Question

Expired ITIN in 2019 and ways to fix it

Forum|Forum|5 years ago
March 14, 2021
1 reply
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Hi,

For both my kids, their ITIN expired in 2020. I submitted their W7 for renewal in 2020 before I submitted my 2019 Tax return. Due to COVID, IRS had a huge delay in processing and by the time I submitted my Tax return for 2019, the ITINs were not renewed. So, IRS slapped me additional tax as they disallowed some child and dependent care credits due to the expired ITINs. My reported gross income was considered higher than I submitted in my 2019 return due to that.

I paid that additional tax in time. I also received less stimulus check as my reported income was higher due to that.

Both the ITINs got renewed in late 2019.

Is there a way to fix it this year as both the ITINs got renewed? If yes, how?

E

ErnieS0

Are you asking for 2019 or 2020? If your ITIN’s were renewed in late 2019 then everything should be fine with your 2020 income tax return. You should have received a CP-565 letter confirming that your children’s ITINs have been renewed.

The 2020 income tax return includes a Recovery Rebate Credit worksheet. Any stimulus that you did not receive, but were eligible for, will be added to your 2020 return as a “refund”. The stimulus were advanced payments based on 2020 tax information so it’s possible you situation may be different in 2020 than it was in 2019.

Your children are not eligible for stimulus payments. Generally, if you were a U.S. citizen or U.S. resident alien in 2020, were not a dependent of another taxpayer and have a Social Security number that is valid for employment, you are eligible for the Recovery Rebate Credit.

The IRS said it will reconsider any exemptions and/or credits previously disallowed once an ITIN is renewed. You should contact the IRS about getting your previously denied child and dependent care credits. Call the number on your CP-565 or 1-800-829-1040.

Related Resource:

ITIN Expiration Frequently Asked Questions

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