What is the ITIN?
The ITIN, Individual Taxpayer Identification Number, is the tax processing number issued by Internal Revenue Service (IRS). ITINs are issued for individuals who don’t have a Social Security Number (SSN) and must have a U.S. taxpayer identification number.
Every ITIN has nine digits, and the initial number is 9; therefore, it is easy to identify these numbers. If you have this number, you are not automatically eligible for residency in the US. It is the most common understanding of the ITIN. Also, these people can not benefit from social security rights in the US. ITIN number is provided by the IRS and is only used for tax purposes.
For what purpose should I get an ITIN?
ITIN helps individuals who are not eligible for Social Security Numbers correspond with U.S. tax laws and ease the process and account for tax returns and payments. Both Resident and Nonresident Aliens are able to have ITIN to U.S. filing or reporting requirements under the Internal Revenue Code. ITIN also will help you to open a U.S. bank account, access merchant services, and get approved by Stripe and PayPal.
However, having an ITIN does not mean that you can authorize work in the U.S. You can not have the privilege of Social Security Benefits. Also, you can not designate a dependent for Earned Income Tax Credit Purposes.
Does the following apply to you?
- You do not have an SSN and are not eligible to obtain one, and
- You have a requirement to furnish a federal tax identification number or file a federal tax return, and
- You are in one of the following categories:
- Nonresident alien who is required to file a U.S. tax return
- U.S. resident alien who is (based on days present in the United States) filing a U.S. tax return
- Dependent or spouse of a U.S. citizen/resident alien
- Dependent or spouse of a nonresident alien visa holder
- Nonresident alien claiming a tax treaty benefit
- Nonresident alien student, professor, or researcher filing a U.S. tax return or claiming an exception
If so, then you must apply for an ITIN. E-government LLC is an authorized CAA by IRS and provides a hassle-free ITIN application.
In short, The ITIN is a 9-digit number issued by the IRS. It is used to process the tax returns of individuals who are not eligible to work in the US and have no social security number. The ITIN is used to identify these people so they can pay taxes. Essentially, the ITIN is a tax processing number. It is not a social security number (SSN). SSN is a unique individual identification number. The ITIN, on the other hand, is an identification number assigned to tax-paying individuals who are not eligible for an SSN.
As a non-U.S. resident, you must have an ITIN when;
- Opening U.S. Bank Account,
- Opening U.S. Merchant Account,
- Opening e-Commerce Account (Amazon, eBay, Etsy, Spotify)
- Filing U.S. taxes and getting a tax refund,
- Selling U.S. property (real estate investment).
How do I receive an ITIN?
If you need to receive an ITIN, you must complete Form W7 and submit the form to the IRS. Please see the instructions for completing the W-7 form and the other requirements for getting an ITIN https://www.irs.gov/pub/irs-pdf/iw7.pdf. Also, you can hire us to complete your process, and you do not have to send your original documents by post to the IRS (Such as a passport)
To enter the business in the U.S., you must have SSN or ITIN. If you can not receive an SSN, you definitely must obtain an ITIN. This 9-digit number may allow you to be taxed at a lower rate and potentially get the money back while filing a tax return.
If you want to get an ITIN but aren’t quite sure where to begin, it could be worth finding a CAA to help you throughout the process. Many non-us residents have chosen to work with E-government LLC to simplify processes and accurate work.
E-government LLC is an IRS-authorized Certified Acceptance Agent and Commercial Registered Agent in the State of Delaware.
Updated on September 23,2023