ITIN Application
Table of Contents
In the vast realm of U.S. tax procedures, the term ITIN, or Individual Taxpayer Identification Number, plays a significant role. This unique number is assigned by the Internal Revenue Service (IRS) to individuals who are obliged to have a U.S. taxpayer identification number but cannot get a Social Security Number (SSN).
A broad range of individuals may find themselves needing an ITIN, such as:
- Non-U.S. residents required to file a U.S. tax return.
- U.S. resident aliens filing a U.S. tax return.
- Dependents or spouses of a U.S. citizen or resident alien.
- Non-U.S. resident scholars, professors, or researchers filing a U.S. tax return or claiming an exception.
- Any person who has federal tax filing or reporting obligations but lacks an SSN.
The purpose of the ITIN is simple—it’s a tool for tax reporting. It assists the IRS in managing tax returns and payments for those not eligible for SSNs.
If you believe you need an ITIN, it’s imperative to correctly complete your application to avoid delaying your tax return. If you’re uncertain, consider seeking assistance!
Eligibility Criteria
Eligibility for an ITIN hinges on whether you’re a foreign national or a person obligated to file or report under U.S. law, regardless of your resident status.
Eligibility is further subdivided into these categories:
- Non-U.S. residents who must file a U.S. tax return.
- U.S. resident aliens filing a U.S. tax return.
- Dependents or spouses of a U.S. citizen or resident alien.
- Dependents or spouses of a non-U.S. resident visa holder.
- Non-U.S. resident scholars, professors, or researchers filing a U.S. tax return or claiming an exception.
Remember, no one is allowed to hold both an ITIN and an SSN. Hence, if you’re eligible for an SSN, it’s suggested that you apply for that rather than an ITIN.
The Application Process
Embarking on the ITIN application journey begins with filling out the IRS’s Form W-7, which is the “Application for IRS Individual Taxpayer Identification Number”. This form requires essential personal details, like your name and non-U.S. address, and key birth information.
Remember, you’ll also have to attach a valid federal income tax return to your application to demonstrate to the IRS your tax-related reason for requesting an ITIN. Exceptions to this will be outlined in the form’s instructions.
If you’re wondering where you can find the W-7 form and its instructions, they’re easily accessible on the IRS website.
Even though the process is quite straightforward, that doesn’t mean you can’t ask for help if needed. That’s precisely why tax professionals exist—to make things easier and ensure you’re on the right track.
Required Documentation
The IRS requires certain documentation to verify your identity and foreign status. You’ll need to submit originals or certified copies of the documents required for the process.
For identification, the IRS accepts multiple documents, but a passport suffices without any need for additional documentation. If you don’t possess a passport, you’ll need to provide two of the following:
- a U.S. driver’s license
- a foreign driver’s U.S. military identification card
- a U.S. identification card
- a foreign voter’s registration card
- or a valid birth certificate.
If you are submitting proof of your foreign status, it could be your foreign passport or national identification card with a photo, name, and foreign address.
Regarding certification, original documents don’t require it. But if you’re sending copies, they must be certified by the issuing agency or notary. Photocopies or notarized photocopies are not accepted.
What if I’m way behind on my U.S. tax returns?
There is a special IRS program to help you catch up on your U.S. taxes safely, without fines and penalties
STREAMLINED AMNESTY
It’s for American citizens that didn’t know they had to file U.S. tax returns each year, and have therefore fallen behind. Some more than 30 years! With the IRS Streamlined Procedure, say goodbye to overdue tax returns, late fees, and penalties. If you have children, we can backdate your Child Tax Credit Refund for 3 years.
Get a quote here.
IRS Certified Acceptance Agents
IRS Certified Acceptance Agents, or CAAs, are entities (individuals, businesses, or organizations) authorized by the IRS to assist individuals in obtaining ITINs. They can review your identification documents and forward them to the IRS, providing a certificate of accuracy so you don’t have to send original documentation to the IRS. Using a CAA can make the application process quicker and more secure.
To find a Certified Acceptance Agent, you can visit the IRS website, which has a list of both domestic and international CAAs. It’s worth mentioning that CAAs might charge a fee for their services, so you should inquire about this before using a CAA.
Validity and Renewal of ITIN
Once you have an ITIN, keep in mind that these numbers expire if they’re not used on a federal income tax return for three consecutive years. In this case, the ITIN would need to be renewed before it could be used on a tax return again.
Also, to improve ITIN services, the IRS has put in place a program that deactivates or expires ITINs issued before 2013 based on a rolling schedule. Affected taxpayers receive a notice explaining the expiration and renewal process.
To renew an ITIN, you need to fill out a new Form W-7 and provide the necessary supporting documents again. You don’t need to attach a tax return for renewals, but you must include the reason for applying in the appropriate section on the form.
If your ITIN has expired and you file a tax return with it, there might be a delay in processing your return. The IRS usually notifies the taxpayer when an expired ITIN is used.
ITINs and Tax Filing
The primary function of an ITIN is for tax purposes. If you’re not eligible for a Social Security Number, you can utilize your ITIN when filing your federal tax returns. However, it’s essential to distinguish an ITIN from an SSN—an ITIN does not grant you the right to work in the United States, nor does it provide eligibility for Social Security benefits. The key focus here is taxes.
Also, remember that the use of ITINs does come with certain restrictions. For instance, ITIN holders do not qualify for certain tax advantages, like the Earned Income Tax Credit. Yet, there are other tax credits, such as the Child Tax Credit, for which they might qualify, provided they satisfy all the required conditions.
Claiming Dependents Using ITIN
- Relationship: The individual must be a blood relative, a step-relative, or an in-law.
- Age: For children, they must be under 19 years old, under 24 if a full-time student, or any age if permanently disabled. There’s no specific age requirement for dependents who aren’t children.
- Residency: The dependent should be a U.S. citizen, a U.S. resident alien, a U.S. national, or a resident of Canada or Mexico for part of the year.
- Support: You must provide more than half of the person’s total financial support for the year.
- Joint Return: You generally cannot claim a person as a dependent if they file a joint return.
- Income: The dependent (who isn’t a child) must not have gross income equal to or more than the exemption amount for that tax year.
- Dependent’s Tax Liability: If the dependent has a tax liability, they cannot be claimed on your tax return.
- Marital Status: If married, the dependent cannot file a joint tax return, unless it’s only to claim a refund and no tax liability would exist for either spouse if separate returns were filed.
Support Resources
The IRS website is a valuable resource for ITIN-related information. You can find a host of FAQs, application instructions, and other important information.
In addition, Certified Acceptance Agents can be engaged for personalized assistance during the ITIN application process. They have a deep understanding of the process and can provide guidance at each step, making the application process simpler.
Furthermore, local communities may also have resources such as workshops or assistance programs provided by community organizations, tax preparers, or legal aid organizations. These can offer tailored, in-person assistance, making the process less intimidating.
We are an official acceptance agent for processing ITINs.
Complete our ITIN request form here:
https://www.expattaxonline.com/application-for-itin/
The information provided herein is for general informational purposes only and should not be considered professional advice. While we aim to provide helpful and accurate information, we make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained here or linked to from this material.
Always get professional advice from a US international tax specialist.
We offer professional, tailored tax advice. Contact us for more information.
Spread the word. Please share… 👉
