Ask Experts Questions for FREE Help !
Ask
    ajaykgarg's Avatar
    ajaykgarg Posts: 5, Reputation: 1
    New Member
    		  
    #1

    Sep 7, 2013, 08:20 AM
    First-Year choice for child only, not me
    Hello

    I am a resident alien, working on an L-1 visa.
    My child was born in India in 2012 and came to US on Nov 8.

    He cannot get SSN as he is on L-2 visa and a minor.

    I am applying for his ITIN.
    He does not meet substantial presence test.

    Can I make first-year choice for him, even if it is not applicable for me and my wife?

    Thanks
    Ajay
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Sep 7, 2013, 09:38 AM
    Ajay,

    Yes, the First Year Choice criteria applies to your child, which means you needed to wait until late June 2013 before filing.

    Since it is September, you need to apply for the ITIN for your child with the tax return. The best way to do that is through a Tax Assistance Center that verifies passports as authentic.

    Email me if you need further advice or professional help filing.
    ajaykgarg's Avatar
    ajaykgarg Posts: 5, Reputation: 1
    New Member
    		  
    #3

    Sep 8, 2013, 08:22 AM
    Thanks, AtlantaTaxExpert.

    Is there a standard form for first-year choice, or do I just have to write a letter?

    Who should the letter be addresssed to?

    Thanks
    Ajay
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Sep 8, 2013, 05:53 PM
    The First Year Choice statement is not required for the child.

    Just submit the Form W-7 with the tax return.
    ajaykgarg's Avatar
    ajaykgarg Posts: 5, Reputation: 1
    New Member
    		  
    #5

    Sep 9, 2013, 08:32 AM
    Quote Originally Posted by AtlantaTaxExpert View Post
    The First Year Choice statement is not required for the child.

    Just submit the Form W-7 with the tax return.
    I went to IRS on Fri. They said they won't give them ITIN as he doesn't pass substantial presence test.

    So, I was planning to go back to them with a First Year Choice statement.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #6

    Sep 9, 2013, 10:30 AM
    Ajay,

    For the 2012 tax return, I HAVE submitted ITIN requests for children who did not meet the Substantial Presence Test (SPT) in 2012, but subsequently met SPT in 2013, and those children were issued ITINs and the parents could claim them as dependents.

    However, there is NO written guidance on whether this is legal or not, so I called the IRS and asked for guidance. That is when I found out that there is NO written guidance, so the IRS has referred the issue to their Tax Law department, who will research the issue and send me a definitive ruling as to whether First Year Choice applies to children as well as workers and spouses.

    I have a reference number, and, per the IRS telephone representative, I should get an answer via email by sometime next week.

    If you email me (my email address is in my profile if you do not see it below), I will forward to you the answer when I get it. If it comes back that you CAN get your child an ITIN and claim him as a dependent, you can use the email as proof when you go back to the IRS Tax Assistance Center.
    ajaykgarg's Avatar
    ajaykgarg Posts: 5, Reputation: 1
    New Member
    		  
    #7

    Sep 9, 2013, 10:46 AM
    Wow! Thanks for doing that!
    I am sending you my mail id separately.

    Thanks
    Ajay
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #8

    Sep 9, 2013, 01:03 PM
    No problem; I will use the email in my CAA and tax business as reference material.

    I await your email.
    ajaykgarg's Avatar
    ajaykgarg Posts: 5, Reputation: 1
    New Member
    		  
    #9

    Sep 17, 2013, 01:45 PM
    Hello

    Do you know by when will IRS get back to you?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #10

    Sep 17, 2013, 01:56 PM
    The IRS WILL send an answer eventually, but exactly HOW LONG it will take is anyone's guess.
    taxesforaliens's Avatar
    taxesforaliens Posts: 649, Reputation: 117
    Senior Member
    		  
    #11

    Feb 18, 2014, 10:18 AM
    Hi ATE,
    Did you get an answer from the IRS? I would be interested in that too.

    Thanks
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #12

    Feb 18, 2014, 07:54 PM
    Yes, the IRS DOES apply the First Year Choice standards for Substantial Presence Test for children as well as adults, which means tax returns may have to be delayed until the child meets the Substantial Presence Test under First Year Choice in order to be claimed as a dependent.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

First Year Choice [ 1 Answers ]

Hi, I have a question about making the first year choice for H1B. My wife and I came to the US from India on 7th July 2011 (I am on H1 and she is on H4), so we are non-resident for tax. I filed 1040NR-EZ and got my refund. Can I amend this by having the First Year Choice to be treated as...

First year choice, residents choice [ 5 Answers ]

I saw a similar question, but since my situation is a little different, I would like to be sure please. I was on H1-B from 2005 to February 2008. I then switched to F1 and was on F1 until end September 2009, when I went back to H1-B. Under substantial presence test, I was a resident for 2008...

First Year Choice for dependet child [ 3 Answers ]

I am J1 scholar who entered US in 2006. My husband is with J2 visa who entered US in 2006. My son is with J2 who entered US in 2007. All of us stayed in US for the whole year of 2008. My husband and I will file jointly using form 1040. My question is whether I can make first year...

L1 under first year choice and child tax credit [ 1 Answers ]

Hi DallasTaxExpert, My kid (2.5 yrs), wife and I came to the US (Dallas) in Aug 2007 on L2, L2 and L1 respectively. I have applied EAD in january08 for my wife and I'll get EAD in couple of months and thereafter I'll go for her SSN. I'll ITIN for my kid when I file returns. My question...

What is First Year Choice [ 1 Answers ]

Atlanta Tax Expert, Thank you for your assistance. Since my wife's employer didn't withheld her Social Security and Medicare tax because they think she should be exempted from those two taxes, how can she file on her tax form about this? Does she need to pay the penalty? BTW, what's...

View more questions Search