tax id

Misconceptions Regarding ITIN Numbers

When it comes to ITIN (Individual Taxpayer Identification Number), a lot of people think it’s a number similar to SSN (Social Security Number). As a matter of fact, ITINs and SSNs are not interchangeable. They both have their own facts and figures, and an individual can only have either one of them. IRS (International Revenue Service) uses this number to identify and maintain a record of every individual who has certain tax implications and is not eligible for a SSN.

ITINs are issued to U.S residents as well as the non-residents who are obligated to pay taxes by law and do not fulfill the SSN criteria. One very important point to note is that SSN is only issued to U.S residents. An individual is a non-resident or alien unless he/she clears the green card test or the substantial presence card for the calendar year.

People who must pay taxes and are not eligible for SSN;

  • S residents filing a U.S tax return. (like a foreign-born student)
  • Spouse or dependent of a U.S citizen or a permanent resident.
  • Spouse or dependent of a legal immigrant on a temporary visa.
  • Non-resident filing a U.S tax return. (like an individual who invests or owns a U.S business and receives income in U.S currency and is living outside the U.S)

There’s another misconception that ITIN holders receive all the tax and public benefits just like other U.S residents or the SSN holders. Actually, ITIN holders have no EIC (Earned Income Credit) benefits and neither does their immigration status change. However, if in future an individual becomes eligible for a SSN, via legalizing the status, he/she can get all of the benefits.

ITIN can be used to open interest-bearing accounts and can also be used to receive state I.D card, driver’s license as well as driver’s permit. A lot of non-residents also think that an ITIN number gives them work authorization. This again is a misconception and can never be used for such purposes in any circumstances.

In order to apply for an ITIN number, applicants are supposed to fill out a W-7 form and submit the relevant tax return. Along with these, the applicant is required to attach a set of documents to prove their identity. You can only use the following list of documents;

  • Passport (in case of passport, there’s no need to attach another supporting document)
  • National identification card (must show photo, name, current address, date of birth, and expiration date)
  • S. driver’s license
  • Civil birth certificate (required for dependents under 18 years of age)
  • Foreign driver’s license
  • S. state I.D card
  • Foreign voter’s registration card
  • S. military identification card
  • Foreign military identification card
  • Visa
  • S. Citizenship and Immigration Services (USCIS) photo identification
  • Medical records (dependents only – under 6)
  • School records (dependents only – under 14, under 18 if a student)

IRS makes sure that the personal data of the ITIN applicants and ITIN holders is not shared with any other agency and is protected at all times. If they’re not doing their job well, the applicants will hesitate applying in the first place and this will simply kill the motive of issuing ITINs.

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.

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