3rd stimulus - Taxpayer with ITIN, dependents with SSN ... are they eligible?

[giogis245]

I am constantly looking for updates on this. I do not think they are but the news is saying yes and clients are going desperate.  

[Lion EA]

Yes, the ones with SSNs. So, your taxpayer will get $1,400 for each dependent with a SSN but nothing for him/herself with an ITIN.

For previous EIPs, a taxpayer with an ITIN would disqualify the whole family. If married couple where one had SSN, could file MFS with the kids with SSNs with the parent with a SSN and file the ITIN parent MFS by him/herself. Now, you don't have to play games.

[Lee B]

My understanding is that one spouse has to have a valid SSN. There are some additional more unusual  ways to qualify.

[Lion EA]

cbslee is right. I haven't had a Single or HOH ITIN holder (no spouse on return) with kids, so hadn't remembered that correctly. There has to be one spouse on the return with an SSN, but other spouse can have an ITIN; then SSN spouse and all kids with SSNs get EIP/RRC. If they'd been disqualified from EIP1, then they now can get RRC1. So, giogis' situation will get no EIP and no RRC.

[giogis245]

I have not had a single ITIN taxpayer client receive it either... 

[Pacun]

Yes, you are correct. There MUST be one of the taxpayers with social security number for the return to be unsealed and once unsealed, the dependents come to play.

 

[Lion EA]

That's a great way to phrase it, Pacun.

[Lee B]

1 hour ago, cbslee said:

My understanding is that one spouse has to have a valid SSN. There are some additional more unusual  ways to qualify.

I actually have a client I will be working on soon who falls into this category, 1 spouse with valid SSN, 1 spouse with ITIN, 2 children  with valid SSN, 1 15 & 1 18.

[Pacun]

3 minutes ago, cbslee said:

I actually have a client I will be working on soon who falls into this category, 1 spouse with valid SSN, 1 spouse with ITIN, 2 children  with valid SSN, 1 15 & 1 18.

Your client will get $4,200 on the third stimulus after you file 2020 or after the IRS gets the info from 2019.

[ILLMAS]

I filed a HOH with an ITIN, child has a SSN, so by the parent not having a SSN this disqualifies their child, and are not entitled to the $500 and $600?  I missed this, I filed my clients return like the first week of the filing season.

[Pacun]

ILLMAS, that's correct... no stimulus for this HOH.

If you answer the questions correctly for line 30, it should not populate any dollars amount for the two stimulus.

[TexTaxToo]

For EIP1 and EIP2 it is clear from reading the law that at least one parent (and the child) must have an SSN.  (Actually, the CARES Act said that both parents on a joint return must have an SSN, but this was changed to one parent in December when EIP2 was passed.)

The ARPA for the third stimulus has different language, and my reading is that all dependents with an SSN qualify even if no parent (taxpayer) has an SSN.  And I saw a migrant advocacy group saying that.

However, the IRS says they will only send EIP3 if at least one taxpayer has an SSN (same as EIP1 and EIP2):

https://www.irs.gov/newsroom/updated-details-about-the-third-round-of-economic-impact-payments

So I'm waiting to see how this plays out.

[Lee B]

I saw that too perhaps on the same site, but I haven't seen anything to confirm it.

[Pacun]

I think that congress required that EIPs were to be issued only to social security numbers, no ITINs, hence the need for one of the parents to have a SS number.

[Lion EA]

So, I DID remember it correctly, at least at one time, before "clarifications" and other interpretations! Probably read/heard it in an ARPA class shortly after the bill was signed.

[TexTaxToo]

The IRS has now updated their FAQs to say that taxpayers with ITINs can indeed receive EIP3 for any dependents with SSNs:

https://www.irs.gov/newsroom/questions-and-answers-about-the-third-economic-impact-payment-topic-b-eligibility-and-calculation-of-the-third-payment

The last question:

Quote

I don’t have a valid SSN, but I have a qualified dependent that does. Will I get the third Economic Impact Payment for them? (added March 30, 2021)

You can still receive up to $1,400 for a qualified dependent claimed on your return, even if you do not have a valid SSN, but you must meet all of the other eligibility and income requirements.

For example, if you file as head of household and your adjusted gross income is over $120,000 you would not qualify for any payment for you or your qualified dependent. If your income was under $120,000, you are a U.S. resident alien and not a dependent on another taxpayers 2020 return, you will not receive a $1,400 for yourself, but you may still receive up to $1,400 for a dependent you claimed on your return, if they have a valid SSN and meet all of the qualified dependent requirements.