You would probably creep out if I told you to tin up yourself.
But don’t worry I’m not asking you to lock yourself up in an iron box rather I’m talking about the taxpayer identification number (Tin). What does ITIN mean? ITIN or individual Taxpayer identification number is a type of Taxpayers identification number. Let’s look at what Taxpayers identification number or Tin means.
What is a Taxpayers Identification number (Tin)?
In order to administer tax laws, the Internal Revenue Service uses an identification number known as taxpayer Identification Number (TIN). The social security administration issues the social security number while IRS issues all other forms of TIN.
Types of Taxpayers identification number
Following are the types of tin numbers
- Social security number
- Employer identification number
- Individual taxpayer identification number
- Preparer taxpayer identification number
Why you need a Tin number
You would need a Taxpayers identification number when you file your tax returns and at the time of claiming treaty benefits, claiming exemptions for effectively connected income and for certain annuities.
How to get Tin?
You can a get the different types of Taxpayers identification numbers by doing the following things:
Social Security Number
In order to get a social security number you will have to submit evidence of your identity, age, and citizenship /legal alien status.
You will also have to fill out the application for a social security card through form SS-5.
Employer identification Number (EIN)
In order to identify a business entity a federal tax ID number known as employer identification number is used. Form SS-4 is used to get employer identification number (EIN).
Individual Taxpayer identification number (ITIN)
What does ITIN mean? If you are a non-resident or a resident alien unable to get a social security number than you can get a 9-digit tax processing number also known as an individual Taxpayers identification number (ITIN) for yourself, your spouse, and your dependents. You will have to complete Form W-7 to get an individual Taxpayers identification number. Let’s now look at what does ITIN mean in a bit more detail.
What does ITIN mean?
U.S citizen taxpayers identify themselves as well as their family members to the IRS or Internal Revenue Service through Social Security numbers. However, there are some non-citizens residing in the U.S that are ineligible for a Social Security number but still need to pay taxes. Fortunately for non-citizens, there is a way for them to meet their tax obligations and that way is applying for and obtaining an individual taxpayer identification number (ITIN).
What does ITIN mean? Issued by the IRS, ITIN or individual taxpayer identification number is a 9-digit tax processing number that individuals ineligible for a Social Security Number (SSN) use for filing tax returns. If you want to obtain an ITIN then you can apply for it by submitting Form W-7 to the IRS. We will look at what Form W-7 is and what information you need to provide in it a little later.
What does ITIN mean? ITIN is a Taxpayers identification number and the primary purpose of creating it was to allow non-citizens or individuals ineligible for a social security number to pay the taxes that they are required to pay. The fourth digit of the ITIN or individual taxpayer identification number is always 7 or 8 and ITIN always begins with the number 9. Furthermore, the ITIN is a 9-digit number. Individuals without a lawful status in the United States may obtain an individual taxpayer identification number or ITIN. Apart from these individuals without a lawful status, there are some other people who need to obtain an ITIN and are ineligible for a Social Security Number (SSN). Other people who need to obtain an ITIN and are ineligible for a Social Security Number (SSN) includes:
- An individual who is a foreign national and lives in another country but receives taxable income from an investment or business in the U.S
- A student from another country who qualifies as a United States resident
- Lawful Permanent resident
- A spouse or dependent of a U.S citizen
- A spouse or dependent of a foreign national who’s in the U.S on temporary visa
What does ITIN mean? It is important for you to remember that ITIN or individual taxpayer identification number cannot be used as a proof of legal status or work authorization in the United States. However, there are other reasons that make ITIN important. The reasons include:
- Having an identification number to file your federal taxes
- Provided you qualify, getting an income refund withheld by the Internal Revenue Service or IRS
- You can use ITIN to claim dependents you support in the U.S or other North American countries when you file your taxes
- You may be able to apply for mortgage loan or open a bank account with an individual Taxpayer identification number or ITIN
What does ITIN mean? Before we look into ITIN in a bit more detail, let’s take a look at why ITINs are necessary.
Why you need an ITIN
What does ITIN mean and why do you need it? ITIN or individual Tax Identification number is required by the IRS or Internal Revenue Service to identify and record your taxes. If you do not qualify for a Social Security Number then obtaining an ITIN is necessary for you. It is important for you to remember that ITIN or individual Tax Identification number will not provide you with a legal status rather its purpose is solely tax identification.
Every individual has his or her own unique ITIN. This is the reason some banks may ask you to provide them an ITIN for identification purpose when you open an account with them. Furthermore, in some U.S States an ITIN or individual Tax Identification number is a prerequisite for obtaining a driver’s license, State ID or a permit. Now that you know what does ITIN mean and why it is necessary, it is time to look at the process involved in applying for and obtaining an ITIN or individual Tax Identification number.
Applying for an ITIN
What does ITIN mean and how do you apply for it? There are certain documents that people applying for an ITIN should arrange before they actually apply for an individual Tax Identification number or ITIN. Not only are these documents necessary to apply for ITIN but they are also important for you to identify your status as an immigrant. In order to apply for an ITIN, the first and foremost thing that you need to do is complete the W-7 form. If you need an ITIN then filing Form W-7 is necessary. Non-citizens who are ineligible for a Social Security Number (SSN) but are required to pay taxes must obtain an ITIN by applying for it through Form W-7. You can either download the W-7 form from IRS’s website or you can get it from one of IRS’s regional offices. You need to provide the following information in Form W-7.
- Why you are applying for an ITIN
- Your foreign address, your U.S mailing address, and your name
- Your place and date of birth
- The country that you are a citizen of
- Provide you have one, your foreign tax ID number
- If applicable, your U.S visa number
- Details of the documents you are submitting to verify your identity
What does ITIN mean and what documents do you need to submit? You need to submit documents that verify your identify along with the form W-7. The documents that you need to arrange include:
- State ID
- S driver’s license
- US income tax return copy
- Passport or any other valid identification document
- A valid National identification document that has your name, date of birth, address, photo and its expiration date on it
- Birth Certificate of dependents who are unable to submit their passport
- Proof of being a registered voter in your country
- All documents that you had to submit for your U.S Visa
- Photo identification documents of US Citizenship and Immigration Services
- School records and medical certificate need to be submitted by dependents and children under 18
Now that you know what does ITIN mean, why it is necessary and how you can apply for it, it is time to look at when you should apply for an ITIN.
When should you apply for an ITIN?
What does ITIN mean and when should you apply for it? As soon as you’re ready to file your income tax return, you should complete form W-7. Submit Form W-7 along with the documents required for applying for an ITIN or individual Tax Identification number if are not required to file a return and meet one of the exceptions. After you determine that one of the exceptions cover you, submit Form W-7 and the documents as soon as possible.
What does ITIN mean and when is the best time to apply for it? You can apply for an individual Tax Identification number at any time during the year. However, you’ll be eligible for penalties and/ or interest if you file the tax return attached to Form W-7 after the due date. In order to avoid penalties and/or interest, you should apply latest by April 15. Now that you know what does ITIN mean and when you should apply for it, it is time to look at the methods of obtaining it. There are two methods of obtaining ITIN as stated by the Internal Revenue Service or IRS. The two methods are:
- Applying via an acceptance agent
- Applying directly to the IRS
Applying directly to the IRS
When you apply directly to the IRS, you need to obtain ITIN by applying through the mail or in person. You must submit Form W-7, your tax return and the required documents to the IRS when you apply directly. You need to send the documents to:
Internal Revenue Service
Austin Service Center
P.O. Box 149342
Austin, TX 78714-9342
When you’re applying in person, you can apply for ITIN at most IR.S offices. Furthermore, if you’re abroad, you can apply at most U.S consular offices. In order to find out if they accept W-7 applications, contact the IRS office in your area. The copy of an original document is acceptable provided the issuing authority or a legally authorized individual certifies it. The issuing authority or a legally authorized individual must certify that the document you’re submitting is a true copy of the original. ‘Authentication’ of the copy documents is necessary. If you do not submit authenticated copies then the Internal Revenue service will reject the documents.
If you’re applying for ITIN through mail then it is important for you to complete Form W-7 and mail the authenticated or original copies of the required documents along with it to the address mentioned on the Form.
Applying via an acceptance agent
What does ITIN mean and how do you apply via an acceptance agent? The Internal Revenue Service permits organizations to act as acceptance agents in order to facilitate the process of applying for ITINs. Another reason for permitting organizations to act as acceptance agents is accelerating the issuance of the ITINs. Taxpayers looking to obtain an Individual Taxpayer Identification Number from the Internal Revenue Service authorize acceptance agents as their representatives. It is important for the organizations acting as acceptance agents to satisfy the IRS that they have the required procedures and resources in place to comply with the terms agreed with the IRS.
Once an acceptance agent is authorized by the person seeking an Individual Taxpayer Identification Number to act on his or her behalf, the agent becomes legally responsible for providing the information required for obtaining the ITIN to the IRS. The acceptance agent needs to obtain the required information from the individual applying for the ITIN.
For additional information, organizations interested in becoming acceptance agents can contact the Office of Human Resources at IRS’s central office. Now that you know what does ITIN mean and how you can apply for it, it is time for you to find out how and when you can expect to receive your ITIN.
How and when can you expect to receive your ITIN?
What does ITIN mean and how/when can you expect to receive it? Usually four to six weeks after you apply for your ITIN, you will receive a letter from the IRS that contains the ITIN you’ve been assigned. However, you will only receive an Individual Taxpayer Identification Number or ITIN if you qualify and your application is complete. In order to differentiate ITIN from a Social Security Number card, the IRS is now providing an authorization letter instead of an ITIN card. However, people that were issued ITIN numbers through cards are allowed to use their cards for tax purposes. You can call the Internal Revenue service to find out the status of your application if you do not receive your ITIN six weeks after applying. Now that you know what does ITIN mean and how/when can you expect to receive it, it is finally time to move onto the final part which is benefit of applying for an ITIN.
The benefits of applying for an ITIN
What does ITIN mean and what are the benefits of applying for it? According to United States tax laws, you need to pay your taxes whether you’re a citizen or an immigrant. However, immigrants will be able to enjoy certain benefits if they obtain an ITIN. So what does ITIN mean and what are these benefits of applying for it? First and foremost, you will convey to the United States government that you’re complying with all the tax laws states by the federal government. Secondly, when you apply for citizenship, your tax records are taken into consideration. If you have an ITIN, you will be able to file taxes which will increase your chances of obtaining U.S citizenship.
What does ITIN mean and what are the other benefits of applying for it? By applying for ITIN, you allow the United States government to keep a record of all your documents. This in turns legalizes your status as an immigrant in the United States and you no longer remain an illegal immigrant. Furthermore, this will allow you to contribute to your citizenship process as the government will have all the information to review your educational background, work experience, and overall profile.
Another benefit of applying for an Individual Taxpayer Identification Number or ITIN is filing tax returns for grants. This includes grants for health care, accommodation, and education. If you’re eligible, the government will provide you the grant since you meet the government requirement of paying taxes for it.
What does ITIN mean and why do you need it? The U.S government requires every U.S citizen or resident to pay their taxes. Therefore, it is important for every person in the U.S to register themselves with the IRS. What does ITIN mean? ITIN is meant for non-citizens and individuals ineligible for a Social Security number. The ITIN allows such individuals to pay their taxes, contribute to the United States, and ultimately benefit from it.