Learn how international students in the U.S. can apply for an ITIN
Do you happen to be an international student studying in the United States? You probably must have come across the ITIN, an abbreviation for Individual Taxpayer Identification Number.
The ITIN number is crucial to a non-US citizen who wishes to file his taxes in the United States.
In this article, we will discover what an ITIN is, why it is important for foreign students, and how you can ensure fast ITIN processing. Let’s make this journey simple and easy to understand!
What is an ITIN?
An ITIN is a nine-digit number that is issued by the Internal Revenue Service (IRS). An ITIN provides a number of individuals who cannot qualify for an SSN an opportunity to comply with tax filing requirements. Therefore, if you are a foreign student intending to work or study in the United States, it will help you file your taxes appropriately. The following are the main points concerning ITINs:
- Purpose: An ITIN is to trace one’s tax liability.
- Eligibility: The person who can apply for an ITIN are foreign students, dependents, and other non-residents.
- Use of an ITIN: You can file your federal tax returns, open a bank account, and take a loan using an ITIN.
Why Do Foreign Students Need an ITIN?
As an international student, you will face several financial obligations, especially in terms of taxes. Here’s why you need an ITIN:
- Tax Compliance: It helps you to comply with the U.S. tax laws even if you do not have an SSN.
- Avoiding Penalties: Without an ITIN, you might face penalties for not filing your taxes.
- Financial Opportunities: An ITIN can help you open a bank account and access other financial services.
How to Apply for an ITIN
Applying for an ITIN can be intimidating, but it doesn’t have to be! Follow these steps to make the process clear and efficient:
Step 1: Complete Form W-7
The first step is to fill out IRS Form W-7, the application for an ITIN. Here’s what you need to do:
- Get the form: You can download Form W-7 from the IRS website.
- Fill it out carefully: Ensure that the information is correct. Double-check to avoid mistakes, as the wrong information will delay the processing.
- Select the correct category: As you are a foreign student, check the box for “Nonresident alien.”
Step 2: Collect Necessary Documents
You will need to submit some documents to process your application. These documents will verify your identity and foreign status. Here’s what you should prepare:
- Proof of Identity: This can be a passport, national identification card, or other government-issued documents.
- Proof of Foreign Status: Provide documents that show you’re a non-resident, such as your student visa (F-1 or J-1) or Form I-20.
Step 3: Submit Your Application
You have two options for submitting your Form W-7:
- By Mail: Send your completed form along with your documents to the address specified in the instructions. Use a reliable mailing service to avoid any delays.
- In Person: You can also apply in person at designated IRS Taxpayer Assistance Centers. This option might be faster and allows you to ask questions directly.
Step 4: Wait for Processing
After submitting your application, the waiting period begins. Here’s what to expect:
- Processing Time: Usually, six to eight weeks will pass by for the IRS before processing an application. Peak seasons for taxation are usually quite lengthy.
- Following your Application Status: You are able to reach out to the IRS after six or seven weeks.
Tips to Process ITIN Speedily
There is actually very little which can be controlled while waiting for one’s ITIN; however, here are some useful suggestions to enhance its processing pace:
- Accurately Complete Your Application: No error is acceptable in the application form. Errors could delay or disqualify the application.
- Attach All Required Documents: Ensure all the required documents are attached when submitting your application. Without necessary documents, you may be expected to wait a little longer.
- Apply Early: Once you have realized that you need an ITIN, file your application early. The sooner you apply, the better.
Common ITIN Questions
FAQ 1: What happens if my ITIN application is rejected?
If your application is rejected, the IRS will send you a letter explaining why. Common reasons might include missing documentation or incomplete forms. Review the letter, make the necessary adjustments, and resubmit your application.
FAQ 2: Can I renew my ITIN?
Yes, you can renew your ITIN if it has expired. The renewal process is the same as applying for a new ITIN. Just ensure that you submit a completed Form W-7 along with any required documents.
FAQ 3: Do I need to pay to apply for an ITIN?
No, and there is no cost to get an ITIN. However, if you decide to hire the services of a tax consultant or advisor, it would cost you money.
Conclusion
In sum, getting your ITIN when you are in the United States as a foreign student is important because it gives you the step you need for a legal tax-paying experience in that country. It makes the experience so smooth and fast.
Take all the time to fill it accurately, get all the necessary documents, and then apply early enough. And as long as you do these steps, you would be all good to have things in line in terms of U.S. tax law, and your overall experience would also be nice with your study period in the States. Good luck!