Can NRIs File US Taxes Without an SSN?

One of the most common questions that comes across in the minds of non-resident aliens living in the US is, "Can NRIs file US taxes without an SSN?" Yes, you can file a US tax return without an SSN (Social Security Number). Not having it does not stop you from filing your tax return in the US. Now, the question is: how can a non-resident without an SSN file a US tax return? To overcome this situation, the IRS built a separate system, i.e., the Individual Taxpayer Identification Number (ITIN). You can apply for it using Form W-7.

Further, if you are an NRI, an international student, a dependent, or a spouse living in the US without an SSN, then this blog is for you. Here you get complete information about how, without an SSN, you can file US tax returns through an ITIN in detail. So read on and clear all your doubts.

Do You Need an SSN to File US Taxes?

The simple and quick answer to this question is no. To file US taxes, you actually need a valid taxpayer identification number, and for most people in the US (NRIs, international students, dependents, or spouses), it is not an SSN. These individuals can file their US taxes using an ITIN instead of an SSN. It works exactly like an SSN when filing US taxes. Considering this, here is what an ITIN can do and cannot do.

• What an ITIN can do:
• Let you file your federal tax return
• Help you claim as a dependent or spouse on someone else's return
• Let you claim eligible tax treaty benefits
• What an ITIN cannot do:
• Authorize you to work in the US
• Change your immigration status in the US
• Make you eligible for Social Security benefits

So, no, you do not need an SSN to file US taxes. Moving ahead, let's know who can file US taxes without an SSN.

Who Can File US Taxes Without an SSN?

Several groups of people file US taxes without an SSN using an ITIN. These are as follows:

• Non-resident aliens with US source income file taxes using Form 1040-NR.
• International students on F-1 visas who are not eligible for an SSN but have reportable income in the US.
• H-4 visa holders (spouses of H-1B workers) who do not have work authorization in the US.
• Foreign nationals with US investment income such as interest, dividends, or property income.
• Dependents of resident aliens or NRIs who need to be listed on a US tax return to claim eligible tax benefits.

This was all about who can file US taxes without an SSN. Moving ahead, let's know when you should apply for an ITIN instead of an SSN.

When Should You Apply for an ITIN Instead of an SSN?

You should apply for an ITIN when you are confirmed that you do not qualify for an SSN. A quick way to check for this is:

Further, in case you applied for an SSN, but the Social Security Administration has denied your application, keep the letter by your side. This is because when you apply for an ITIN, the IRS requires proof of SSN ineligibility.

So, this is when you should apply for an ITIN instead of an SSN. Moving forward, let's know how to file US taxes without an SSN.

How to File U.S. Taxes Without an SSN?

Filing U.S. taxes without an SSN follows a different application process than the standard return. This is mainly because you need to submit your ITIN along with your tax return. To provide you with an idea, here is how you file U.S. taxes without an SSN.

Step 1: Apply for an ITIN Using Form W-7

Form W-7 is the document used to apply for an ITIN application. A few essentials:

• In most cases, you need to submit Form W-7 along with your US tax return.
• US tax returns filed with a new W-7 generally cannot be filed online; first, the IRS assigns an ITIN, then routes the paper return for processing.
• The process to obtain an ITIN generally takes 7 to 11 weeks. Additionally, it may take longer during the peak tax season, i.e., January-April. So apply for an ITIN accordingly.
• If you need additional time to file your return, you may request an extension using Form 4868 by following the current IRS instructions for taxpayers who have not yet received an ITIN.

Step 2: File the Correct Tax Return

Which IRS form you use depends on your residency status in the US, not on your visa category:

• Form 1040: It is for resident aliens who meet the Substantial Presence Test or those electing resident status for tax purposes.
• Form 1040-NR: This IRS tax form is for non-resident aliens, i.e., students on F-1 visas in their first few years or many short-term visa holders.

In the form, leave the SSN field blank; the IRS fills it in once the ITIN is assigned. 

Step 3: Attach Supporting Documents

You need to provide your identity and foreign status proof when filing your US tax return using an ITIN. Considering this, the preferred documents by the IRS for this include a valid, unexpired passport, as it fulfills both requirements on its own. In case you do not submit your passport, you need to submit at least two other qualified documents.

Additionally, to avoid mailing you your original documents, you can use two other ways:

• Apply for an ITIN using a Certified Acceptance Agent (CAA), who can verify your documents without sending your original documents to the IRS.
• Book an appointment at an IRS Taxpayer Assistance Center (TAC) for in-person verification.

This is how you can file US taxes without an SSN. Moving further, let's know the common tax filing scenarios for NRIs when they file US taxes without an SSN.

Common Tax Filing Scenarios for NRIs Without an SSN

Here are some common tax filing scenarios for NRIs without an SSN:

Scenario 1: NRI with U.S. Rental Income

An NRI who owns property in the US and earns rental income from it needs to file US taxes even without living there. Considering this, they would file US tax returns using Form 1040-NR along with an attached ITIN application.

Scenario 2: F-1 Student with a Stipend

An international student getting a taxable scholarship or stipend, but with no SSN and no work authorization. Here, the student should file the appropriate U.S. tax return based on their tax residency status, together with an ITIN application if one is required.

Scenario 3: H-4 Visa, Spouse Being Claimed as a Dependent

A spouse on an H-4 visa with no work authorization needs an ITIN to be mentioned on the joint tax return of their partner. If the couple is otherwise eligible to file a joint U.S. tax return under the tax rules, the spouse may need an ITIN if they do not qualify for an SSN.

Scenario 4: Dependent Children Overseas

NRIs claiming for their dependent children who live outside the U.S. often need a separate ITIN application for each child. Additionally, they need to submit extra documents to provide proof of their dependent relationship, where required.

These are some common tax filing scenarios for NRIs when they file US taxes without an SSN. Moving forward, let's know the common mistakes NRIs should avoid when applying for an ITIN in the US.

Common Mistakes NRIs Should Avoid When Applying for an ITIN

Common mistakes that NRIs should avoid when applying for an ITIN:

• Despite being eligible for an SSN, applying for an ITIN. It is the most common reason for ITIN application rejection.
• Submitting Form W-7 without a US tax return.
• Unnecessarily sending original documents when a CAA or TAC visit could help avoid it.
• Applying for an ITIN near the US tax filing deadline. This is because obtaining an ITIN application generally takes 7-11 weeks.
• Missing name-consistency issues between the visa documents, passport, and the W-7 can trigger delays.
• Not knowing that an ITIN comes with an expiry date. Yes, it is right. Considering this, if you have not used it for three consecutive tax years to file your US federal taxes, it expires. Additionally, under the older IRS rules, an ITIN also may require renewal under the current IRS renewal rules, including if it has expired because of prolonged non-use or if it falls within any renewal categories announced by the IRS.

So, these are some mistakes that NRIs should avoid when applying for an ITIN in the US.

Final Thoughts

Lastly, the answer to the most common question, "Can NRIs file US taxes without an SSN?" is yes, they can file US taxes without an SSN using an ITIN. Considering this, not having an SSN does not shut down your US tax filing requirement. If you do not qualify for an SSN, you can simply fulfill your US tax obligation by applying for an ITIN and filing the tax return in the country using it. To obtain an ITIN, you need to file Form W-7 and attach it to your US tax return.

Further, if you need assistance in applying for an ITIN, connect with Savetaxs. We have a team of tax experts who help you obtain an ITIN without any issue and provide you with assistance in filing your US tax returns on time with complete accuracy.