The fine lines of the United States’ income tax system are not very easy to navigate, much less for Non-U.S. residents.
One of the essential requirements in this regard, in cases where a Social Security Number is not applicable, is the Individual Taxpayer Identification Number, or simply ITIN. This article will walk you through understanding what an ITIN really is, its importance, and how to get one, step by step.
Whether you are a non-resident, a parent wanting an ITIN for your child, or seeking to get an ITIN absolutely free of cost, this comprehensive guide is going to make things easier for you.
What is ITIN?
An ITIN is an Internal Revenue Service-issued tax processing number. It is a nine-digit number, beginning with the number 9 and formatted like an SSN: XXX-XX-XXXX. It is applied by those who have to possess a U.S. taxpayer identification number but don’t have or aren’t eligible to get an SSN.
What is ITIN Number Used for in the USA?
The ITIN is primarily associated with federal tax reporting. One need not worry about his or her immigration status; it just makes sure that the person is able to comply with the U.S. taxation laws and pursue filing returns accordingly.
Tax Filing and Reporting
ITIN allows filing tax returns and meeting one’s tax obligations for all non-U.S. citizens. It is very important, particularly where persons have income from U.S. sources.
Claiming Tax Benefits
Some of the tax credits and deductions require an ITIN to claim, such as the Child Tax Credit. Without having that, huge tax benefits go out of hand.
Opening a Bank Account
Most banks and other financial institutions require an ITIN to open a bank account. Obviously, this is of particular significance to non-residents who need access to banking facilities in the U.S.
Compliance and Legal Residency
A mailed tax return, filed using an ITIN, benefits individuals after several years when they apply for adjustment of immigration status. It is one of the most fitting ways of showing compliance with the tax laws of the U.S., which may turn out to be very advantageous during immigration processes.
Which Documents are Needed
You are required to provide numerous documents while applying for an ITIN to prove your identity and foreign status. The major documents needed include –
Valid Passport
This is the most common document used, and it fulfills the need both as an identification document and as proof of foreign status.
National Identification Card
Issued by your home country having a photograph of yours and mentioning name, address, date of birth, and date of expiration.
Foreign Birth Certificate
This could be submitted in conjunction with other supporting documents in the absence of a passport or national ID.
U.S. Visa
Where applicable, this is also an accepted proof of identity.
How to Get ITIN Number for Non-Resident
Now, applying for an ITIN for non-resident all follows through these steps:
Fill in Form W-7
An ITIN applying form, Form W-7, has to be appropriately filled in. This form contains questions regarding personal details and the purpose of applying for an ITIN.
Gather All Required Documents
Among other identification documents required, obtain a valid passport or national ID card and ensure it is current.
Submit Your Application
You can apply in several ways:
- Mail: Mail Form W–7 with attachments to the IRS.
- In Person: You can submit the form in person through most IRS Taxpayer Assistance Centers and accepted through An IRS Certified Acceptance Agent.
- Through a CAA: You can submit Form W–7 to the IRS for processing with the help of a certified acceptance agent who will assist with the document verification.
Wait for Processing
The IRS will then process your application and, upon approval, issue your ITIN. This process may take a few weeks, so apply well before any tax filing deadlines.
How to Get the ITIN Number for the Child?
An ITIN for a child is obtained almost on the same basis as in the case of an adult, with a few additional considerations only:
Complete Form W-7
Apply for the ITIN for your child by filling up the ITIN application form for him. Ensure that it is accurate and complete.
Provide Identification Documents
In the case of a child, you have to present his/her passport. Otherwise, his birth certificate may not suffice alone as it will need supporting documents like medical or school records.
Filing the Application
You can do this just like adults, through mail, visiting the IRS TAC, or by a Certified Acceptance Agent.
Additional Documents Needed
Depending on the case, when the child is your dependent, attaching proof of relationship like birth certificate or adoption papers may be required.
How Can One Acquire an ITIN Number Without Charged Fees?
Although rejuvenating services charge for the self ITIN assistance, there are ways through which you can have it free. They are;
Self Application
Fill out Form W-7 and gather all documents through your own efforts. You will eliminate the payment to services.
Avail IRS Resources
Go to the IRS Taxpayer Assistance Center that offers free help for applicants of the ITIN. They verify all your documents and send the application without charging.
Certified Acceptance Agents
Most CAAs operating from community-based organizations or as an affiliate of a nonprofit charge no fee for their services. You can reach out to your local organizations to find out if they offer free ITIN application services.
Conclusion
Getting an ITIN is a very important process for non-U.S. residents who are obligated by provisions that require them to pay their taxes in the United States.
Be it a non-resident applicant, a parent applying for a child, or seeking a free-of-charge application process, knowing the requirements and steps can make things easier for any applicant.
Proper use of this guide, combined with available resources, should help an applicant go through the process of obtaining an ITIN successfully and ensure one complies with the taxation regime in the United States.
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.