In case one is not a U.S. citizen or resident, the sea of tax forms can be overwhelming. One of the most critical pieces of information so many taxpayers need is the Individual Taxpayer Identification Number, more commonly called an ITIN.
This article will outline what an ITIN is and why it’s important, along with explaining the steps for requesting one.
By the end, you will have a vivid idea of the process, the required documents, and how one can make good use of available online facilities furnished by the IRS to make the application process hassling-free.
What is ITIN Number?
The ITIN stands for Individual Taxpayer Identification Number. It means a tax processing number issued by the Internal Revenue Service (IRS). It is a nine-digit number and formatted like a Social Security Number SSN 9XX-XX-XXXX.
The ITIN is the tax processing number the Internal Revenue Service issues to those people who need a U.S. taxpayer identification number and, at the same time, are not eligible or cannot get an SSN.
It basically helps the applicant taxpayers in complying with the U.S. tax laws during the process of filing for their taxes and claiming benefits.
What is the IRS?
The Internal Revenue Service, or IRS, is the revenue service of the United States federal government, collecting taxes and enforcing internal revenue laws.
The Internal Revenue Service has numerous services that help taxpayers, such as issuing ITINs for eligible persons.
The role played by the IRS in issuing the ITIN makes it important to understand its role in order to understand the significance and the lines of use of the ITIN.
Which Documents are Required?
You will be required to provide specified documentation in support of your identity and foreign status in order to apply for an ITIN.
The primary supporting document will be an IRS Form W-7, Application for IRS Individual Taxpayer Identification Number. You must submit this form with the following:
- Passport (stands alone): If you have a passport, it is the only document that proves both identity and foreign status.
- National identification card: Must include your name, photo, address, date of birth, and the expiration date.
- S. or foreign driver’s license
- Birth certificate, required for dependents under 18 years
- Foreign Voter’s registration card
- Civil birth certificate
- Medical records for dependents less than 6 years
- School records for dependents less than 18 years
The above documents have to be originals or certified by the issuing agency. Photocopies or notarized copies are rejected.
Eligibility Criteria for ITIN Application
To apply for an ITIN, the person must be eligible. The general requirements for eligibility are illustrated below:
- Nonresident alien who needs to file a U.S. tax return
- United States resident alien who is considered a resident based on the number of days present in the United States and must file a U.S. tax return
- Dependent or spouse of United States citizen/resident alien
- Dependent or spouse of a non-resident alien visa holder
- Nonresident alien who will claim a tax treaty benefit
Where a non-resident-alien student, professor or researcher is mandated to file U.S. tax return, or claim an exemption
You can get an ITIN if you are/would be any of the above descriptions .
How Can I Find the ITIN Number Online?
It is hard to look up your ITIN online because there is not a publicly available online service from the IRS to look up any ITIN numbers. However, you can also find it in prior filed tax returns or other correspondence from the IRS.
Now, if you cannot find your ITIN—that is, you have either misplaced or lost it—you may need to contact the IRS directly. The reason is that the IRS won’t send out any ITIN number or provide any information concerning ITINs via e-mail or over a phone call for security reasons.
Where Can I Use My ITIN Number?
The ITIN can be utilized for many activities related to taxation. Now, let us see some of the significant ones:
- Filing US Federal tax returns
- Claiming tax treaty benefits
- Opening a bank account-although it’s not accepted in most banks, some banks may allow an ITIN.
- Applying for a mortgage
- Receiving tax credits and refunds
Notice that an ITIN does not give the right to work in the U.S. neither does it make one eligible for Social Security benefits nor the Earned Income Tax Credit.
Online Services the IRS Provides
The Internal Revenue Service has various online services available to support the application for ITIN. They are:
IRS.gov—This is the official site where the information is given regarding ITINs, including their applications, instructions, and frequently asked questions.
Online Forms and Publications—You can download Form W-7 with instructions direct from the website of the IRS.
Where’s My Refund?: After filing your tax return using your ITIN, you can track the status of your refund online.
ITA (Interactive Tax Assistant): This tool will help you see if you need to file a tax return and if you could qualify for any tax credits or deductions.
Free File: The IRS provides free online tax preparation and filing benefits to eligible taxpayers.
Conclusion
Procuring an ITIN number is an fundamental step for non-resident and resident aliens bound by compliance of U.S. tax laws. Understanding what an ITIN is, the role of the IRS in this, and how one applies will make the task less daunted.
Having proper documents, being eligible, and availing of the online services of the IRS shall ensure a smooth flow in the application process.
In essence, remember that the ITIN is not just a number; it is your way to go through the U.S. taxation system and have your taxing obligations in order.
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.