Non-citizen ITIN question

[ShoeBox Taxes]

If a taxpayer has a child with an ITIN, they are eligible for the CTC, but not for the ACTC.

If a client is applying for an ITIN for that child, the SSN field remains blank. However, the return should still process as if the child has the ITIN. In other words, they need to get the CTC (not ODC), but not the ACTC.

How do we get the software to do this correctly?

[Terry53029 · Accepted solution]

No, you may not claim the child tax credit for a child with an ITIN. The child must have an SSN to be a qualifying child eligible for the child tax credit (CTC) or the additional child tax credit (ACTC).

See link: https://www.irs.gov/faqs/childcare-credit-other-credits/child-tax-credit#:~:text=No%2C%20you%20may%2...).

[ShoeBox Taxes]

How weird, I was looking through the IRS website last night, and I swear I saw something that said you could get the CTC but not the ACTC for a kid with an ITIN. Now that I look closer, I think I misread -- the parents can have an ITIN but the kid has to have a SSN, is that right?

[TaxGuyBill]

They still qualify for the $500 "other dependent" credit.

In answer to your question, the last I checked, you need to enter a 'fake' number, then use white-out on the printed tax return (it needs to be mailed anyways, right, because they are applying for an ITIN?).