What is an ITIN?
An ITIN, or Individual Taxpayer Identification Number, is a tax processing number issued by the Internal Revenue Service (IRS) for individuals who are not eligible to obtain a Social Security Number (SSN). Think of it as your key to the U.S. tax system if you're a non-resident or someone who doesn’t have a valid SSN.
Non-Resident Alien — Why Do They Need ITIN?
An ITIN is essential for those non-resident aliens that have some tax-related or financial activities in the United States. Without one, it's like entering a building without a key; it's in effect not permitted. An ITIN allows a non-resident to file taxes and claim tax treaty benefits, thus allowing non-residents who cannot obtain a Social Security Number to open a bank account. An ITIN prevents individuals from doing such things as filing taxes, applying for tax benefits, bank accounts, and numerous other processes in the U.S. It prevents individuals from participating in vital legal and financial dealings.
Who Can Apply for an ITIN?
Not everyone can get an ITIN, and not everyone needs one. ITINs are typically for non-resident aliens who are required to file a U.S. tax return, U.S. resident aliens under certain conditions, dependents or spouses of U.S. citizens or residents, and non-residents who need to claim treaty benefits.
How to Apply for an ITIN?
As a Certified Acceptance Agent (CAA), we simplify the ITIN application process for you. We assist in accurately completing Form W-7, authenticate your supporting documents (so you don’t need to send originals to the IRS), and submit your application directly to the IRS. With our expertise, you can ensure a smooth, secure, and hassle-free ITIN application experience.
Documents Required for ITIN?
In order to apply for an ITIN properly, you have to send a completed Form W-7 with identification and foreign status documentation. This normally involves a passport, foreign driving license, or national identity card. If you don't have them, the application is incomplete.
Application Mistakes to Avoid
The Difference is in the (Limited) Details The trick to receiving an ITIN lies behind the intricacies. Common errors are incorrect facts, providing the wrong paperwork, or forgetting to signal your application. These mistakes might take weeks to solve and, in worst-case scenario make your application dismissed.
How long will it take to receive an ITIN?
You will need ITIN patience. Once the IRS receives your completed application, it takes about 7 weeks to get an ITIN This process may be longer depending on the time of year (tax season) or if you made a mistake when submitting your application.
How to Use Your ITIN
Once you receive ITIN, time to use it. This number is used mainly for reporting taxes. You will use it on your U.S. tax return, and to be an individual in the U.S. taxing system It can also be used to open a bank account in the US or get a mortgage — but keep in mind, it is not an official work permit.
Renewing Your ITIN
ITINs don't last forever. They are required to be renewed every five years or if they have not been used in a three-consecutive-year time period on a tax return. All you do for the renewal is fill out a new Form W-7 (IRS e-file application) with updated identification documents.
What is the difference between an ITIN and a Social Security Number (SSN)?
At first glance, they appear nearly identical, but an ITIN is not the same thing as an SSN. Though both numbers are tax reporting identifiers, an SSN applied to Social Security benefits and working in the U.S. Unlike an SSN, An ITIN means you are not allowed to work or live in the USA using this number, it is simply for tax purposes.
Limitations of an ITIN
Though ITIN is required in a few cases, it has its own limitations For example, it does not give you the right to work in the U.S., Social Security benefits, or an Earned Income Tax Credit (EITC). With the purpose of tax identification and financial only.
Obtain a job in the US with an ITIN.
A common myth is that with an ITIN you can work in the United States. This is not the case. An ITIN is not a work permit. So if you're intending to work legally in the U.S. that means you will need either a valid working visa or an SSN (which makes things A LOT quicker than getting Visa for free).
Implications Of ITIN For Your Tax Returns
ITIN is required to file a U.S. tax return and if any US-based income is received that require you to report on your taxes with the IRS. Having an ITIN also allows you to claim tax treaty benefits, lowering your taxable amount.
What Happens If You Don't Have an ITIN
What if you need an ITIN and do not have one? You can't file a U.S. tax return without an ITIN, take advantage of treaty benefits, or even open a US bank account! Those are the reasons you need to escape consentaneously at all costs because leaving without doing so can land you in a messy financial situation with various penalties and legal problems.
