The Individual Tax Identification Number, commonly known as an ITIN tax number, is a very important identification tool within the US tax system. It helps in bringing more people under the tax net, and ensures every citizen is abiding by the US laws. But if an ITIN is so important, why not every individual living in the US needs one? This question has sparked much confusion among US citizens. If you are one of those confused individuals, this blog will surely answer some of your questions.

Although an ITIN tax number is a significant element when it comes to tax reporting and filing, not everyone needs it. This is because some individuals hold a similar identification number, called the Social Security Number, which eliminates the need for them to hold an ITIN. A Social Security Number is typically held by those residents who are US nationals. Local nationality qualifies an individual for an SSN, and disqualifies him/her from holding an ITIN. However, if you do not have an SSN, it is crucial for you to acquire an ITIN tax number for tax reporting purposes.

Having answered who does not need an ITIN, we now need to shed some light on who does. Here is a list of those individuals who are required by the US law to hold an ITIN tax number:

A Non-resident Alien

Under the US law, a non-resident alien who is required to file tax return should obtain an ITIN tax number. An alien is any individual who is not a US citizen. A non-resident alien is defined as a non-US citizen who does not have a green card or has not passed the Substantial Presence Test.

Because taxing requirements and rules differ slightly for non-resident aliens than other individuals, they are required to obtain an ITIN. These non-resident aliens are taxed only on the income that is generated within the US, with the exemption of taxation on any income which is produced beyond the country.

A Resident Alien

A resident alien is any citizen of the US who has been allowed by the US laws to reside in the country as an immigrant permanently. Any non-resident alien who meets the requirements of either the green card test or the Substantial Presence Test is deemed as a resident alien.

Particularly, if an individual has resided in the US for more than 31 days in the current year, or for more than 183 days over a period of three years, s/he is said to have passed the substantial presence test and is hence called a resident alien. Such individuals, who are taxed for their entire earnings like US citizens, are required to obtain an ITIN tax number for tax reporting.

Dependent(s) Of Resident/Non-resident Aliens

Spouse or dependents of resident and non – resident aliens are also required to obtain an ITIN tax number if s/he does not qualify for obtaining an SSN. This is important as this subsequently leads to determination of whether the spouse or dependent, like children, qualify for receiving Child Tax Credit or other tax relaxations.

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.


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