tax id for illegal immigrants

Can an Illegal Immigrant Get an ITIN Number

Many of you may want to start a business in the US but may or may not have the resources to do so. United States is considered as a utopia to start a business as those who do have the opportunity to enjoy several benefits. Though setting up a business in the United States comes with difficulties and is a complex procedure, it all becomes worth it once you have gone through these steps and have successfully formed one. As a result, you are now bound to pay taxes, file returns, and making sure you comply with US laws when conducting business operations.

If you need help getting an ITIN number please call us at 407-344-1012, or email us at info@freedomtaxfl.com.

That being said, some principal investors who settle in the United States for business purposes also want to call their families for living together. That makes it obligatory for them to get a tax ID number for them. This is why some principal investors are found asking, “Can illegal immigrant get an ITIN number?” Well, they need to because after calling the dependents to live in the United States, they will also be subjected to pay taxes as per the US laws.

There is a common myth that illegal immigrants do not pay government or state taxes, which is not true. Everyone within the United States has to pay taxes. This is also one of the reasons why so many undocumented workers can be found asking, “Can illegal immigrant get an ITIN number?”

If you want to know the answer to this, read on carefully.

Overview of Individual Tax ID Number

Before we move on to explaining the process of can illegal immigrant get an ITIN number, you also need to know that an Individual Tax ID Number (ITIN) is one of the necessary tax ID numbers for those who are nationals too. In the United States, Tax ID numbers are of 3 different types; the Social Security Number (SSN), Individual Taxpayer Identification Number (ITIN) and Employer Identification Number (EIN).

Among these 3 tax ID numbers, ITIN numbers are required for illegal immigrants or dependents of the principal investors. It is a 9-digit code issued and granted by the Internal Revenue Service (IRS). All those who are asking, “Can illegal immigrant get an ITIN number?”, need to know that it is provided to the ones who are dependents and are not allowed to legally work in the United States. Hence, illegal immigrants can get an ITIN number.

To obtain an ITIN number, you need to fill form W-7 properly. The process is not very lengthy, but it has some complex and complicated questions that may require seeking help from your attorney.

Ensure to fill all the correct details so that your application for the ITIN number does not get rejected. Soon, after your application will get approved by the IRS, you will receive an ITIN through the same source you used to apply for one.

Some Facts and Information about Individual Taxpayer Identification Number (ITIN)

As mentioned above, there is a common myth about ITIN numbers and illegal immigrants that they need not pay taxes or file tax returns in the United States. This is not true. All people living in the United States, whether they are living legally or illegally, are liable to pay taxes.

You need to know that as an illegal immigrant of the United States, you do require an ITIN. Those who are legally living in the US and have a green card or are permanent residents are required to have either an Employer Identification Number (EIN) or a Social Security Number (SSN).

Along with the misconception of ITINs, people asking, “Can illegal immigrant get an ITIN number?”, may not even have enough knowledge about ITINs in the first place.

·       Required for Filing Taxes

One of the main aims of issuing an ITIN is that they are given to dependents or illegal immigrants to file taxes. This program was started by the IRS in 1996 for illegal immigrants and foreign individuals as such individuals are not eligible for getting a SSN but do have to pay off the taxes.

·       Different from Other Tax ID Numbers

In addition to filing taxes, ITINs are different from other tax ID numbers. The other 2 types of tax ID numbers, the Social Security Number (SSN) and the Employer Identification Number (EIN), are for the legal residents. Though all 3 tax ID numbers comprise of 9 digits, they vary in terms of their application procedures. SSNs are obtained by filling form SS-5 while an EIN can be taken from the IRS by filling form SS-4.

·       Eligible for ITIN Number

The ones who are concerned about the question, “Can illegal immigrant get an ITIN number?”, need to read this section carefully. Several dependents in the United States have an ITIN as these individuals are the ones who are not legally authorized to work in the United States though they can only reside and enjoy some of the benefits coming with ITIN number. Here is the list of the people who are considered eligible to obtain ITIN number.

  • A dependent or spouse of a foreign investor who is on a temporary visa.
  • A dependent or spouse who is a lawful resident of the United States.
  • A foreign student in the United States.
  • A non-resident alien who invests in the United States and takes advantage from a US-based business while living in their own country.

·       Restriction to Work

As mentioned above, an ITIN is given to foreigners or illegal immigrants simply because they need to pay taxes and file tax returns. This being its primary and core aim, illegal immigrants are not given work authorization in the United States. One needs to prove their permanent identity before directing or developing a business or getting employed. On top of that, you also need to obtain an E2 visa for legally working in the United States.

·       Enjoy Some Tax Benefits

That said, Illegal immigrants can also enjoy some benefits. Though the ITIN does not give them the leverage to enjoy all the tax benefits which come with having a SSN and EIN, it does offer some advantages, such as Earned Income Tax Credits (EITC). Other than tax benefits, illegal immigrants can also enjoy other benefits, which takes us to our next point.

·       Helps Getting a Driving License

As mentioned above, there are some more advantages other than tax benefits. One of them is that the illegal immigrant can get a driver’s license through an ITIN so that they can enjoy the benefits of driving around the United States. Providing you with the opportunity to lawfully drive in the United States, an ITIN can help you get State’s driving license easily. However, this is applicable only in some states as some of them do not grant this permission to foreigners.

·      Helps Opening a Bank Account

Though there are certain limitations and restrictions attached to holding an ITIN, it helps a foreigner in opening up a bank account too. Using the ITIN number, you can easily open an interest bearing account for making transactions whenever required.

·       Child Tax Credit (CTC)

In addition to providing tax benefits, helping one open a bank account and getting a driving license, illegal immigrants can also get child tax credit. This is a type of tax credit that is available in some states. The credit depends upon the number of dependent children. You can claim for full credit if you are making less than $110,000. It can be worth more than $1,000 for each child. As per research, more than 4 million dependent US families take advantage of child tax credit.

·       Private Process

When it comes to applying for an ITIN to the IRS, privacy matters the most. The process has been designed really carefully and can help you apply easily. The IRS knows how valuable and private your personal information is; therefore, they have dedicated an entire section to it. Section 6103 of the Internal Revenue Code determines everything about it, with the IRS guaranteeing that all your personal information will be kept private and will not get circulated or disclosed.

If you need help getting an ITIN number please call us at 407-344-1012, or email us at info@freedomtaxfl.com.

Potential Benefits of an ITIN for Illegal Immigrants

·       Contribution

When illegal immigrants file taxes using an ITIN, it determines that they have a good character and are contributing to the betterment of the economy. According to studies, millions of people are contributing to the US economy and are helping the society by paying taxes regularly. In addition to this, paying taxes informs the government of the United States that illegal immigrants are obeying the federal taxes put in place.

·       Ticket to Becoming Permanent Residents

When illegal immigrants pay off the taxes in a timely and prompt manner, they portray a good image in front of the IRS by obeying the laws set in place by the federal government. When they have a good record in front of the government, there are chances that they may be given permission to live in the country. When illegal immigrants act responsibly, they can be rewarded with a legal status, making them permanent residents of the United States.

·       Prove Legal Status

In addition to the above listed benefits, when illegal immigrants are asked to prove their status, they can show their ITIN. Though SSNs and EINs are considered as legal proof, when illegal immigrants have a good record of paying their taxes promptly, they can graduate in status and become permanent resident of the US.

·       Economic Tax Claims

When you get the ownership of ITIN number, you get the ability authority to file taxes. Along with this, as an illegal immigrant, you may not be able to enjoy all the tax benefits though, but you can take advantage of the economic tax claims. Under this tax claim, child tax credit (CTC) comes at the top. This type of tax is for children who belong to the dependent investor family. Illegal Immigrants can utilize the child tax credit up to $1000 if the family is not earning up to $110,000.

·       Health Care Coverage

Along with the child tax credit (CTC), having an Individual Taxpayer Identification Number (ITIN) is necessary for all the illegal immigrants who are born in the United States. This is because your children will not qualify for healthcare coverage until and unless you have an ITIN. If you do not have it, apply for it now; otherwise, you will not be able to get the health coverage for your children. The healthcare insurance can be availed at full price using your ITIN.

Eligible to Receive the ITIN Number – Illegal Immigrants

Under the Internal Revenue Code Section 6109, every US residents or non-resident is required to pay taxes. This is a very important act to live in the United States as otherwise, the IRS will strictly punish and impose penalties on those who do not fulfill their tax obligations. Therefore, all those who are not the residents or are not eligible for getting an SSN should apply for an ITIN instead quickly.

Additionally, section 6109 further states that all residents and non-residents must ensure to fulfill all requirements which come with requesting for an ITIN. All those asking, “Can illegal immigrant get an ITIN number?” need to know that there is a United States Tax Guide for Aliens which they can read or take help from their attorney to understand US tax laws. At times, both residents and non-residents are required to receive an ITIN. This is because it may happen that even though the resident has given a substantial test and is unable to obtain SSN for some reason, they would require getting an ITIN for tax filing purposes.

Furthermore, you need to follow all the steps to apply for an ITIN. As mentioned above, there is a form for this. You need to fill Form W-7 carefully and attach all the necessary documents with it. You need to attach several documents with the form along with your original proof of identity and a copy of the issuing agency showing your status. Attaching all the documents and filling all the technical information is a bit complex while the rest is really simple. After ensuring that you have attached and filled the form correctly, you can send the form to the following address.

Internal Revenue Service

Austin Service Center

ITIN Operation

P.O. Box 149342

Austin, TX 78714-9342

It is necessary to ensure about everything in the form W-7 because the IRS will cross-check each and everything. If they find anything to be incorrect, they will reject your application. When you file the correct information and submit the form, the process becomes smooth and quick. Also, on finding that everything you have written and provided with the form is genuine, the IRS will provide you with the ITIN promptly and without any delay.

Final Word

It is simple; by hook or crook, everyone is required to get an ITIN. Be it an illegal immigrant or a resident, everyone is required to have a tax ID number or an ITIN for filing taxes. Now that you know the answer to, “Can illegal immigrant get an ITIN number?”, we hope it helps you in obtaining an ITIN for yourself or for someone you know. Good luck!

If you need help getting an ITIN number please call us at 407-344-1012, or email us at info@freedomtaxfl.com.

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