ITIN number: What is an ITIN? What is the ITIN application process?

What is an ITIN?

In the landscape of taxes and identification in the United States, there is a unique identifier known as an Individual Taxpayer Identification Number, commonly abbreviated as ITIN. ITINs are nine-digit numbers issued by the IRS to people who need a taxpayer identification number for tax purposes, but are ineligible for a Social Security number (SSN).

ITINs play a crucial role in the tax system, enabling people who aren’t eligible for an SSN, such as non-resident aliens, dependents, or spouses of U.S. citizens or residents, and others with federal tax reporting or filing requirements, to comply with tax laws.

Although ITINs resemble SSNs, they are specifically issued for tax-processing purposes and are not intended for personal identification purposes that aren’t tax related. Understanding the purpose and application process of an ITIN is essential for anyone ineligible for an SSN.

Keep reading to learn about the significance of ITINs, how to apply for one, and ITINs’ role in ensuring tax compliance for people who might otherwise face challenges filing their taxes in the United States.

Who needs to file Form W-7?

Non-resident aliens, people who are dependents or spouses of U.S. citizens or residents, and other people with federal tax-reporting or -filing requirements but who aren’t eligible for an SSN must file Form W-7 to apply for an ITIN.

What information is required on Form W-7?

• Personal information, such as name, date of birth, and mailing address.
• Reason for applying for an ITIN, along with supporting documentation as per the instructions provided with the form.
• Documents that establish your identity and foreign status, which may include your passport, birth certificate, or national identification card.

Once you’ve completed the form and gathered all required documentation, you can submit Form W-7 to the IRS with your tax return, or through an IRS-authorized Acceptance Agent or Certifying Acceptance Agent. It is crucial to follow the instructions provided by the IRS carefully to ensure that the application process is a smooth one.

After receiving Form W-7, the IRS will process the ITIN application first, then your tax return. The processing time is generally up to six weeks for the ITIN application, but may vary depending on different factors, like how complete and accurate your information is.

IRS Form W-7: Application for an ITIN

To get an ITIN, you must complete and submit IRS Form W-7, also known as the Application for IRS Individual Taxpayer Identification Number. This form serves as the official request for an ITIN, and it’s important to ensure you use accurate and complete information. This gives the IRS all the information it needs to verify your identity and determine your eligibility.

Is an ITIN equal to an SSN?

One common question that arises when discussing ITINs is whether they hold the same weight as SSNs. While both serve as identification numbers, there are distinct differences between an ITIN and an SSN that are important to understand.

Purpose

An SSN is primarily issued to U.S. citizens, permanent residents, and certain temporary residents. It serves as a unique identifier for individuals to access various government services, including Social Security benefits, employment, and tax reporting.

On the other hand, an ITIN is specifically designed for people who have tax-reporting or -filing requirements but are not eligible for an SSN. ITINs are issued solely for tax purposes and do not confer the same benefits or privileges as an SSN beyond tax-related matters.

Usage

While an SSN is used for many different aspects of life in the U.S., an ITIN is limited to tax-related activities. People with an ITIN can use it for filing tax returns, claiming certain tax benefits, and complying with IRS requirements. Taxpayers with an SSN are not eligible for an ITIN. However, they can request an Individual Protection Personal Identification Number (IP PIN) to protect their SSN and personal information associated with the number.

Legal status

Another significant distinction between an ITIN and an SSN lies in the legal status of the people holding these identification numbers. SSNs are typically assigned to people who have legal status in the U.S., such as citizens or lawful permanent residents. In contrast, people with ITINs may include certain non-resident aliens, people on temporary visas, and undocumented immigrants.

Can a non-citizen get an ITIN?

Yes. ITINs are specifically for non-citizens, including certain non-resident aliens, undocumented immigrants, dependents and spouses of citizens, and other people who aren’t eligible for an SSN but are still required to report and file federal taxes.

ITIN expiration: How to check if an ITIN is expired?

ITINs are not issued indefinitely. However, an ITIN will remain valid if it’s used to file a federal return at least once every three years. To ensure yours remains valid for tax purposes, it's essential to be aware of its expiration status and take necessary steps to renew it if needed.

ITIN renewal

If your ITIN has expired, or is about to expire, it's important to renew it to avoid disruptions in tax processing or refund delays. To renew an ITIN, you'll need to submit a renewal application (IRS Form W-7) along with the required documentation to verify your identity and foreign status for your tax return. The IRS will process your ITIN renewal application first, then your tax return.

What you’ll need to renew your ITIN

• A Form W-7 with complete and accurate information.
• Your tax return.
• Your passport, national ID card, or other proof of your identity and foreign status.
• Proof of foreign status and adoption papers or birth certificate if you’re a dependent.

If you're unsure about the expiration status of your ITIN, you can contact the IRS for assistance. The IRS has dedicated helplines and assistance centers to help taxpayers with ITIN-related queries and renewal processes.

Can you file taxes with an ITIN?

Yes. ITINs are specifically for tax-reporting and -filing purposes for people not eligible for SSNs. If you are a non-resident alien, undocumented immigrant, dependent or spouse of a citizen, or anyone else who is ineligible for an SSN but still have tax responsibilities, you should apply for an ITIN.

Additional benefits of an ITIN

While the primary purpose of an ITIN is for filing your federal tax return, obtaining an ITIN can also provide you with access to various benefits and opportunities.

• Access to tax benefits: With an ITIN, you can claim certain tax credits and deductions you’re eligible for. Taking advantage of applicable credits and deductions could mean you owe less in taxes and potentially get a bigger refund.
• Establishing credit history: ITINs are not directly linked to credit reporting agencies. However, some financial institutions may accept an ITIN as an alternative form of identification when applying for loans or credit cards.
• Opening bank accounts: Many banks and financial institutions accept ITINs as a form of identification for opening bank accounts.
• Facilitating business activities: Having an ITIN may be necessary for various business purposes, like getting an Employer Identification Number (EIN) for a business entity, filing business taxes, or conducting financial transactions with clients or vendors.

By understanding the importance of an ITIN and staying informed about its expiration status, you can ensure that you comply with tax laws, avoid penalties, and access the tax benefits you’re entitled to.

If you have questions or concerns about applying for an ITIN and you’re in the U.S., you can call the IRS toll-free at 800-829-1040. If you’re outside the U.S., you can call 267-941-1000, which is not a toll-free number.

Filing your taxes with an ITIN can be confusing. Work with a Tax Pro who can help you get it right.

About the Author

Mark Steber is Senior Vice President and Chief Tax Officer for Jackson Hewitt. With over 30 years of experience, he oversees tax service delivery, quality assurance and tax law adherence. Mark is Jackson Hewitt’s national spokesperson and liaison to the Internal Revenue Service and other government authorities. He is a Certified Public Accountant (CPA), holds registrations in Alabama and Georgia, and is an expert on consumer income taxes including electronic tax and tax data protection.

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