Advantages of ITIN
While living in the US, you have to, by law, pay taxes to the government, regardless of your immigration status. Failure to pay taxes can land you in trouble with the federal government and in extreme cases, even face jail time. Additionally, with the IRS monitoring just how much you earn and the taxes you must pay accordingly, paying taxes is even more important.
The IRS tracks this via the 9-digit social security number, aka the SSN, which is issued to every US resident and citizen. Not only does this help people in filing their taxes, but it’s also needed when you have to open a bank account, go through a background check, or enlist for government benefits.
Of course, even when you’re not a US resident or citizen, you’re still required to pay taxes. However, since you won’t have access to an SSN, there is an alternative for you. It’s called the ITIN. It’s also issued by the Internal Revenue Service and similar to an SSN, also contains nine digits. While it will not provide you with the same benefits as an SSN, you should still consider getting an ITIN as it can lead to several benefits. Here are some of them:
You Can Buy Health Insurance
If you’re not working currently or your job doesn’t cover health insurance, you can buy an individual health insurance policy in some cases with an ITIN. This will allow you to get access to basic health care under the Affordable Care Act. However, before you apply, be sure to have proof in the form of ITIN. Moreover, keep in mind that you might have to renew this policy every year or so depending on the terms and conditions.
Helps You Stand Out to Employers
If you’re looking to work in the US, you should put an ITIN on your resume. Not only does this show that you are a super serious candidate, but it also shows employers that you have the permit to work in the US. Many times, employers might overlook your CV if they believe that they are the ones who will have to sponsor you. An ITIN, therefore, can allow you to cross those hurdles and allow you to stand out among the employers.
Allows You to Avail Benefits
While most benefits are only eligible to US citizens and residents, having an ITIN can still offer some form of benefit. For instance, you can qualify for food stamp assistance or some form of housing assistance. In fact, an ITIN can help you get a mortgage from the bank, in the event that you don’t qualify for government assistance. Additionally, if you’re self-employed, you can always file your own taxes with the help of ITIN.
May Get You a Driver’s License
Traveling using public transport or even Uber and the like can get a bit overwhelming, not to mention expensive. It’s always better to have your car that you can drive around in. Well, depending on the state you’re living in, an ITIN can be sufficient to get you a driver’s license.
However, the rule doesn’t apply to all states, and its best to check out the Department of Motor Vehicles guidelines to see the guidelines set by your state. In case your state allows you to have a driving license, be sure to get some other legal documentation to confirm your status in the US. These documents could be a passport or a foreign driver’s license.
Gets You a Credit Card
Living and working in the US means that you need to have a strong credit history–loans, mortgages, or sometimes even payments on certain devices all require a strong credit history. And an ITIn can help you with that.
Once you get an ITIN, you can apply for credit cards. You’ll find credit cards for people who have no social security numbers and a limited credit history. Of course, to get the credit card in the first place, you will have to disclose your income as well as your residence status. With this, you can build your credit history and qualify for greater benefits in the future.
Opens Educational Opportunities
If you’re looking to get a degree or enroll in a particular college, an ITIN can help with the funding. Scholarships and other educational forms require you to disclose your residency status. They need it to determine if you’re eligible for financial aid or other forms of support. By handing over your tax returns and showing where you live, you can decrease your tuition or get more funding.
Allows You to Save for Retirement
Well…not completely. So this is what happens. As someone who is working in the US, you are required to pay taxes even when you don’t have an SSN. However, in the future when you do become a resident or a citizen and get an SSN, the government will look into your entire tax record before calculating your retirement benefits. This means that you can get a greater amount of return for all the work that you have put in over the years if you start keeping an ITIN from the start.
Low Risk of Identity Theft
Unlike an SSN, which you are supposed to declare everywhere and which is needed to conduct financial transactions, an ITIN is relatively safer as it is only used for tax-related purposes. Moreover, even the IRS cannot disclose it for immigration-related matters.File your ITIN with us!
So if you’re on the fence on whether or not to get an ITIN, it’s best to get one immediately. From opening educational opportunities to giving you a greater return on retirement benefits, an ITIN can help you with so much. If you’re in doubt, reach out to the professionals and they will guide you through the whole process!More information please visit IRS website.