ITIN is an Individual Taxpayer Identification Number that is issued by the IRS (Internal Revenue Service) to certain individuals. More specifically, the ITIN number is issued to individuals who are not eligible for SSN (social security number).
Below are 7 main reasons you need to get an ITIN Number from IRS issued in your name.
1. Obtain Loans and Credit
You must apply for an ITIN Number if you want to obtain bank loans or credit cards in your name. You must also get an ITIN Number if you want to apply for mortgage loan from banks or any other financial company.
2. Obtain Refunds of Income Tax Withheld by IRIS
Another reason to get an ITIN Number is to obtain refunds of income withheld by the IRS. IRS sometimes makes mistake in taxing individuals. You can obtain tax refunds only through an ITIN tax number if you have been wrongly taxed by the taxation authority.
3. Pay Income Taxes
The most obvious reason to get an ITIN Number is to file income taxes with the income tax authority. Everyone that works and resides in the U.S. must pay taxes to the state and government. Usually, SSN number is used when filing income taxes. However, if you are not eligible for SSN number, an ITIN number can be used to file both state and federal taxes.
4. Obtain U.S. Immigration
In order to obtain U.S. citizenship, undocumented or non resident aliens need to prove that they have been acting as a “responsible” citizen during the past 3 – 5 years of their stay in the U.S. Paying taxes validates that you have been acting responsibly while residing in the U.S. You must get an ITIN Number if you want to increase your chances of obtaining citizenship of the country.
5. Qualify for Child Tax Credit
Another great reason to get an ITIN Number is that you can become eligible for Child Tax Credit (CTC). The CTC gives tax credit amounting to about $1,000 for each child. In case you earn more than $8,000, you can also qualify for Additional Tax Credit, which the government pays to taxpayers even if they owe taxes.
6. Open A Business
When you get an ITIN Number, you can apply for an EIN (Employer Identification Number) to legally open your business in the U.S. This number is used in many states to obtain business licenses or form a corporation.
7. Other Reasons to Get an ITIN number
There are various other reasons to get an ITIN number. You can present the ITIN tax number to obtain car insurance, driving license, phone lines, and cell phones. These things are essential for every individual residing in the country.
In conclusion, getting an ITIN number is essential if you reside in the U.S. but do not have a SSN (Social Security Number). You should recommend people in your social circle who do not possess this card to get an ITIN number for themselves, and if required, for their family members.
If you want to apply for an, Individual Taxpayer Identification Number, or ITIN tax number and have any other questions, please feel free to contact us at 888-509-3616. If you have any suggestions please share those with us as well. Freedomtax ITIN Number has a professional team of IRS Certifying Acceptance Agents, and tax accounting professionals with more than 16 years of experience, helping immigrants with their ITIN application. Freedomtax can also help immigrant entrepreneurs incorporate a business in the USA. Freedomtax ITIN Tax Number Online services provides Quality, Professional Service with a Family Feel.