| What Is an ITIN? An Individual Taxpayer Identification Number (ITIN) is issued by the IRS for individuals who need to pay taxes but don’t qualify for a Social Security Number. |
If you earn money in the U.S., you will owe federal taxes on that income. However, if you don’t have a Social Security Number, you won’t be able to file a return. That’s why the IRS created the Individual Taxpayer Identification Number.
Here’s how ITINs work and who is eligible to apply:
What Is an ITIN?
An ITIN stands for Individual Taxpayer Identification Number. It is a 9-digit number issued by the IRS to individuals who need to pay federal taxes but aren’t eligible for a Social Security Number (SSN). The IRS also issues ITINs for spouses and dependents who don’t have an SSN.
What Is the Purpose of An ITIN?
Why would you need an ITIN? All wage earners in the U.S.–regardless of immigration status–are required to pay taxes on their earnings. But not everyone qualifies for an SSN, which is required to file federal taxes.
So the IRS uses ITINs to help individuals without an SSN comply with U.S. tax laws. This includes resident aliens, nonresidents with U.S. income and/or their spouses and dependents, and even undocumented immigrants.
However, ITINs do not:
- Authorize an individual to work in the U.S.
- Endorse an individual’s legal status in this country
- Entitle an individual to Social Security benefits or the Earned Income Tax Credit
- Change your immigration status in the U.S.
Other things you can use an ITIN for:
In addition to filing taxes, you may be able to use your ITIN to open an interest-bearing bank account.
Nonresidents who wish to open a bank account will need proof of name, birthdate, address, photo ID, and either an SSN or ITIN. If you wish to open a bank account that doesn’t accrue interest, you may not need an ID number. But if you earn interest, you’ll have to pay taxes on those earnings using your ITIN.
Who Is Eligible for an ITIN?
Many people qualify for an ITIN.
You may be eligible for an ITIN if the following applies to you:
- You do not have an SSN and are not eligible to obtain one, and
- You have a requirement to provide a federal tax identification number or file a federal tax return, and
- You are in one of the following categories:
- Nonresident alien who is required to file a U.S. tax return
- U.S. resident alien who is (based on days present in the United States) filing a U.S. tax return
- Dependent or spouse of a U.S. citizen/resident alien
- Dependent or spouse of a nonresident alien visa holder
- Nonresident alien claiming a tax treaty benefit
- Nonresident alien student, professor, or researcher filing a U.S. tax return or claiming an exception
Why Do Undocumented Immigrants Use ITINs?
Workers earning income in the U.S. are required to pay taxes. Undocumented immigrants can use their ITIN to pay their taxes and demonstrate that they are complying with federal law.
Filing federal taxes as an undocumented immigrant also
- Helps demonstrate “good moral character” if they have the opportunity to apply for legal status.
- Provides a documented history of work in the U.S.
- Documents their physical presence in the U.S. over time.
- Makes filers eligible to claim certain tax benefits, like the Child Tax Credit
What Tax Credits Can ITIN Filers Claim?
While you can’t claim the Earned Income Tax Credit using an ITIN, there are other tax benefits you can claim:
- Child Tax Credit
- Child and Dependent Care Credit
- American Opportunity Tax Credit
- Credit for Other Dependents
- Premium Tax Credit
- Lifetime Learning Credit
Check out our article “What tax credits can ITIN filers claim?” to learn more.
How to Apply for an ITIN
To apply for an ITIN:
- File Form W-7, Application for IRS Individual Taxpayer Identification Number (ITIN), with your federal income tax return.
- Include original documentation or certified copies from the issuing agency to prove identity and foreign status.
If your application is approved, you will typically receive your ITIN from the IRS in the mail within 7 weeks. Be sure to send in your application with plenty of time to meet the filing deadline, or you may incur late penalties.
Where to Apply:
You have to option to apply for an ITIN by mail or in person with an IRS-authorized Certifying Acceptance Agent or at a designated IRS Taxpayer Assistance Center. If you apply in person, you won’t have to send your proof of ID and foreign status documentation through the mail.
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The articles and content published on this blog are provided for informational purposes only. The information presented is not intended to be, and should not be taken as, legal, financial, or professional advice. Readers are advised to seek appropriate professional guidance and conduct their own due diligence before making any decisions based on the information provided.
