Know All about Individual Taxpayer Identification Number & Who Needs ITIN?

The Individual Taxpayer Identification Number is a 9 digit number issued by the Internal Revenue Service. The individual taxpayers are issued an ITIN for filing the federal taxes and filing their income tax returns. It also works at the place of “social security number”. The United States’ IRS issues the ITIN to both the US citizens and non citizens. This is issued to the immigrant for filing their taxes in case they do not have any social security number. If an individual is not a US citizen and eligible for a social security number, he or she is issued an ITIN by the IRS. Check out why it is needed, how it benefits you and how to apply for the renewal of the ITIN.

After getting an ITIN, individuals have access to the IRS online account where they can check out the balance due, payment history, previous year tax records, payment plans and more. The IRS issues various types of federally funded benefits to the individual tax payers. But the eligible taxpayers can avail those benefits if they have an ITIN. The individuals receive Child Tax Credits and other benefits such as earned income tax credits to the eligible families. It does not serve any purpose other than enabling the taxpayers report federal taxes. The ITIN helps the US taxpayers in complying with the US tax laws and provides a meaningful and efficient way to process and account for tax returns and payments for those who do not have and are not eligible for a social security number.

About Individual Taxpayer Identification Number

  • ITIN a unique identification number allows the citizens and non citizens to have access to the previous year tax filing status. If you have not updated the previous three years income tax returns on the ITIN, it has expired by now. Because if the ITIN is not included in the US federal tax returns once in last 3 years, it automatically expires at the beginning of the fourth year. If you have already submitted an application for renewal for the ITIN and it is approved by the IRS, you do not need to file for the renewal again. It is reactivated now. In case you have not submitted the renewal application, now you are required to file the application form for the ITIN along with US federal tax returns and other IRS’s required documents.
  • If you are using your ITIN for information purposes only, to know the tax filing status and reporting purpose, you do not need to renew the application now. But later when you will need to file the US federal income tax returns, you will be required to renew the ITIN then. It is also important to report your mailing address to the IRS if you have recently moved and about to receive your ITIN whether new or the renewed. It needs the mailing address to send you application form and other notification details for the confirmation of the current status.

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Individual Taxpayer Identification Number Quick Details

Title ITIN
Purpose Income Tax Filing
Issued by The Internal Revenue Service
Issued to US Residents and Non Residents
Application form W 7

Know All about Individual Taxpayer Identification Number & Who Needs ITIN?

Who Needs ITIN?

If the following criteria apply to you, then you surely need to require an Individual Taxpayer Identification Number

  • You do not possess an social security number and are not eligible to obtain one
  • A requirement to furnish a federal tax identification number or filing income tax returns
  • You belong to one of the following categories
    • Spouse of a US citizen or resident alien
    • Dependent of a US citizen or resident alien
    • Spouse of a US non resident alien visa holder
    • Dependent of a US non resident alien visa holder
    • Non resident alien making claims for tax credits
    • Non resident alien student, researcher or professor filing to US federal tax
    • US resident alien filing for federal taxes based on the days present in the country
    • Non resident alien filing for U.S. federal taxes

What ITIN does not Support?

The individual taxpayers can make use of it for filing the federal taxes. It is used even at the place of social security number but there are other exclusions which the ITIN cannot grant

  • The individual taxpayer number does not authorize work permit in the U.S.
  • It can be used for filing the taxes at the place of the SSN but the ITIN cannot be provide eligibility for social security benefits
  • It also does not qualify the individuals for earned income tax credits available for the citizens
  • It only serves the purpose of reporting the taxes

What to Do When Individual’s Name has Changed?

In case you have changed your name willingly or the name gets changed unwillingly due to marriage and divorce, you need to report the changes to the administration if the change has affected the legal name and the documents you own. You can file a request on “where do I file my W 7 form?” you are also required to give explanation of the change and the circumstances.

  • Whether the marital status has changed your name
    • Getting married soon or got married recently
    • Getting divorced or divorced
    • A related document validating the name change

How to File Federal Tax Using ITIN?

As the ITIN is primarily used for filing the federal taxes, refer the following points to check out how to file the taxes by using the ITIN.

  • While filing the form for tax returns you have to mention the ITIN at the place where the form is asking for the social security number
  • In this file the ITIN will go for the SSN
  • It will also enable you to get access to child tax credits and earned income tax credits along dependent care tax credits

How to Apply for ITIN?

You can apply for an ITIN by using three ways. All the ways are quite different from each other, so decide the way which suites your preferences and choices

  1. You can make an appointment with a IRS taxpayer assistant center
  2. You can also choose to contact a IRS Authorized Certifying Acceptance Center
  3. Fill out form W 7, application for a ITIN and submit it with your tax return
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