An ITIN is an Individual Taxpayer Identification Number issued by the IRS to individuals who do not have an SSN. It is a nine-digit unique tax processing number allocated to people who are required to pay taxes in the United States.
The format of the ITIN is XXX-XX-XXXX, and they can be easily identified because an ITIN always starts with the number 9.
In this guide, we will discuss everything that you need to know about ITIN as an immigrant, including what ITIN is used for, ITIN eligibility criteria, how to get one, required documents, mistakes to avoid while filing for ITIN, facts about it, and more.
Key Takeaways
- An ITIN is a nine-digit unique number issued by the IRS to individuals who are not eligible for a U.S. taxpayer identification number, also known as an SSN, and are required to file a United States tax return.
- NRIs, foreign nationals, dependents, and spouses commonly use the ITIN.
- ITINs are required to be renewed periodically because expired ITINs can delay tax refunds as well as the tax processing.
- An ITIN is solely for tax compliance, and holding one does not make you eligible for an SSN; your status remains that of an immigrant.
What is an ITIN Number?
ITIN stands for Individual Taxpayer Identification Number. This number is a nine-digit, unique tax processing number issued by the Internal Revenue Service Department.
The IRS assigns this number to taxpayers and their dependents who are either immigrants or not qualified to obtain a U.S. Social Security number (SSN) from the Social Security Administration (SSA).
What is an ITIN Used For?
The Individual Taxpayer Identification Number is used by the Internal Revenue Service (IRS) for federal tax reporting purposes only. However, the IRS issues the ITIN for federal tax purposes, but it can also be accepted for other purposes, such as opening an interest-bearing bank account as an immigrant or getting a mortgage.
Who is Eligible For an ITIN?
Regardless of your immigration status, if you are a resident alien, nonresident alien, foreign alien status, or their dependent or spouse, you can apply for an ITIN.
Nonresident Alien and Resident Alien:
If you are not a U.S. citizen, your tax status may be either that of a resident alien or a nonresident alien.
Nonresident Alien: An individual's status is that of a nonresident alien when they do not meet any of the criteria, which include the green card or substantial presence test.
Resident Alien: If an individual is present in the United States for more than 183 days, or if they are a lawful permanent resident of the US.
Dependents and spouses are only eligible for an ITIN if they can be claimed for an allowable tax benefit (such as a spouse filing a joint return, head of household, or premium tax credit) or if they file their own tax return.
Reasons to Apply For an Individual Taxpayer Identification Number
An individual might need an ITIN number if they are:
- A nonresident alien claiming benefits from a tax treaty.
- A non-resident alien filing a federal tax return in the US.
- A resident alien filing a federal tax return in the United States.
- A spouse or dependent of a US citizen or a resident alien.
- Nonresident alien student, researcher, or professor filing for a federal tax return in the US, or who wants to claim a tax exemption.
- Spouse or dependent of a non-resident alien United States visa holder.
Who Does Not Need an ITIN Number?
The entities listed below do not require an Individual Taxpayer Identification Number (ITIN).
- If you are a citizen of the United States.
- If you are a nonresident alien with a US work visa.
- If you are a Permanent legal resident of the United States.
- Anyone eligible for an SSN.
Documents Required to File an ITIN
These are the documents you'd need to apply for your ITIN.
Form W-7: Individuals are required to complete Form W-7, which is an IRS application for an individual tax identification number.
Next, individuals are required to prove their identity and foreign nationality status by providing the original documents or certified copies thereof. Ensure that the notarized copies of documents are not acceptable.
A passport is the standard document that provides both foreign individuals and tourists with identity and, along with tit he application, might need to submit any other documents with it.
However, if the passport is not submitted as proof of identity or foreign nationality, in that case, the IRS will only accept a combination of two or more documents from the list of 13 documents listed below as proof of foreign nationality status and identity.
The Supporting Documents Are:
- Passport (the only standalone document you will need)
- US Citizenship and Immigration Service (USCIS) photo identification.
- A visa issued by the US Department of State.
- US driver's license.
- US military identification card.
- Foreign driver's license.
- Foreign military identification card.
- A national identification card that must have the applicant's name, address, DOB, photograph, and the expiration date.
- US state identification card.
- Foreign voter's registration card
- Civil birth certificate (this document is required for accommodations for individuals under 18 with a valid passport).
- Medical records (this document is valid only for children who are under the age of 6).
- School records (if the applicant is a student and under the age of 24, then their records are valid.)
How to Get an ITIN?
There are two ways to apply for an ITIN number.
Method One: Via Mail
You can mail your ITIN package, which includes the completed form and the required documents, to any of the addresses below.
US Postal Service
- Internal Revenue Service
- Austin Service Center
- ITIN Operation
- PO Box 149342
- Austin, TX 78714-9342
Private Delivery Service
- Internal Revenue Service
- ITIN Operation
- Mail Stop 6090-AUSC
- 3651 S. Interregional, Highway 35
- Austin, TX 78741-0000
Method Two: In Person
When applying in person, individuals can have their supporting documentation authenticated and returned immediately.
Apply for an ITIN Number in Person With:
- IRS Taxpayer Assistance Center with ITIN services.
- Volunteer Income Tax Assistance (VITA) site with ITIN services.
- Acceptance Agent or Certifying Acceptance Agent.
Lastly, when the Internal Revenue Service 9IRS) approves the application, the ITIN is sent to the concerned applicant via mail.
Note that if a person has an ITIN and he/she does not include it while filing a U.S. tax return for three consecutive years, it will automatically expire.
What Happens After the ITIN Application?
Once the ITIN number has been applied for, allow approximately seven weeks for the IRS to notify you about your ITIN application status.
During tax season, which typically runs from January to April, the IRS may take up to nine to eleven weeks to notify you of the application status.
If the individual has submitted any original documents or certified copies with their ITIN application, they should be returned to them within approximately 14 weeks from the date you mailed them.
If the information and documents are not provided within the given time frame, you can contact the IRS.
IRS Contact Details
Individuals From The US
800-829-1040
7:00 AM to 7:00 PM Local Time
Individuals From Abroad
267-941-1000 (not toll-free)
Hard-to-hear or deaf callers
TTY/TDD 800-829-4059.
Why Non Resident Indian (NRIs) Might Need an ITIN Number?
Indian residents living in the United States might need an ITIN for several reasons.
Compliance with Federal Taxes: To file federal taxes, claim refunds, or avail any tax treaty benefit, an NRI needs an ITIN number.
To Access Banking: For an NRI to open a bank account in the United States, an individual tax identification number is mandatory.
To Build Credit: For NRIs to apply for a credit card and a loan in the United States, an ITIN is required.
Business Operation: For NRIs to fulfill their tax obligations for business and entrepreneurial ventures in the USA, an ITIN number is needed.
Rental Application: ITIN number for NRIs might also be required in the case of rental applications.
Mistakes to Avoid While Applying For an ITIN Number
There are several mistakes that applicants make while applying for an ITIN, and such errors result in rejection of their application.
Incorrect or Incomplete Form: Please double-check all the information you fill in the Form because inaccurate or incomplete data might result in the rejection of the ITIN.
Not Providing all Documents: If you are not providing all the documents asked to prove your foreign status and identity, then the application could either be put on hold or rejected.
Avoid Sending Original Documents: The IRS asks the applicant to submit the original documents or certified copies of those documents. It is advisable to send certified copies, as sending the original documents might result in them being damaged or lost. Hence, to avoid any mishap, it is advisable to send certified copies.
What Are the Types of Taxpayer Identification Numbers?
The different types of taxpayer identification numbers in the USA are:
- SSN - Social Security Number
- EIN - Employer Identification Number
- ITIN - Individual Taxpayer Identification Number
- ATIN - Taxpayer Identification Number for Pending U.S. Adoptions
- PTIN - Preparer Taxpayer Identification Number
Expert Help In ITIN Number Filing In USA
Applying for an ITIN number in the USA as an immigrant can be a complicated and burdensome process. However, if you comply with the IRS requirements, you might not be able to avoid the mistakes. But for individuals who are lacking such information, you definitely need a US taxation expert to file for your Individual Taxpayer Identification Number (ITIN).
Savetaxs, an emerging name in the tax industry, has been helping people obtain their tax identification number (TIN) for years now. We have been helping immigrants, U.S. residents, citizens, and non-resident aliens obtain the appropriate tax identification number they need through a smooth, hassle-free, and quick process.
We at Savetaxs ensure all the documents you provide are right, and we double-check every information that has been filled in the form before applying.
Our experts are available to you 24/7 across all time zones, so connect with us today and let's get your ITIN as quickly as possible.
Note: This guide is for informational purposes only. The views expressed in this guide are personal and do not constitute the views of Savetaxs. Savetaxs or the author will not be responsible for any direct or indirect loss incurred by the reader for taking any decision based on the information or the contents. It is advisable to consult with either a Chartered Accountant (CA) or a professional Company Secretary (CS) from the Savetaxs team, as they are familiar with the current regulations and help you make accurate decisions and maintain accuracy throughout the whole process.
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