The American and non-American citizens are eligible to file their taxes with their Social Security Numbers. The head of family can use not only his own Social Security number, but also the numbers of his spouse, and children. If you are living, and earning income in the US, and you need to file taxes, but you are not a US citizen, then in certain circumstances, you need to file your taxes using your Individual Taxpayer Identification Number, or ITIN number.
What is Form W7?
The Individual Taxpayer Identification Number can be received by submitting Form W7, and other documents required with the form to the Internal Revenue Services. The Form W7 requires you to enter following necessary information.
- Applicant’s full name and family name
- Applicant’s current mailing address
- Applicant’s mailing address from the country of origin
- Name and zip code of the place and country of origin
- The reason why applicant needs ITIN number
- Foreign tax ID number of the applicant (if available)
- Applicant’s US visa number
- Date of birth and location of birth of the applicant
- Country of citizenship
- Details of documents required to verify the identity of applicant
Why the ITIN is Important?
According to the IRS rules and regulations, people working in the United States can submit their tax files using their Social Security number. To be eligible to use your Social Security number for filing the taxes, you may, or may not be a citizen, but you essentially need to be employed, or doing business, and have a work authorization document as well.
But there is a third category of tax applications. It includes the non-US citizens who don’t have work authorization documents, or permission to work in the US. The people falling in this category need to file taxes with an ITIN number. They file taxes when they are entitled to tax return treaty, or if they are earning taxable income from US sources.
If you fall in this category, and live in the US along with your family, and dependents then you will use the ID numbers of your spouse, children, and other dependents to submit income tax.
After receiving your ITIN, you will not only become eligible to submit your taxes, but you will also become eligible to get tax refunds, and tax credits from the American government. You will also become eligible to claim the support towards your dependents in America, Canada, and Mexico. It is also required to get loan, a mortgage, or open a bank account.
Documents You Need to Apply for ITIN
The status of immigration, or personal residency status does not change by obtaining an ITIN number. Also, the issuance of an ITIN does not make a person authorized to work in the United States. It only makes the person eligible to submit an income tax return, and pay tax on taxable income.
For obtaining an ITIN, you need to submit the following documents.
- A complete W7 form
- File of US federal income tax
It also includes identification documents including your passport. If the passport is not available then you can also submit the following documents.
- US driver’s license (if available)
- National Identification Document
- Birth Certificate
- US Citizenship and Immigration Service photo ID
- Medical records (of dependents only)
- School records (of dependents and students only)
- Voter registration copy of your country
- State ID
Some other documents may also be required for special cases, for example for submitting tax files of someone with criminal record. It is ideal to hire a tax preparer for calculating your taxes, and gathering all the important documents applicable to your profile.
ITIN and Social Security Number
According to the official website of the IRS, an individual cannot have a Social Security Number, and Individual Taxpayer Identification Number at the same time. You can apply for Social Security Number if you are earning taxable income, and are authorized to work in the US. But if you are not eligible for SSN, then you will use Form W7 to apply for an ITIN number. A person who has already applied for SSN, and the issuance of the number is pending from Social Security Administration, then the person should wait for the SSN only, and should not use Form W7.
Form SS-5 is used to apply for Social Security Number. After obtaining your Social Security Number, you will use Form 1040, Form 1040EX, and Form 1040A to file your taxes. The taxpayers of Form W7 don’t send the form to the address provided for taxpayers with SSN. You will send Form W7 to the given address.
Internal Revenue Service
Austin Service Center
P.O. Box 149342
Austin, TX 78714-9342
How to Know If You are Eligible for SSN or ITIN?
The IRS has made taxation smoother than ever. You can contact the IRS via telephone, or email, and submit your profile to know if you are eligible for SSN or ITIN. If you have already applied for obtaining Social Security Number with the Social Security Administration, then the IRS will either issue you an SSN (if applicable), or contact you to submit Form W7 for ITIN (if you are not eligible for SSN).
You can also contact a nearby tax preparer to know your eligibility. If you need information, or help for your ITIN application then you can consult a tax preparer, or contact the IRS on their toll free number 1-800-829-1040.
When you submit your W7 form, it takes six to eight weeks to issue you ITIN number. Ideally, you should contact the IRS after six weeks for getting updates about your ITIN number. Within six to eight weeks, the IRS will send you a letter of notification along with your ITIN number on your current postal address.
Generally it takes six to eight weeks to process, and receive your ITIN number but you may be required to re-submit Form W7 in case of complications. Therefore, if you have not received your ITIN number then you should submit it at least three months before the deadline of submitting your tax return.
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.