch!

I actually found an obscure box in the Child Tax Credit area that addresses this very issue.  Must have overlooked it when I first looked at the credit screen!