Itin application & renewal

 
 

What is an ITIN?

An Individual Taxpayer Identification Number (ITIN) is a unique nine-digit tax processing number issued by the Internal Revenue Service (IRS) in the United States. It is used for tax purposes and is primarily designed for individuals who have U.S. tax obligations but are not eligible for a Social Security Number (SSN). Here's more detailed information:

What ITIN Is Used For:

  1. Tax Reporting: The primary purpose of an ITIN is to facilitate federal tax reporting. It allows individuals who are not eligible for an SSN to comply with U.S. tax laws by filing tax returns and paying taxes.

  2. Claiming Dependents: ITINs are often used to claim dependents, such as children or spouses, on a tax return. This can affect tax credits and deductions.

  3. Business and Investment: Non-resident aliens, foreign investors, and non-U.S. residents who earn income in the United States may need an ITIN to open a bank account, invest in U.S. stocks, or engage in other financial transactions.

  4. Mortgage Applications: Some mortgage lenders may require borrowers who lack an SSN but have an ITIN to apply for a home loan.

  5. State Tax Obligations: ITINs may also be used for state tax purposes in some cases, depending on the state's requirements.

Who Needs an ITIN:

ITINs are typically needed by the following individuals or entities:

  1. Non-Resident Aliens: Individuals who are not U.S. citizens or permanent residents but have a U.S. tax filing requirement.

  2. Spouses and Dependents: Non-resident spouses and dependents of U.S. citizens or residents who need to be claimed on a tax return.

  3. Foreign Investors: Individuals who receive income from U.S. investments, such as rental income from U.S. properties.

  4. Business Owners: Non-U.S. residents who own businesses or receive income from self-employment in the United States.

  5. Scholars and Students: Foreign students, researchers, and scholars in the U.S. who receive taxable income.

  6. Non-U.S. Residents with U.S. Income: People who earn income in the U.S. but do not have an SSN.

It's important to note that an ITIN is not a work authorization or a visa. It's solely for tax purposes. If you fall into one of the categories mentioned above and have U.S. tax obligations, obtaining an ITIN is necessary for your legal compliance with the IRS.