Getting an Individual Taxpayer Identification Number is a critical way through which an undocumented person living in the United States may achieve financial stability and work in compliance with the United States’ taxation system.
Although an ITIN does not replace a Social Security Number, it helps the undocumented immigrant to pay taxes, have a bank account, and be able to lend from some loaning services.
This article gives an overview of how an ITIN number for an undocumented person could be procured with the application process, documents required, and varied uses and benefits that exist in having an ITIN.
What is ITIN?
An ITIN is a tax processing number issued by the IRS for those who are not eligible to obtain an SSN. It is used primarily for federal tax-reporting purposes. An ITIN is a nine-digit number that always begins with “9.”
It allows individuals who are not authorized to work in the United States—the undocumented, non-resident aliens, and other foreign nationals—to comply with U.S. tax laws.
How to Apply for an ITIN Number?
Applying for an ITIN includes several steps designed to ensure applicants provide accurate verifiable information. Here’s a detailed line of steps one is to take on how to apply for an ITIN number:
Where Can I Use My ITIN Number?
An ITIN number can be used in various contexts, including:
Federal Tax Returns: The most prominent application of an ITIN is allowing undocumented aliens the opportunity to file their federal tax returns.
Opening Bank Accounts: The vast majority of banks, along with other financial institutions, will accept an ITIN for identification purposes in opening accounts.
Applying for Credit: Some are willing to accept ITINs when a person applies for a loan or a credit card.
Renting Property: Some landlords will accept an ITIN as a valid form of identification when applying for rental properties.
Claiming Tax Benefits: ITIN holders can claim some types of tax credits, including the Child Tax Credit.
What Documents are Required?
To obtain an ITIN,, the following documents need to be submitted:
Form W-7: This form is the application for an ITIN, issued by the IRS.
Federal Tax Return: A copy of the complete tax return needs to accompany the Form W-7.
Identification Documents: Applicants must submit original or certified copies of identification documents. The following documents are accepted:
Passport can be a self-supporting document and no other documents are required if this is provided
National Identification Card must include the following elements : photo presented, name, address of the current residence, birth date, and expiration date
Picture U.S. or foreign driver’s license
Birth certificate dependents
State ID card
The U.S Department of state visa
The U.S. Citizenship and Immigration Services photo identification
Foreign military identification card
School records dependents and students
The requirement of ITIN Application
ITIN application has the following noteworthy importance, such as:
Tax Compliance: It allows undocumented persons to pay U.S. taxes and avoid penalties or possible legal action against them.
Financial Inclusion: ITIN holders can open bank accounts or credit accounts.
Building Credit History: With an ITIN, building a credit history is possible, which may prove very vital in the future with respect to financial dealings.
Tax Credits Eligibility: ITIN holders shall be entitled to some tax credits that will be useful in offering financial relief.
What is the ITIN Number Used for in the USA?
Among other uses, ITIN in the USA includes:
Filing Taxes: The whole idea of ITIN is paying federal and state taxes with an ITIN.
Getting Refunds: ITIN holders just like any other taxpayer receive tax refunds if they are eligible.
Opening Financial Accounts: Many banks and credit unions accept an ITIN to open accounts.
Loan Application: Some lenders make use of the ITINs to sanction mortgage, auto, and personal loans.
Employment Verification: Though an ITIN does not authorise you to find employment in the U.S., you will still find some employers who make use of ITINs for verification purposes.
How to Get an ITIN Number for a non-U.S. Citizen?
A non-U.S. citizen, including the undocumented aliens, need not be concerned with how to get an ITIN and can obtain one by:
Filling Form W-7: The applicant needs to fill out the IRS Form W-7, Application for IRS Individual Taxpayer Identification Number.
Attach a copy of the federal tax return to the form W-7.
Identification Documents: Obtain the necessary identification documents. Make sure that they are originals or certified copies of the same.
Submit the Application: Mail the Form W-7, with the completed tax return and identification documents, to the IRS or apply in person through an IRS authorized CAAs or visit an IRS TAC in person.
The application will be processed by the IRS, and they will mail your ITIN number to you. During peak processing time—January 1st to April 15th—it takes about 7 weeks.
Conclusion
The ITIN number is thus a way through which the undocumented living in the U.S. can participate in tax compliance, financial inclusion, and generally access relevant services.
By understanding how to apply, what documents are required, and the nature of an ITIN, undocumented persons can make efforts toward financial security.
If you need help or any answers to questions regarding how to apply for an ITIN, then seek assistance from a Certified Acceptance Agent or look on the IRS website for further information.
For more detailed information on Individual Taxpayer Identification Numbers (ITINs), including how to apply and legal considerations, visit the IRS official page on ITINs.
For further assistance with ITIN applications, check out our ITIN page. Stay informed and compliant to navigate the complexities of employing ITIN holders legally and ethically.