tax

Taxes 2022: what are the tax credits you can claim if you have an ITIN

tax

Tax season already started this January 23 and taxpayers with an Individual Taxpayer Identification Number (ITIN) should know how they can claim some tax credits to receive a tax refund
Nonresident foreign workers must file taxes in the United States using their Personal Taxpayer Identification Number (ITIN). Usually, if the person does not have a Social Security number, they cannot claim the tax credits. However, there are some specifications that would allow ITIN taxpayers to claim any of the following tax credits.

This Monday, January 23, the Internal Revenue Service (IRS) officially begins the 2023 tax season to file returns for the 2022 tax year. As mentioned on other occasions, if you plan to claim any of the refundable tax credits that you We will say below and you want to receive your money quickly, we recommend that you be one of the first to process your return.

Here are some of the tax credits you can claim this tax season with your ITIN:

1. Child Tax Credit (CTC)
A taxpayer with an ITIN can claim the Child Tax Credit (CTC) only if the child or dependent minor has a valid Social Security number for employment.

“The eligible child must have a valid Social Security number as of the date the return is filed, including extensions,” the IRS notes.

Taxpayers should be aware that the CTC for tax year 2022 returned to its pre-pandemic statutory level of $2,000 per eligible child. In other words, forget about the huge amounts of $3,000 and $3,600 that were awarded in 2021.

It is important that you claim the credit only if your child qualifies, because “if a taxpayer claims the Child Tax Credit or the Additional Child Tax Credit, but is not eligible, they may be barred from claiming this credit for two or 10 years.” , notes the IRS.

2. Credit for Other Dependents
This alternative credit to the Child Tax Credit is a non-refundable credit that can help you reduce your tax bill by up to $500. The advantage of this credit is that you can claim it even if your dependent is of legal age, such as an elderly parent, although he must be a citizen or resident of the country.
To qualify, the dependent must have a valid identification number, either a Social Security number or ITIN.

3. Child or Dependent Care Tax Credit
Like the CTC, the Child or Dependent Care Tax Credit returns to pre-pandemic levels. Up to $3,000 can be claimed for the care of one child or dependent who is unable to care for themselves and up to $6,000 for two or more qualifying children or dependents.

This credit can be claimed for dependents who have a Social Security number and even an ITIN number. To claim it, you must submit form 2441 that bears the name Expenses in the Care of Children or Dependents or Child and Dependent Care Expenses in English, along with the tax return.
If the dependent does not have an ITIN, they must apply for one to claim this credit, using Form W-7: Application for an IRS Individual Taxpayer Identification Number.

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