I am not going to file US tax returns. Do I still need ITIN number?

Question

I live in India and possess Indian passport. I recently adopted a 7 year old girl who is US citizen. She receives a subsidy of $500 a month because she is special needs girl. An interest bearing bank account in US has been opened in her name and me as a custodian jointly. Is it necessary to obtain ITIN in my name?

Answer 1

It is likely that you will need to obtain an ITIN in order to avoid backup withholding. If the bank is asking for one, I would go ahead and obtain one.

I never have understood the resistance of foreigners to obtaining an ITIN. It doesn't give the IRS any greater power over you than it has without one. And it may save you time, trouble and money.

I note that you said you have an Indian passport, but you did not say whether you also have a US passport. However, I assume that you do not.

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New comment: There is a 43-year-old revenue ruling which indicates that the proper number to furnish with respect to a custodian account is the child's number. As far as I can tell this is still the rule. However, if the bank insists on having an ITIN from you, it might be easier just to obtain one.

Answer 2

No. This income is the child's not yours. The income would be taxable to her not you. Unless you let the balance build up substantially, or she has other income, she would not owe tax or need to file. She would be allowed to earn 850 before any tax would be due. The subsidy itself is not considered income, only the interest it earns.

Answer 3

If the girl is a US citizen then she will most likely have a social security number from birth. That is all she needs, and should make it unneccesary for you to jump through any hoops.

Answer 4

Probably not. If the account has the child's SS# on it.