What is an ITIN?
An Individual Tax Identification Number is a nine digit number assigned to a person so their taxes can be filed and kept in record. Getting an ITIN is mandatory for everyone who is ineligible to obtain a Social Security Number (SSN) because they need it to pay the taxes liable to them as per the federal tax laws.
Why Do You Need An ITIN?
As mentioned above, you need to get an ITIN so the IRS can keep your taxes in record. You will essentially require an ITIN when you file for your annual taxes. Apart from this, you also need an ITIN to apply for any deductions or tax returns after you’ve filed your taxes.
An ITIN is also helpful when you’re opening an interest bearing bank account in the United States and in some states; you need to show your ITIN to get a driver’s license and permit or a State ID.
Who Can Apply For An ITIN?
The Internal Revenue System (IRS) can issue an ITIN to both residents and nonresident aliens living and working in the United States as both are required to pay taxes according to the Internal Revenue Code. A valid ITIN is required to file an income tax return. The people who can apply for an ITIN are:
- Residents of the United States living and working in the United States
- US resident aliens filing for a tax return in the United States – their taxes will be based on the days they spent in the United States.
- Dependents or Spouse of a US resident alien or a US citizen
- Immigrants to the United States who are not eligible to obtain a Social Security Number (and so have to pay income taxes)
- Non resident aliens who need to file for a treaty benefit
- Dependents or spouse of a non resident visa holder
- US residents who have an interest bearing bank account in the United States
- Anyone who has assets and/or investment in the United States or is in a foreign or US based partnership
- A student, researcher or professor filling for, or claiming a tax return
- Individuals who get distributions like dividends, annuities, royalties, etc
How to Apply For an ITIN?
To apply for an ITIN, you need to download and fill the W-7 form from the IRS’s website, and then you need to attach all the required documents needed and mail all of it to the IRS’s office.
What Are The Documents Needed to Apply For An ITIN?
When applying for an ITIN, you will be asked to display some documents to prove your foreign status and source of income. Some of the documents that you will need are:
- A copy of your US income tax return
- A passport
- Another valid document for identification that has your photograph
- An ID card or document from your country
- Your State ID
- A driver’s license issued in the United States
- A National Identification that includes name, photo, address, date of birth and expiration date
- Your Voter registration list from your country
- All the documents that you needed for your Visa
- Birth Certificate (In case of dependents who are unable to submit their passport or ID)
- All dependents need to submit their medical records
- US Citizenship and immigration Services photo Identification documents
- Dependents and students under 18 of age need to submit their school records
For How Long Does an ITIN Remain Valid?
An ITIN remains valid for 3 years from the date it was issued. After that, individuals need to have their ITIN re issued so they can file their income tax return and they should do it immediately after their ITIN expires to avoid missing the IRS tax deadline.
What is the Right Time to Apply for an ITIN?
While you can apply for an ITIN during any time of the year, if your ITIN has expired or if you have recently immigrated to the United States, it is recommended that you apply for an ITIN as soon as possible. This is because the IRS’s tax deadlines are in March and it takes a couple of weeks to process the ITIN number. If you delay in filing your taxes, then you will have to pay tax penalties as per the federal tax laws.
What Are The Benefits Of Applying For An ITIN?
- If you are an illegal immigrant, then filing for an ITIN changes your status to a legal immigrant and therefore increases your chances of being promoted to a US citizen, because by filing your taxes, you’re showing the government that you respect their laws and are serious about living in the country as a law abiding citizen.
- If you haven’t gotten a chance to submit your documents when you were immigrating to the United States, then applying for an ITIN gives you an opportunity to do so. This also applies if you have submitted incomplete or inaccurate information when migrating to the United States. Applying for an ITIN will allow you to complete all the incomplete details and helps you ensure that the government has all the required information about you.
- ITIN gives the government an insight into your professional and educational background which could help you in your citizenship process.
- Applying for an ITIN allows you to file for tax returns, deductions and grants. You will receive them if the IRS’s office considers you eligible for it. But you still need an ITIN to apply for them.
If you are doing your duty by paying your due taxes and respecting the law of the country, the government of the United States will do what it can to help you out in terms of subsidies, health care, accommodation and education.
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.