7 Tips on What Is An ITIN Number And How To Get An ITIN Number

2. Why Do We Use ITINs and What Do They Do?

ITINs were created for tax reasons by the IRS in 1996. The main reason for the number’s creation was to ensure that individuals who are not eligible for SSNs—foreign nationals, for instance—comply with U.S. tax laws.

People who do not possess legal status as citizens in the United States obtain ITINs. Also, individuals who are not eligible for SSNs but legally present in the U.S. and need to pay taxes can also get an ITIN. These include:

• Foreign nationals who are students, professors, or researchers in the U.S. file U.S. tax returns but do not have SSNs.
• Based on the number of days spent in the country, foreign nationals who lawfully reside in the U.S. are filing a U.S. tax return.
• Dependents or spouses of U.S. citizens or legal permanent residents.
• Dependents or spouses of foreign nationals who are on a temporary visa.

3. An ITIN number does not provide legal status or work authorization.

• ITIN numbers cannot be used to prove legal presence in the United States.
• ITIN numbers cannot be used to confirm work authorization on an I-9 form.

4. Individuals with ITIN numbers pay taxes.

• ITINs allow individuals without SSNs to pay taxes.
• ITIN holders are not eligible for all the public and tax-based advantages enjoyed by taxpayers who are U.S. citizens.

ITIN holders are not eligible for Social Security benefits or the Earned Income Tax Credit (EITC). However, if the individual can obtain Social Security at some point, then the earnings they recorded with their ITIN can be added as part of the amount they are deemed to receive.

• Some holders of ITINs can receive Child Tax Credits or CTCs.

Based on federal legislation in 2021, the Child Tax Credit may be valued at $3,600 for each child under the age of 6.

The CTC may be valued at up to $3,000 for each child from ages 6-17. This is dependent upon the applicant’s income.

Children without SSNs are ineligible for the tax credit.

5. What Else Can ITINs Accomplish?

• Provide proof of residency. Immigrants sometimes need to prove how long they have been in the U.S. Filing a tax return with an ITIN is one way to show that.
• Open a bank account that gains interest. Individuals without SSNs who do possess an ITIN can open interest-bearing accounts.
• Get a driver’s license. In some states, an ITIN is recognized instead of an SSN as a way to procure a state I.D. card, permit, or driver’s license.

6. Can the Government Track Undocumented Immigrants Use Their ITINs?

• Taxpayer privacy is a crucial element of the tax system in the U.S. Privacy is vital to the program’s success. Applicants give the IRS a range of personal information, which must be handled carefully.
• ITINs are not meant to be used to enforce legal immigration. Instead, ITINs were created to make tax payments easier. Plus, the IRS will not ever share applicants’ private information with agencies dealing with immigration.

The IRS is not able to release taxpayer information to government agencies. The only exceptions are:

• Providing information to the U.S. Treasury Department for investigations associated with tax administration
• Acting in accordance with a federal court order associated with a non-tax criminal investigation.

7. How Can Individuals Apply for an ITIN?

• To get an ITIN, Applicants must fill out the W-7 application form and submit it to the IRS. They also must submit a completed tax return.
• Applicants must submit documents to the IRS verifying their identity and “foreign status.” The IRS has a list of 13 papers that are accepted for this purpose.
• Applicants can apply by private delivery service or regular mail and do not need to appear in person. They are, however, required to send original documents, or certified copies, to the IRS. The IRS will return the documents when the process concludes.
• Applicants can also apply through a person whom the IRS recognizes as being able to help the applicant file the W-7. This individual is known as an Acceptance Agent, or A.A. for short. However, the documents sent must be the applicant’s original documents or certified copies to the agency.
• Applicants can apply through a Certifying Acceptance Agent (CAA), an individual authorized by the IRS to validate the applicant’s documents.
• Applicants can apply in person at a Taxpayer Assistance Center (TAC). Authorized individuals staff these centers to authenticate the applicant’s documents. Applicants who apply at a TAC also will be able to keep their original documents.
• When the IRS approves an application, the ITIN is sent to the applicant through the mail.

The number will expire if an individual obtains an ITIN but does not include it on their federal tax return for three consecutive years. At this point, the ITIN must be revalidated. Also, ITINs with a middle digit between “70” and “87” have passed.