amazon ITIN number

Amazon ITIN Number

Are you still wondering about how can you start doing a business with a company like Amazon in the United States? Does the idea of getting your 30% of the earnings withheld against the U.S. taxes scare you? If yes, then you have come to the right place to gather all the information that you need to know right now!

We understand the frustration that may arise, as you may or may not, be the resident of the United States but in order to initiate an eCommerce business with Amazon, you most likely need an Amazon ITIN number, especially, in the case that you do not hold a social security number as well. This blog post on Amazon ITIN number will not only help you in understanding what an ITIN number is but will also tell you the benefits that are attached to it.

If you need help in getting an ITIN number to start selling on Amazon, please call us at 407-344-1012, or email us at info@freedomtafl.com.

What is an ITIN Number and where to get one?

As stated above, if you do not hold a social security number and want to start the business as an Amazon seller, then you need an Amazon ITIN Number. An ITIN number is basically the acronym for the ‘Individual Taxpayer Identification Number’. As you might already know, this 9-digit number is issued by IRS (Internal Revenue Service) and is used for the processing of tax in the United States.

The ITIN starts with the number 9 till 70 to 99 (however, it does not include 89 and 93 as the fourth and the fifth digit). This number is used to report the federal taxes only. Fundamentally, an ITIN or an Amazon ITIN number is issued by the IRS alone. Moreover, this is issued only to the individuals who neither hold a social security number nor are entitled to obtain one.

Hence, if you are based out of the United States and are an Amazon seller, in order to receive the Amazon ITIN number, you first need to make sure that you meet the eligibility criteria. However, it should be understood that an ITIN number does not necessarily make an individual entitled to work and earn in the United States. Similarly, this will also not make a person eligible to get a U.S. social security number along with Income Tax Credit for the earned income.

What is the difference between the EIN and an ITIN?

Unlike ITIN (Individual Tax Identification Number), an EIN is an acronym for ‘Employers Identification Number’. Both of them are ways in which you can save the withholding tax by a great extent. So if you are an Amazon seller and looking for an Amazon ITIN number, then you must know that an Amazon ITIN number takes more time, in fact, a long time to obtain. Also, it requires many steps like paying fees, filling out forms and frequent visits to the U.S embassies or consulates before you finally get your Amazon ITIN number.

Unlike ITIN, the American IRS luckily allows an EIN to be issued to the non-US authors as the IRS views the non-US authors as small business owners. Moreover, the EIN can easily be received from the comforts of your own home.

Some facts about the ITIN number

There are a plenty of myths or misconceptions that revolve around the ITIN number itself or getting one in the U.S. Therefore, it is essential that you acquaint yourself with some basic facts of an ITIN number before you opt for an Amazon ITIN number as an Amazon seller.

  • The ITINs were first created in the year July 1996 and only with the purpose of taxation. They were created for the purpose of applying a tax to the foreigners despite their migration status. Hence, requiring foreigners to pay the taxes that they are required to pay, legally.

 

  • The ITINs hold a great deal of importance as they allow the IRS to collect billions of dollars in terms of a tax deduction. This deduction serves as revenue to the U.S. government. Also, this revenue would not have been possible for the U. S. government to earn in any other way.

 

  • There is a misconception that an ITIN is a work permit to an immigrant. However, an ITIN neither grants a legal status nor any work permit to an immigrant.

 

  • It is simply a way to make more people a part of the U.S tax system. For example, the federal government earned over $870 million in terms of income taxes in the year 2010, from over 3 million people that were holding the ITINs.

 

  • As per the statistics, the illegal migrants contribute the most towards the U.S. government. For instance, in the year 2012, the tax collected ranged from around %3.3 billion in California to $3.2 million in Montana.

 

  • It is a misconception that all the ITIN holders are eligible to the same level of benefits. An ITIN does not allow an individual to receive the exact same benefits as of the U.S citizens. Similarly, an ITIN holder cannot claim the benefits of Earned Income Tax Credit (EITC) or of social security.

 

  • Some people assume that an ITIN is a tool or a device to keep a track of the unauthorized migration; however, it is just a way that allows an individual to pay the taxes on time. Similarly, an Amazon ITIN number only serves as a way to avoid the withholding tax deduction and provide an easy way to start an eCommerce business in the U.S.

 

  • The section 1603 of the IRS (internal revenue code) suggests that the IRS is not permitted to release any kind of personal information of a taxpayer to some other government agencies. However, this can only be allowed in the case of a court order that is related to a criminal investigation.

The Eligibility Criteria to get an Amazon ITIN number

There is no hard and fast rule to get yourself eligible to get an Amazon ITIN number, however, it is necessary that you do not hold a social security number already, neither do you qualify to possess one.

In order to assist you further, let’s us have a look at some more of the qualifying factors;

  • An individual filing a tax return in the U.S. who is an alien resident (that depends on the number       of days a person has stayed in the United States)
  • An individual who is required to file a tax return (a U.S. based) and is a non-resident alien
  • Any of the dependents or a spouse of a resident alien
  • In the case of the non-resident alien, the dependants, and spouse of the person.
  • An investor (foreign) who has the money invested in the U.S. based business or especially in the U.S. real estate market.
  • The real estate brokers who support the unauthorized aliens with the mortgages.

If you do fit in any of the above-mentioned categories then you are perfectly eligible to file a tax return (based on the regulations of the U.S. tax treaty). In the case that you live outside the U.S. and sell eBooks on Amazon, then you have to apply for an Amazon ITIN number as an Amazon seller. This is also necessary in order to claim a tax refund.

However, you should know that in the case you have already applied for an SSN (Social Security Number); then you cannot apply for an Amazon ITIN number. Hence, legally, a person is not eligible to possess both SSN and ITIN at the same time.

Similarly, in the case that you are a non-resident alien, this might be helpful to know that the tax law in the U.S. prevents the IRS from disclosing or sharing the confidential tax information with any other government agency. This may include the department of the homeland security as well. Hence, ensuring that, the mentioned department is not entitled to initiate a procedure for removing you or your family in anyway.

What are the Benefits of acquiring an ITIN/Amazon ITIN NUMBER?

More than just getting an access to Amazon and initiating your eCommerce business with an Amazon ITIN number, there are numerous benefits for which you should opt for an ITIN number as an Amazon seller. Read these advantages below to know what benefits you are about to get as soon as you get hold of your Amazon ITIN number.

With an ITIN, you can easily pay your taxes

Without possessing an ITIN, not only you are unauthorized to pay the taxes but you will also face several legal entanglements. It is always easier to file a tax return and to claim a tax refund eventually if you hold an Amazon ITIN number. Also, it allows you to get hold of the various legal matters and to entitle you and your family to the array of benefits attached to it.

It’s easy to open a bank account

Holding an Amazon ITIN number gives you a chance to open multiple bank accounts across the United States. They may be interest-bearing accounts or otherwise. After observing the global economic meltdown in the year 2008, this will especially help in boosting the economy.

 

You will be eligible to claim child credit

Did you also believe in the misconception that child tax credit can only be claimed by the person who holds the SSN (social security number)? If yes, then it’s time to correct this belief. Child tax credit can easily be claimed by a person holding an ITIN as well. However, for this, the child has to be 17 years or less in age and also, they must have lived with you for more than 6 months of the present year.

This will help you in building a good credit history

An Amazon ITIN number allows you to get a credit card or apply for a loan. This particularly helps in establishing a good credit history which in turn proves to be really beneficial in terms of getting bank loans for business in the near future.

It will help you in applying for residency in the United States

An ITIN immensely helps in changing the immigration status once you apply for residency in the U.S. In the view of the U.S. government, a person who holds an ITIN is termed as a law abiding citizen. This further provides many benefits in return. For instance, one of the many advantages is that it makes it easier to apply for a social security number (SSN) later in the future.

It’s a way to document your work and residency in the U.S.

Since filing a tax return can be used to document your existence and the employment in the United States hence, with an ITIN, you can easily obtain that. This will eventually make you entitled to citizenship in the U.S. Moreover, this will serve as a proof to the authorities that you have not only lived but have also worked in the U.S. for a specific period of time.

You become entitled to Healthcare coverage

In the case that you are an illegal immigrant who holds an Amazon ITIN number and have kids born in the U.S, then as per the Affordable Care Act, they are qualified and eligible to get healthcare coverage in the United States.

 

Get rid of the withholding tax

When an immigrant worker does not hold the ITIN number, he/she end up paying a great amount of earned money as a withholding tax. But you can simply avoid the situation by having an ITIN number. Moreover, immigrants who receive the late payment as a result of a dispute with the employer will no longer require paying the high level of withholding tax if they have an ITIN.

It is easier to get a Driver’s license as an ITIN holder

Since a social security number (SSN) is required to qualify for a driver’s license, in the U.S., an ITIN can also be used in the place of an SSN to obtain a driving license, driver’s permit or the state identification card.

Hence, in order to avoid the hurdles like visiting court regularly or being threatened with lawful action, it is always safer to opt for an ITIN. This is to notify the U.S. government that you obey the federal tax laws. Also, that you contribute to the U.S. economy through filing tax returns.

What are the ways to apply for an Amazon ITIN Number?

Once the eligibility criterion is fulfilled and you have understood the advantages of an ITIN, then it’s time to submit an application for it. This may be done;

  • In-person
  • By mail
  • Via IRS acceptance agent

1.    By Mail

Since you need to download and print the W-7 form from the IRS website which records the biographical data, don’t forget to check the correct box out of the 8 boxes (‘a’ to ‘h’) on the application. This will determine your reason to submit the W-7 form. Non-resident aliens need to check the ‘a’ and ‘h’ boxes to get the tax treaty benefits.

However, to avoid getting a temporary Amazon ITIN number, make sure to check the boxes correctly. Afterwards, attach the valid tax return with the W-7 application along with supporting documents like your passport. You will also be required to provide the official letter of Amazon to submit with the application of ITIN. Finally, mail the completed application to IRS. Once the application is verified, you will be eligible for an ITIN and will receive it within the next six weeks.

2.    In-Person

You can also submit the W-7 form, tax return and the supporting documents at any IRS Center in the U.S. or abroad. A valid RIS Taxpayer Assistance Center then validates the national identification documents and passport. Once done, the application will be sent to the main IRS center in Austin, Texas for further proceedings and your documents will be returned on the same day.

3.    Via IRS Acceptance Agent

An application for an ITIN can also be submitted through the acceptance agents abroad. This agent will help you in filling the W-7 form, verifying the original documents and identification documents (certified copies). The agent then submits the application after attaching a certificate of accuracy and identification documents with the form W-7. Once you receive the ITIN number, you will have to enter the number on the Amazon’s online tax interview form.

Take Action!

Most people spend a lot of time to dig out the relevant information to obtain their Amazon ITIN number. However, with the information shared above, you can now easily get your own Amazon ITIN number to kick start your eCommerce business today, successfully!

If you need help in getting an ITIN number to start selling on Amazon, please call us at 407-344-1012, or email us at info@freedomtafl.com.

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