You will need to give your tax identification number whenever you file your taxes or get in touch with the Internal Revenue Service (IRS) seeking any services. While Social Security Numbers (SSNs) are undoubtedly the most commonly utilized tax identification when paying taxes, the IRS also gives alternate tax identification numbers, especially to individuals who do not meet the standards for SSNs. If you do not have one, contact a CPA in White Plains, NY.

How can you avail of an ITIN if you do not possess one?

The IRS issues individual taxpayer identification numbers (ITINs), which are unique tax processing numbers. SSNs are mainly designed for citizens and eligible residents of the United States; on the contrary, ITINs are intended to help those who lack an SSN or are unable to obtain one to comply with U.S. tax rules.

These criteria apply to people who require an ITIN:

  • Non-resident aliens are people who are not citizens or residents of the United States but who earn money there and have to pay taxes in the United States.
  • Spouses or dependents of a resident alien, citizen, or non-resident alien visa holder in the United States.
  • Others: People who have to submit taxes or conduct financial transactions in the US but do not meet the standards for a Social Security number.

What are the benefits of owning an ITIN?

Tax compliance: 

Those who do not qualify for an SSN can still pay their taxes in the United States through an ITIN.

Claiming tax refunds:

 If you are qualified, you may file a tax return using an ITIN. Furthermore, you are eligible to claim tax credits and deductions that are provided to taxpayers, such as the Earned Income Tax Credit and the Child Tax Credit. 

Financial services availability: 

If you do not qualify for an SSN, you may open bank accounts, request credit cards, and apply for loans with an ITIN. You can also use it to construct your credit history in the US.

Estate planning: 

When it comes to estate planning, it does not matter if you are a resident alien or a non-citizen of the United States and you inherit property or intend to buy it here.

Here is how to submit an ITIN application:

  • File your federal income tax return along with Form W-7, the Application for IRS Personal Taxpayer Identification Number.
  • Provide proof of your identity and immigration status by bringing the original paperwork or certified copies from the issuing organization. They verify your identity and status as a non-resident of the US.

Where Can You Get an ITIN Application?

While filing an ITIN application, you have three options to pick from:

Application by Mail:

 Send the IRS the signed Form W-7, tax return, identity proof, and verification of foreign status.

In-Person Application: 

To apply for an ITIN in person, use the help of a Certifying Acceptance Agent (CAA) who has been authorized by the IRS. You will not have to mail your documentation confirming your identification and immigration status.

IRS Taxpayer Assistance Centre: 

To apply in person, schedule your appointment slot at one of the authorized IRS Taxpayer Assistance Centres.

How long will it take?

If you have to submit taxes or submit reports, you may apply for an ITIN at any time of the year. When it comes time to file your federal income tax return, remember that you need to fill out Form W-7. The IRS may require up to seven weeks to provide your ITIN.

Are there any fees associated with getting an ITIN?

No such fees are associated with obtaining an ITIN. The IRS provides it for free.