Individual who are not eligible for the SSN (Social Security Number) are issued with an ITIN (Individual Tax identification number) by IRS (Internal revenue Service). The aim for issuing individuals with an ITIN is basic tax administration.
ITIN works for both, residents and nonresidents, in United States reason being, both have some sort of tax association and in order to process their tax return it’s important each individual has a unique set of nine digit numbers to keep a sound track.
It’s important to understand the difference between the nature of ITINs and SSNs. An ITIN is not exactly a replacement to a SSN because SSN is only issued to U.S. citizens whereas an ITIN can be issued to anyone outside U.S. as long as they’re fulfilling the requirements. Another point to note is that an ITIN does not give an individual SSN benefits or EIC (Earned Income Credit) as well as there’s no change in the immigration status.
How many ways to apply for ITIN?
In general there are three basic channels via which you can apply for ITIN.
For an in-person application process, you’re going to have to visit the IRS office or the Taxpayer Assistance Center. They’ll ask you to fill out the ITIN W-7 from, attach your tax return and documents. And once you’re done with this, you can simply mail it to the IRS.
If you’re doing it via CAA (Certified Acceptance Agent), just follow their instructions. These agents are authorized by the IRS itself and they’ll verify and certify your documents and will assure IRS that yes everything is good to go.
Apply for ITIN Online
Now if you want to apply online, there is absolutely no complication.
- There are various websites that handle the online application process. You can visit http://www.itin-gov.us/.
- Next you should go through the instructions and procedure before filling out the form.
- Once you are through with the entire reading, fill out the W-7 form.
- Collect the documents required and submit them along with your correct tax return.
- Follow the checklist in case you’re missing something.
And you’re done!
The only thing that needs a little bit more of your time is reading all the instructions thoroughly. Every single detail is mentioned on the websites in a simplified manner so this shouldn’t be hard either. Your documents can include your passport, national I.D card, driver’s license, birth certificate, medical & school records etc.
Most of companies that offer ITIN application services are authorized by the IRS and act as CAA. They don’t ask you to mail your documents because they don’t want you risk losing them. They also offer to fill out the W-7 forms and guarantee to handle all communications with IRS.
Other Uses of ITIN
It’s true that the sole purpose of an ITIN is to give you identification for filing taxes but there are a few more things your ITIN can do.
- ITIN allows you to claim dependents you support in U.S, Canada or Mexico.
- You can simply open a bank account or apply for mortgage loan.
- You can use your ITIN to build credit.
- It also allows you to receive refund from the IRS in case your income is withheld.
So whether you file for an ITIN online, in-person or via agent, the route you follow is straightforward. All you have to do is stick with the instructions and requirements and the whole process becomes easier than you think.
If you want to apply for an, Individual Taxpayer Identification Number, or ITIN tax number and have any other questions, please feel free to contact us at 888-509-3616. If you have any suggestions please share those with us as well. Freedomtax ITIN Number has a professional team of IRS Certifying Acceptance Agents, and tax accounting professionals with more than 16 years of experience, helping immigrants with their ITIN application. Freedomtax can also help immigrant entrepreneurs incorporate a business in the USA. Freedomtax ITIN Tax Number Online services provides Quality, Professional Service with a Family Feel.