A stereotype is found across the United States of America that illegitimate or non-citizens from other countries do not pay the taxes on their earned revenue to the government. Individuals who are legal nationals in the US don’t even know about an ITIN or how to get ITIN. ITIN stands for Individual Tax Identification Number and most of the citizens are very less informed about the function of ITIN and its vital contribution to the US taxation system. This mostly happens because nationals do not require an ITIN for themselves as they use SSN – Social Security Number for paying taxes on their earned income and that is why they don’t know how to get ITIN.
Every individual residing in the United States of America is always concerned about taxations and finance issues. This concern raises a common question of how to get ITIN? People mainly choose to reside in the United States of America because it is a very profitable state and has a well established economy. One can easily set up their own business or find a suitable job that will pay them well. But doing business in the states requires an investor visa. The investor visa enables an individual to enter and work in the United States of America and manage the investment that he or she will be making while residing in the country.
Individuals who are not permanent citizens of the United States of America cannot obtain one of the taxpayer identification numbers known as SSN – Social Security Number. So that is why they have to get an ITIN and for this purpose they should be well aware about how to get ITIN. It’s not that the local residents cannot obtain an ITIN. This taxation processing number is also for the residents but only in some specific circumstances. It’s certainly not an easy procedure to get an ITIN; it takes quite a long time, effort and a bit of research for the whole process to go smoothly. So, carry on reading to know more about how to get ITIN.
What is an Individual Taxpayer Identification Number – ITIN?
First and foremost you should have clear concepts about an ITIN number so that you know what it is all about. You should be well informed about, what is an ITIN, why is it required, what is the purpose of it, how to apply for it, what are the benefits that you get and so on, if you are required to have an ITIN number. This detailed research will help you in getting a better understanding on how to get ITIN. An ITIN is a tax ID number and it was formed for all the tax-related purposes. IRS – the Internal Revenue Service of the United States of America created this taxation processing number in July 1996 to aid the nationals of other countries residing in America. ITIN was formed for foreign state nationals and all other people who could not get an SSN – Social Security Number. So ITIN helps the non citizens and other individuals to pay the information returns and taxes of the state that are legally inflicted on them.
Difference between ITIN, SSN and EIN:
In the process of knowing more about how to get ITIN, you also should be known to the fact there is a lot of difference between ITIN, SSN and EIN. ITIN is mainly for the non US citizens and those who are nationals of other countries.
But the SSN is the social security number that has nine digits in its format, like this xxx-xx-xxxx. The SSN number is mainly for the citizens of America; any individual that is permanently residing in the US will get an SSN number.
The third ID number is the EIN – Employer identification number. The EIN is required by any business entity which pays its employees or files any taxes of the business. The SSN and EIN are also different in terms of the format. EIN also has nine digits in it, but in a form like this, xx-xxxxxxx.
ITIN is obligatory:
Paying taxes in the US is a must for every individual. Thus, you must have complete knowledge on how to get ITIN, no matter if you are a permanent citizen, a non-local, an immigrant or even a non-resident alien.
ITIN for immigrants in the US:
It does not matter if you are an immigrant in the US, you have to pay your taxes to the government. You cannot work in the U.S without paying taxes on your revenue. It is an obligation for every individual employed in the US to pay the tax on his or her earned revenue from the job regardless of the fact that you are an illegitimate resident in the US. For this purpose you must know how to get ITIN if you are an immigrant in America. If you are an unlawful resident then you are not entitled for the SSN – social security number because only legal residents can pay their taxes using an SSN. Therefore, you have to get an ITIN for yourself. Getting an ITIN being an immigrant also helps in your immigration procedure. If you remain punctual in paying your taxes then it will be a sign of your good moral character in front of the government.
Why is ITIN required?
Getting concerned about how to get ITIN is not enough as you should also know about the need of getting an ITIN. The solitary reason of getting an ITIN is to pay your government taxes. ITIN was introduced by the IRS to help the residents in paying their obligatory taxes to the government who are not entitled for the SSN. IRS created ITIN because there are a huge number of non-citizens, non-resident aliens and immigrants in the US who are studying, working or doing business in the country. There should be some kind of law that should allow these individuals to pay the taxes. Otherwise the economy will face an enormous set back if they don’t receive tax s from this large amount of people without having SSN. An ITIN is necessarily required as it aids the individuals in abiding by the taxation laws within the US. An identification number will benefit you if you want to get a refund of your revenue kept inoperative by the IRS.
Does the government track immigrants through ITIN?
Mostly immigrants fear for their illegal status getting exposed to the immigration authorities. But with ITIN there are no such issues. Immigrants can fearlessly abide by the tax laws and pay their taxes regularly because the Internal Revenue Service-IRS does not have a policy of giving out the confidential information of the immigrants to the immigration bureau. IRS receives a big quantity of private information of the individuals that is why it is highly responsible of securing their personal data. Thus, the basic reason of ITIN system’s success is the confidentiality and security that is provided by IRS.
While getting to know the procedure of how to get ITIN, you should keep this in mind that ITINs are not used for any other sort of purpose apart from allowing you to pay taxes. But there are a few circumstances in which ITIN will serve the purpose of an SSN for instance:
To open a bank account:
Individuals who are not qualified for an SSN but they have an ITIN of their own can open a bank account using their ITIN instead of SSN.
To receive your driving license:
Some states have allowed the ITIN to be used instead of an SSN in order to receive a driver’s license, driver’s permit, or state identification card.
To give proof of residing in the US:
Maybe one day an immigrant will need to prove that he or she is a resident in the US and an ITIN will help you at that time. Immigrants can prove that they abide by the US taxation laws and regularly pay their taxes through showing their ITIN.
Individuals who need an ITIN:
Other than the immigrants, resident nationals from other countries and non-resident aliens, there are few more people who are entitled to get an ITIN and thus they must know how to get ITIN. Read on to see the list discussed below:
- ITIN is a must have for the spouse of a resident alien or anyone who is a dependent in the United States of America.
- ITIN is also needed for the spouse of a person who is not an American national and has a visa. The same goes for anyone who is dependent on that individual.
- ITIN is required for any resident of the US to file for the tax return for the number of days they stayed in the US.
- Any person, who invests in business in the US and makes handsome income out of that business legally, then he or she needs an ITIN number to pay the taxes.
- If an individual is studying in any educational institute within the US but does not have the country’s nationality then it is necessary to get an ITIN number.
- The spouse or any person who is dependent on a permanent citizen of the US can also have an ITIN number.
How to get ITIN being a non resident individual in the US:
As you have got a clear concept about the nature of an ITIN – Individual Tax Identification Number, the benefits that ITIN offers, the people who are entitled for it and its need, now you should know about how to get ITIN. Read the following important steps to know more about how to get ITIN:
Any individual who wants to get an ITIN number should firstly find the most recent version of the W-7 form as per the changes made in the US tax law by the IRS – Internal Revenue Service. Once you find the newest version of the form, the next thing that you have to do is fill the form.
The next step that you need to know about how to get ITIN is to fill the application. You will need assistance from a lawyer for this purpose because filling the application is a very critical process. You will find many complex terms in the application so it’s better to fill it with the guidance of a qualified and proficient lawyer.
Once you fill the w-7 application with the help of a lawyer, the third step of getting an ITIN involves the attachment of a proof of your revenue tax return till you fulfill the conditions for the exemption.
After knowing about attaching the tax return proof, the next thing you need to know about how to get ITIN is the attachment of your original document that shows your overseas status and your identification proof given by the issuing authority.
Once you fill the W-7 form and attach all the required original documents, the last thing you have to do is to send the application to the department of ITIN in the office of IRS – Internal Revenue Service. Send your application through mail or other alternative ways indicated by them.
How to get ITIN through other methods?
Now that you know much about how to get ITIN through the W-7 application method, you might want to know about other points on how to get ITIN. The W-7 application method is no doubt the most common and easy method of getting an ITIN but there are few alternatives as well. Some applicants find other methods to be more convenient for them to get an ITIN number. Read on for other substitute methods:
How to get ITIN through the acceptance agent:
Acceptance agents can file for the ITIN number on your behalf as these are the people who have the responsibility of rechecking and viewing all the documents submitted by you. Remember that you have to register in the acceptance agent program and then leave it to them. The agents will check your form, review your documents and will file for your ITIN.
How to get ITIN through tax payer help centers?
Other than mailing the W-7 form to IRS or filing your application through an acceptance agent you can also obtain your ITIN number by yourself. IRS has established many help centers throughout the country in order to assist tax payers. This method is a bit similar to the W-7 form method, the only difference is that here you have to fill out your application, attach all the relevant original documents and send them to the nearest taxpayer help center. You just have to find the list of all assistance centers near to your residence.
How to get ITIN through mail?
You can also get your ITIN number through mail and the ease of this method makes it the most used method out of all. It is certainly the most convenient method; just fill out your form with the help of a qualified lawyer, attach all the relevant original documents required and submit everything to the email address of the IRS office’s ITIN department.
These are the possible ways of getting your own ITIN number. You may choose to use any one out of them. But before that, you must know about the relevant documents that you need to submit to the IRS along with the W-7 form.
Documents to be submitted for the ITIN:
It is important to know about how to get ITIN through different methods. But you should not only focus your attention on how to get ITIN but also to the documents that need to be submitted along with your application. It’s not just the form that needs assistance of a proficient lawyer but the relevant documents can also give you a tough time. It is vital to arrange all the required documents properly in order to get your ITIN number from the IRS. Down below is the list of complete documents that are required to be submitted to the IRS.
- Your W-7 form.
- Your original legal tax returns
- Original documents from the issuing agency supporting information given in your W-7 form
(Provide certified copies if you do not have original)
- Your Passport (if you provide your original valid passport then it will be enough to prove your foreign status or identity)
- Your National Identification Card
- Your national Birth Certificate
- Records of your education (applicable only for dependents under 14 years and 18 years if studying in the US)
- Your medical testimonies (applicable only for dependents under 14 years and 18 years if studying in the US)
Hope now you know every possible detail about how to get ITIN. You are all set to go ahead and apply for your ITIN number and start abiding by the US taxation laws.