Individual Taxpayer Identification Numbers (ITIN’s)
In this overview, we will highlight some of the key information to allow a clear understanding of Individual Taxpayer Identification Numbers in the US.
Last updated 20 October 2020 at 14:48
An Individual Taxpayer Identification Number is a United States tax processing number.
It is issued by the Internal Revenue Service (IRS) to residents with foreign status, including non-resident and undocumented aliens that conduct any business within the US. The ITIN is a nine-digit number that is formatted similarly to a Social Security Number.
What is the purpose of an ITIN?
Individual Taxpayer Identification Numbers allow people that are not eligible for a Social Security Number to efficiently comply with the US tax laws.
In the US, only US citizens and authorized non-citizen residents can obtain a Social Security Number (SSN). Amongst other purposes, SSN’s are needed to be able to work and collect pensions within the US, and for non-residents that travel to the United States for work, an alternative is needed.
An ITIN’s main purposes are filing your taxes and opening a US bank account, but can also help you obtain a mortgage, a driving license (in certain states), settle employment disputes, as well as provide proof of residency when needed.
Who needs an ITIN?
Below is a clearer breakdown of exactly who would need an ITIN:
- Resident aliens (if the amount of days they reside in the US requires them to file a tax return)
- The spouse or any dependents of resident aliens
- The spouse or any dependent of resident aliens that hold a valid visa
- Non-resident aliens that are required to file a tax return
What are ITIN’s not used for?
An ITIN cannot provide you with immigration status. It does not provide eligibility for Social Security benefits or authorize you to work within the US.
Applying for an ITIN
Application for an ITIN requires a single-page document which is an IRS Form W-7 (Application for IRS Individual Taxpayer Identification Number).
Some of the legally required information you would need to provide includes the following;
- Your birth name
- Date of birth
- Place of birth
- Original foreign status/immigration documents
- Identification documents (e.g. driving license, passport, state issued ID)
- Any previous identification numbers if you have used an ITIN before
If you do need an ITIN and have not yet applied for one, it is best to do this as soon as possible as the process can take anywhere between 8-10 weeks.
Will my ITIN expire if I am working in the US more than 1 year?
Some ITINs’ can expire if it is not used on a federal tax return at least once in the last three years. Others will need to be renewed despite this time frame. The middle digits of the ITIN number that you are assigned can affect this. Speaking to a US tax specialist can clarify what action you would need to take in regards to your ITIN.
It is always recommended to seek advice on your taxes, especially when handling documents as a non-resident. Submitting an application for an ITIN after your income tax return is due could result in penalties and high interest, so seeking advice from an expert could avoid costly errors such as this.
Request a quote from a US tax specialist who will help you apply for an ITIN
At Experts for Expats we can connect you with a US tax specialist who will be able to provide you with a quote for applying for your ITIN. The specialists we work with will be able set up a brief initial conversation to discuss whether you need to apply for an ITIN and give you an overview relating to the US tax system. They will also provide you with a no-obligation free quote for assisting with your ITIN application.
Testimonials from people who have used this US tax introduction service
I have actually already recommended the site to someone else in a similar situation to me. I did quite a bit of searching, and Experts for Expats was one of the many sites I engaged with. However after the responses from everyone, there was absolutely no doubt in my mind that this was the best service.
John W. United Kingdom, US Tax Return
The expert was very friendly, helpful and precise in answering my questions on the rules on residence and domicile, and their effects on tax status, for UK-US dual citizens like myself and my wife. I was stimulated to confirm the salient points on Gov.UK. This has allowed us to plan our future stays in the US and UK.
Donald T. United States, UK/US Tax matters
Connected me with a great US tax advisor who had exactly the expertise I needed.
Max J. United States, US Tax Return
What expats say about our experts
Excellent service from start to finish. Would definitely recommend.
Nick S.
UK CGT introduction in United States
Quick response, and follow up from the connection that was made - which was professional and trustworthy
Sarah B.
Uk Tax Return introduction in Netherlands
Quick efficient and friendly - answered my question re tax status for my dual US/UK National daughter
Liz H.
Tax introduction in United Kingdom
I've been impressed by all aspects of my dealings to date. The clarity of the information given, the job knowledge of the consultant and the lack of pressure for me to sign up to anything have been what I am especially satisified with.
Timothy S.
Investment advice introduction in United Arab Emirates
The Experts for Expats is a top class website. It is to be highly recommended for its clear approach to handling Capital Gains Tax returns to HMRC especially as it is probably an aspect that only rarely needs to be dealt with my most people. For this reason it is a relief to come across such a website that is very clear on what doing a proper return entails. In the first instance it sets out a framework that shows what needs to be known to complete the tax return. It does provide a tailored service. The ease of making a full and proper tax return is assured by how the site matches a particular Accountant from a team of Tax Experts to deal with the particular query. There is very useful follow up to ensure contact is made.
Dermot C.
UK and Irish Tax introduction in Ireland
It was a fast and efficient service and put me in touch with a professional who was able to give the advice I was looking for.
Connor P.
UK CGT introduction in United States
I had my consultation with Stephanie, who was really polite and friendly. She listened to my circumstances and analyze it. She also clarified the misunderstandings from my side as well. Overall, the session was extremely helpful.
Adam L.
Irish Tax Matters introduction in Ireland
Although my personal situation and circumstances are a bit complicated Alan was very professional and took the time to understand the various issues and concerns. He's come back with some things for me to consider after which I'll make some decisions about how to proceed.
Gordon. H
Pensions, SIPP introduction in Canada