Can I Claim an ITIN Dependent Exemption?

An Individual Taxpayer Identification Number (ITIN) is a tax processing number issued by the Internal Revenue Service (IRS) for certain resident and nonresident aliens, their spouses, and dependents who cannot get a Social Security Number (SSN). Its purpose is for federal tax reporting only. While tax law changes eliminated the deduction for personal exemptions, taxpayers can still claim dependents with an ITIN to qualify for other tax benefits. This process involves confirming your dependent meets specific criteria and knowing which tax credits are available.

Qualifying as a Dependent for Tax Purposes

Before considering any tax credits, an individual must first be classified as either a “Qualifying Child” or a “Qualifying Relative” under IRS rules. For a person to be your Qualifying Child, they must pass four distinct tests. The dependent must also be a U.S. citizen, U.S. national, U.S. resident, or a resident of Canada or Mexico.

A person is your Qualifying Child if they meet all of the following conditions:

• Relationship: The child must be your son, daughter, stepchild, foster child, sibling, or a descendant of any of them, such as a grandchild.
• Age: The child must be under age 19 at the end of the tax year, or under age 24 if they are a full-time student for at least five months of the year.
• Residency: The child must have lived with you for more than half of the year.
• Support: The child cannot have provided more than half of their own financial support during the year.

If a person does not meet the criteria to be a Qualifying Child, they might still be your dependent as a “Qualifying Relative.” This category also has four tests that must be met.

A person is your Qualifying Relative if they meet all of the following conditions:

• Not a Qualifying Child: The person cannot be your qualifying child or the qualifying child of any other taxpayer.
• Gross Income: The person’s income must be below a certain threshold for the year; for tax year 2025, this amount is $5,200.
• Support: You must provide more than half of the person’s total support for the year.
• Relationship or Household: The person must either live with you all year as a member of your household or be related to you in one of the ways specified by the IRS, which includes parents, grandparents, and in-laws.

Tax Credits Available for Dependents with an ITIN

The primary tax benefit available for a dependent who has an ITIN is the Credit for Other Dependents (ODC). This is a nonrefundable credit, meaning it can reduce your tax liability to zero, but you cannot get any of it back as a refund beyond that. The ODC is valued at $500 for each qualifying dependent. To claim this credit, the dependent must meet one of the dependency tests and must have an ITIN, Adoption Taxpayer Identification Number (ATIN), or SSN.

This credit provides tax relief for families who support dependents that do not meet the strict requirements of other credits. This includes children who are too old for the Child Tax Credit, such as a 19-year-old college student, or dependent parents and other relatives. The taxpayer and their spouse, if filing jointly, can have either an SSN or an ITIN to claim the ODC.

A point of importance is the distinction between the ODC and the Child Tax Credit (CTC). To claim the much larger CTC, which is worth up to $2,000 per child and is partially refundable, the dependent child must have a Social Security Number that is valid for employment. An ITIN does not satisfy this requirement.

This rule is a frequent source of confusion for taxpayers with non-citizen children. If your child has an ITIN, you cannot claim the Child Tax Credit or the refundable portion, known as the Additional Child Tax Credit (ACTC), for that child. Your benefit is limited to the $500 Credit for Other Dependents.

Obtaining or Renewing an ITIN for a Dependent

If you have a dependent who qualifies for a tax benefit but does not have a taxpayer identification number, you must apply for an ITIN for them. This is done using Form W-7, Application for IRS Individual Taxpayer Identification Number. The application requires providing documentation that proves the dependent’s foreign status and identity. The IRS requires original documents or certified copies from the issuing agency.

A valid foreign passport is the most straightforward document to provide, as it proves both identity and foreign status on its own. If a passport is not available, you must submit a combination of at least two other documents. Acceptable documents to prove foreign status include a U.S. visa or a national identity card. To prove identity, you can use documents like a foreign driver’s license, a civil birth certificate, or a foreign voter registration card.

When completing Form W-7 for a dependent, you must check the box indicating the reason for applying. For a dependent, you would check the box for “Dependent of a U.S. citizen/resident alien” or “Dependent of a nonresident alien,” depending on your own tax status. A parent or guardian can sign the Form W-7 for a dependent under the age of 18.

It is also important to know that some ITINs expire. If your dependent’s ITIN was issued before 2013 or has not been used on a tax return for three consecutive years, it may need to be renewed. The renewal process also uses Form W-7 and requires the same rigorous documentation. The application must be attached to a valid federal income tax return, unless the applicant meets one of the few exceptions.

How to Claim a Dependent with an ITIN on Your Tax Return

Once you have determined your dependent qualifies and they have a valid ITIN, the final step is to claim them on your annual tax return, Form 1040. The process takes place in the “Dependents” section on the first page of the form. Here, you will enter the dependent’s full name, their ITIN, and their relationship to you.

After entering the dependent’s personal information, you must indicate which tax credit you are claiming for them. There are separate columns on Form 1040 for the Child Tax Credit and the Credit for Other Dependents. You must check the box in the column for the “Credit for other dependents” next to the name of the dependent with an ITIN.

If you are applying for an ITIN for your dependent at the same time you are filing your taxes, the procedure is slightly different. You must attach the completed Form W-7, along with the original or certified supporting documents, to the front of your paper-filed Form 1040. In the space for the dependent’s Social Security number on Form 1040, you should write “W-7” or “Applied For.”

Filing electronically is not an option when a Form W-7 is being submitted for the first time. The requirement to mail original or certified documents with the tax return necessitates a paper filing. This combined submission ensures that the dependent is granted an ITIN and you receive the corresponding tax credit in a single process.