Recovery Rebate Credit Worksheet for ITIN holders

[Joe75]

Hello, I was looking at the Recovery Credit Worksheet and it asks if both taxpayers have a SS, my question is how about those returns with both taxpayers with ITIN and have dependents that have a SS, will they receive any credit if they didn't receive the stimulus payments and if so how will we fill out the Recovery Credit Worksheet?

[ShoeBox Taxes · Accepted solution]

If both taxpayers have ITINs, they will not receive anything on the first payment (nor will they be eligible for anything).

My understanding of the 2nd payment is that if they have eligible children (i.e. child with a valid SSN under age 17 who lived with them in the US -- NOT IN MEXICO) they will get the $600 for the child, but not for themselves.

Anything regarding the 3rd payment is pure speculation, as it isn't even being discussed in congress yet, let alone written and voted on. 

I've just looked, and the worksheet does NOT calculate this correctly. If you enter an ITIN, it still calculates as if they get the payment. So you must over-ride the entry and show that they should NOT get this as a refundable credit.

[Joe75]

Thank you very much Singing Tax Lady, so we over-ride the worksheet to were it ONLY calculates the second payment if they have eligible children? Will the software allow us to file even though forms have an over-ride?

[ShoeBox Taxes]

I need to correct myself.

You don't need to over-write the line to make it $0. Just answer the question further up on the worksheet, where it says "Does the taxpayer (and spouse if filing jointly) have a valid SSN...." Make sure that's checked "No." Then it calculates correctly.

No over-ride required.

[ShoeBox Taxes]

And yes, you can always file with an over-ride ... just be aware of it, and make sure you have good notes in your files, so that if something comes back.....

That's one thing I like about the Pro-Series software, is that you CAN efile even with an over-write. It makes you work for it (which is a good thing) but it is possible.

[ShoeBox Taxes]

Also, Joe, if you ever have questions about ITINs, if you're unable to get answers on the website and stuff, feel free to email me at admin at shoeboxpdx.com. I've probably processed 300 ITINs in my career, and all but 2 of them have been accepted.

[Joe75]

Awesome, thanks for your feedback and replies. I will definitely email you if anything comes up about ITINs. Have a great weekend.