ITIN Tax Number or SSN? Understand the Difference!

ITIN tax number is a nine digit Individual Tax Identification Number issued by IRS, Internal Revenue Service. Taxpayers in United States either have a SSN (Social Security Number) or an ITIN. ITIN tax number helps IRS to keep a track of every individual who has tax implications.

SSN is issued by the SSA (Social Security Administration). According to Wikipedia, ‘In the United States, a Social Security number (SSN) is a nine-digit number issued to U.S. citizens, permanent residents, and temporary (working) residents under section 205(c)(2) of the Social Security Act, codified as 42 U.S.C. § 405(c)(2)’.

Noncitizens that are authorized by the Department of Homeland Security to work in United States can get a SSN. This number is used to communicate wages to the government and to determine the eligibility for the Social Security benefits.

Individuals who are 18 or above can apply for a SSN whenever they want. There’s no such cost involved. You can apply from your home country when you’re applying for an immigrant visa for the United States. Otherwise you must have authorized papers from DHS that allows you to work for the time being. You can then visit a Social Security office in the U.S and get the process started. It’s going to take a few weeks before they issue you a number and a card.

Now who needs an ITIN tax number? Anybody who is not eligible for a SSN is issued with an ITIN tax number. It’s your identification number you need for filing federal taxes (federal tax purpose only). Your immigration status for an ITIN doesn’t matter because either way residents or nonresidents both have to go through tax implications.

During any time of the year, as soon as you’re ready to file your tax return, you should apply for ITIN. But due dates should not be missed. It usually takes about 5 to 6 weeks to get an ITIN tax number. You can call the office and check up on your ITIN status or to get assistance regarding the application process.

SS-5 & W-7

For a SSN, you need to fill out a SS-5 form along with the two original separate documents providing your identity and immigration status, work eligibility and age. For an ITIN tax number, you’re supposed to fill out a W-7 form and along with this form submit tax return, two individual identification documents that can be your birth certificate or your national identification document or anything that fulfills the criteria.

CCA – IRS Certified Acceptance Agent

If you’re applying for an ITIN, you can hire a CCA (certified acceptance agent) that will make the whole process a lot easier. They’ll proof check all your documents and will certify them as well. CAA will submit everything on your behalf and you no more have to go through the lousy application process. Because these agents are authorized by the IRS, you can completely rely on them. The services they offer vary from agent to agent. Some will cost you more and some will get your work done at real cheap rates.

Final Word

Remember that an individual can never really have both the numbers. It’s going to be a SSN or an ITIN tax number. Another thing, an ITIN tax number does not shower you with all the benefits that U.S taxpayers and citizens receive. It also does not provide legal immigration status or work authorization. So it’s important to understand the rules and regulations and see what you’re eligible for. Make sure to cover all the legal aspects and due dates.

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.