Whenever a business owner wants to start a business in the United States, they are required to get an E2 visa. This E2 visa permits them to develop and direct a business in the United States. But when they want to bring their family to the United States, you may find them asking about how to request an ITIN number. This is because they require an ITIN number for any member of their family. ITIN numbers are necessary tax ID numbers that are required by dependents of the capital investors.
While capital investors are required to pay their business taxes, the dependents living with them are also required to pay taxes. ITIN numbers allow dependents to live peacefully, open bank accounts, and enjoy tax benefits too. While some people may need an ITIN number because of capital investors, some people who do not have American residency yet also require an ITIN number. United States residents usually get SSN numbers, but when one is unable to get it, they opt for ITIN numbers and ask about how to request an ITIN number.
Though the process of applying for an ITIN number is easy, it can become complicated if you do not know how to request an ITIN number and the procedure behind it. If you do not know the process of applying and are asking around about how to request an ITIN number, you have come to the right place! You will find all the details as to how to request an ITIN number in the United States.
An ITIN Number is a Form of Tax ID Number
Before we go into the details of the question, how to request an ITIN number, you first need to know that the ITIN number is one of the main types of Tax ID numbers. A tax payer Identification number is a number that is used by the Internal Revenue Service (IRS) with regards to the tax laws. Depending on the tax ID number, the IRS issues one which is compliant to the tax administration and laws.
If you are asking about how to request an ITIN number, you should also keep in mind that there are 5 main types of Tax ID numbers; ITIN, SSN, EIN, ATIN, and PTIN. The first 3 types of numbers are active while the last 2 are inactive. All the tax ID numbers serve a similar purpose, but each and every tax ID number is different, depending on the individual.
An ITIN is an Individual Taxpayer Identification Number issued to individuals for tax processing purposes. They contain a total of 9 digits and are available for non-residents, dependents, and all those who are not able to get a Social Security Number. This is why so many people who are capital investors in the United States are asking about how to request an ITIN number. The ITIN numbers are issued by the IRS to all those who have applied for one. The process is simple and if you want to know how to request an ITIN number, all you need to do is to fill Form W7 to obtain the legal identity of being the US individual.
By filling and obtaining the ITIN number, you can legally live in the United States. Also, this number serves as proof to declare you a resident of the United States.
In addition to the ITIN number, the Social Security Number (SSN) is also one of the main types of Tax ID numbers and is granted to US residents only. This number is granted by the Social Security Authority (SSA). An SSN is a number for all the residents of the United States and grants authority to the individuals to open a bank account, pay taxes, and be considered as a resident of the United States. To apply for this number, all you need to do is to fill out the SS-5 form and apply. You will be granted the number by the Social Security Authority. In addition to this, such numbers are only granted to individuals.
Additionally, an Employer Identification Number (EIN) is also one of the types of the tax ID numbers. If you are asking about how to request an ITIN number, you need to know that it is somewhat different from an ITIN and SSN number. EINs are numbers that are provided to those who are looking forward to direct and develop a business or a United States enterprise. You can apply for this EIN number using form 1041. You will be issued this number directly from the Internal Revenue Service (IRS).
Why Do You Need an Individual Taxpayer Identification Number (ITIN)?
Before understanding the details of how to request an ITIN number, you need to know why you need an Individual Taxpayer Identification Number (ITIN). If you too are asking about how to request an ITIN number, you also need to read this section carefully.
- You will require an ITIN number for filing tax returns.
- You will be permitted to open a bank account using the ITIN number.
- You will be able to file your taxes and claim dependents in Mexico, United States, and Canada.
- You can get a refund on your income withheld by the Internal Revenue Service if you qualify.
So, if you think that having an ITIN number offers, you are wrong. It offers a lot of benefits to the holders. For starters, it helps providing you a refund on your taxes. Therefore, applying for an ITIN as a dependent is a smart option. While those where the highlights as to what an ITIN does and who needs it, you also need to know that the ITIN number is unable to do the following;
- An ITIN number does not provide eligibility to work in the United States
- An individual holding an ITIN number is not eligible for a SSN.
- You will not qualify for the Earned Income Tax Credit Purposes.
What is an ITIN used for?
If you are asking about how to request an ITIN number, you first need to understand what the ITIN number is used for. The ITIN Number is used for general tax reporting purposes. It is not intended to serve other purposes than this. Helping individuals comply with US tax laws, ITIN numbers also provide efficient means for those who are not eligible to get a SSN.
Do You Really Need an ITIN Number?
If you want to know about how to request an ITIN number, you should first understand that only a non-resident alien is eligible for an ITIN number. Also, those people who do not qualify for getting an SSN number can also request for an ITIN number. Some other people who may need an ITIN number include the following;
- A US resident alien who requires filing a US tax return based on the number of days he/she stayed there.
- A non-resident alien who is required to file a tax return in the US.
- A spouse or dependent of a non-resident alien visa holder.
- A spouse of dependent of a United States citizen resident alien.
How to Apply for an ITIN Number?
If you want to learn about how to request an ITIN number, you need to know that there are certain steps for you to follow. The process is simple and is not very complicated, but the time consuming part is filling the form. The form contains some complex portions that may not be easily understood by a common individual requiring about the process of issuance of an ITIN. Therefore, it is wise to hire a credible lawyer and fill the form by taking their help.
If you want to know about how to request an ITIN number, you need to read this section very carefully. Check out the steps below to get an ITIN number.
- Step # 1: The first step is to get hold of Form W-7; there are 2 versions of the form available. However, it should be noted that the older version is no longer accepted by the IRS. So, you need to ensure that you fill the right one. Get the latest W-7 form and fill it properly. You can get it from the online website of the IRS as well the IRS office.
- Step # 2: The next step is to attach the valid income tax return if you qualify for it, along with all the necessary documents mentioned. There is a list of 13 documents which are required to be attached with Form W-7, which we are going to discuss in the next section.
- Step # 3: The third and last step is to attach your ITIN application and mail it to the IRS, or fill it online and send it. No matter which way you choose, you should do it carefully. Normally, people send it via post and mail. If you are also using this procedure, you also need to mail it on this address; Internal Revenue Service, Austin Service Center, ITIN Operation, P.O. Box 149342, Austin, TX 78714-9342.
- Step # 4: After sending it to the Internal Revenue Service department, you need to wait for the IRS’ approval. After the documentation sent is approved by them, you will get your ITIN number via mail or by visiting them in person. It will probably take a week; time is only consumed in verifying and inspecting the documentation provided.
What are the Options to Get an ITIN Number?
You can file Form W-7 in several ways. You should also include certified copies from the issuing agency when filing your form and need to ensure that everything you write is correct and genuine. You can mail your W-7 form using 2 ways.
· Option No. 1: Apply Online
One of the best and simplest methods is to apply for an ITIN number online. If you are asking about how to request an ITIN number, you should understand that you can easily fill W-7 form from the IRS website (make sure you download the latest one) and fill it carefully. Applying online also saves time and money as you don’t need to travel to do so.
· Option No. 2: Apply via Mail
One of the mainstream and very old methods is of applying via mail. The post mail method has been around since years and can never get old. In fact, it is the easiest one and can be helpful in filling information. An individual filling the form can ask the IRS representative then and there if they find any complications in the form.
Still, if you find it difficult and complex, you can fill it by hiring a credible lawyer and seeking their help. By ensuring that you do not make any mistakes, lawyers can help you fill the form seamlessly. Send it to the address mentioned above by filling in genuine details.
· Option No. 2: Apply In-Person
If you are asking about how to request an ITIN number, there is another way to do so as well. In addition to applying via mail, you can apply in-person. You can personally go to the IRS representative and get your form filled. This is also an old practice and people who are really confused opt for this option.
Another advantage of choosing this option is that it prevents the chances of mistakes occurring. When you fill the form right in front of the representative, they will ensure that everything is in order and written correctly. Apart from this, you may get your ITIN in just a few hours if you opt for this method.
· Option No. 3: Apply via Phone Call
Next in the list of options is calling the IRS representatives through phone. You can call the IRS department and ask any one of the representative to help you in filling the form. They will dictate every single detail to you and you will be able to fill it properly. Though there can be barriers in communication, this problem is very rare. Additionally, filling W-7 form via phone call is not a common practice. Those who cannot mail or apply online usually follow this practice.
What Documents are Required for Getting an ITIN Number?
When you apply for an ITIN number, you will need to fill Form W-7. You will also have to attach a number of documents (copies) to get an ITIN number successfully. Ensure to provide all the documents which should be arranged in order so that you get your ITIN number soon. If you do not provide all the 13 documents, you will have to repeat the process again. Therefore, for a positive result first time around, you should make sure that the following documents are attached;
- US Driver’s license
- National Identification Document (it should be current and should include your photo, name, date of birth, address, and the document’s expiration date)
- Foreign driving license.
- State ID
- Birth certificate (this is for the dependent if the passport has been submitted)
- Visa issues by the department of the State
- Foreign Voter’s Registration Card
- Foreign Military ID Card
- US Military ID Card
- Medical documents (this is only for children under the age group of 6)
- School records (for children under 18 years of age)
- United States Citizenship and Immigration Services photo ID
Ensure to provide all of these documents so that you do not need to go over everything all over again.
How Long Does it Take?
No matter which way you opt for, you will surely get your ITIN number as soon as soon as all your information, documents, and other related stuff is considered to be genuine. The maximum time period to get your ITIN number is 7 weeks. It may take months, but you will be able to enjoy a number of benefits later on.
Benefits of an ITIN Number
Now that you know about how to request an ITIN number, you should also know what benefits you are going to enjoy after getting an ITIN number in hand. Check out some benefits below;
- The foremost advantage is that an ITIN number allows you to pay off taxes and file tax returns. Without this, you will not be able to file taxes and may not be considered a legal residence of the United States.
- In addition to filing tax returns, you will be able to open a bank account too. With a bank account, you will be able to make transactions. Also, more and more Americans are now opening bank accounts, a major factor in the boost witnessed by the economy since 2008.
- There has been a common myth that the child tax credit can only be claimed through the Social Security Number and not by the ITIN number. This is false. Therefore, if you do not have an SSN, you can also claim your child’s tax credit using an ITIN number.
Now that you know about how to request an ITIN number, we hope you will be able to apply for an Individual Taxpayer Identification Number (ITIN) seamlessly and without any hassle. Good luck!