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Maximize Your Tax Benefits: How ITIN Holders Can Claim Credits and Stimulus Payments

The IRS issues ITINs for individuals without SSNs who need a taxpayer ID for filing taxes. It is used to identify dependents and spouses without SSNs, according to an article by Washington University in St. Louis.

ITIN holders can claim certain tax credits such as Child Tax Credit, which is only eligible for children with SSN. To claim this credit, both the ITIN and SSN of the child is required. If your ITIN has expired, you can still claim the enhanced CTC by renewing it through Form W-7, which may take 11 weeks.

Families may also be eligible for a $500 non-refundable credit for other dependents, including ITIN-holding children over 17 and tax-dependent relatives like parents, which can only reduce taxes. Unmarried individuals may also claim Head of Household status by claiming a dependent to lower income taxes.

You can claim the 3rd stimulus payment as the Recovery Rebate Credit on your 2021 taxes if not received. Eligibility for $1,400 per household member with SSN. ITIN-holding parents can claim stimulus for children with SSNs.

The Child and Dependent Care Credit provides a tax benefit for care expenses related to work or job search. In 2021 it’s fully refundable and the max credit is $4,000 for one dependent, $8,000 for two or more.

The American Opportunity Tax Credit is a $2,500 credit for lower college tuition for degree-seeking students in the first four years of post-secondary education, and the Lifetime Learning Credit is a $2,000 credit for all students for post-secondary education and job training.

Form W-7, identification, tax return, and foreign status documents are required to file taxes without SSN. Original or certified copies from issuing authorities are necessary. Minors require a parent/guardian signature, adult dependents and spouses must sign Form W-7.

 

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