tax id

Do I Need An ITIN Tax Number?

It is an important question, particularly for all those who are residing in the US but are either foreign nationals or resident/non-resident aliens. An ITIN Tax Number is a unique identification number, assigned by the Internal Revenue Service, to individuals for tax purposes. Originally, all US citizens are required by law to obtain a Social Security Number. However, if an individual is a foreign national or a resident or non-resident alien, s/he is not eligible for a Social Security Number. In such an instance, the individual is required to obtain an ITIN Tax Number in place of the Social Security Number.

The purpose of an ITIN Tax Number is to allow more and more citizens residing in the US to file for tax returns. It facilitates tax filing and reporting, and allows the government to expand its tax base. Typically, if you fall in any one of the following categories, you are required to obtain an ITIN:

  • An individual permanently residing in the US but not a citizen;
  • An individual who has not passed the Green Card Test or the Substantial Presence Test;
  • Dependent(s) of an individual who is a resident citizen of the US, but not eligible for a Social Security Number;
  • Dependent(s) of an individual who is a non resident and is not eligible for a Social Security Number;

It is important for individuals to obtain an ITIN Tax Number as it facilitates tax filing and reporting. Every individual who is employed and earns an income is required by the US law to declare his or her income. However, those who are not eligible for a Social Security Number cannot do so. To counter this issue, and to bring more people under the tax net, the US law issues ITIN Tax Number so as to increase the total tax revenue.

Moreover, having an ITIN Tax Number can be beneficial for the ITIN Tax Number holders as well. The ITIN can be used, besides for tax filing, for the following purposes:

  • In several states of the US, an ITIN Tax Number can be used to open bank accounts. Although originally the ITIN Number is for tax identification only, recently it has started being used for non-tax identification purposes, like opening bank accounts. States like Phoenix and Illinois allow people to use ITIN Tax Number for identification for opening bank accounts. Similarly, ITIN Tax Number can be used to obtain credit cards as well. However, the state an individual resides in largely determines if the individual can use the ITIN Tax Number for these purposes.
  • If you have an ITIN, you are eligible to claim Child Tax Credit. If your child is under 17 years of age, and has lived with you for more than half of the current year, then you can claim Child Tax Credit on the basis of your ITIN Tax Number.
  • Having an ITIN Tax Number allows you to subsequently apply for immigration status, Social Security Number, and residency in the US. An ITIN Tax Number makes these processes easier, and provides a certain level of credibility to the applicants.

If you want to apply for an 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.


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