The United States has long been known as a land of opportunities. This is why people across the globe keep moving and plan to move here.
Well, policymakers and some pertinent institutions are constantly working to make sure things are not complicated for immigrants. This is especially for those that are not yet eligible for certain things such as a social security number.
These people need to access certain privileges and ITIN is one of the provisions for such people. This article will shed light on this special kind of Tax Identification Number and hope that you pay attention. This is especially important for immigrants and people close to them.
What Is ITIN?
It is the acronym for “Individual Taxpayers Identification Number”. It is one of the several tax identification numbers that the Internal Revenue Service (IRS) uses to help administer tax laws. It is specifically designed for immigrants that have not obtained or are not eligible to obtain a Social Security Number.
In other words, US nationals do not need this government-issued number. In the same vein, immigrants that now have a Social Security Number do not need and are not eligible for an ITIN anymore.
The Act that necessitated its use empowered the IRS to issue and regulate things. This is unlike what is obtainable with the SSN which is issued and regulated by the SSA (Social Security Administration).
Applying for the Individual Taxpayers Identification Number
People that need to have the ITIN number need to keep tabs on the IRS current regulations. This is because this institution keeps reviewing issuing procedures and regulations that apply.
This is also why working with Acceptance agents that are certified is strongly advised. The reason is that this is their area of core competence and you stand a better chance of eventually getting your ITIN and other needed services with them. Now that you are aware of this, the application process for ITIN involves the following:
Application Using the Recent Form W-7
This form needs to be filled and the tax return has to be attached. However, some people may be exempted from attaching a tax return. These are people that qualify for an exception. Working with a capable acceptance agent will help you know if you fall into this category or not.
Proof of Foreign Status and Identity
Several documents have to be submitted in the bid to prove your foreign status and identity when applying. These documents need to be recent ones and must have an expiry date. There are only 13 documents that the IRS allows for proving your foreign status and identity and they are:
- United State’s Driver’s License (if you have one)
- Passport
- Persons below the age of 18 require a birth certificate as dependants
- National ID Card
- A Driver’s License that is foreign
- A Voter’s Card that is foreign
- ID Card of a US state
- Military ID Card that is foreign
- ID Card of the US Military
- Visa
- USCIS Photo Identification
- School Records for persons below 18 as a student and below 14 as a dependent
- Medical Records for persons under the age of 6
Applicants are expected to submit any of these documents as proof of their foreign status and identity. You can see firptataxreturns.com/itin-applications/ for more information about this.
Some Things to Know about ITIN
There are some things that you should know as someone that relies on ITIN or that would rely on it for tax identification purposes. Some of these things include the fact that:
The ITIN Number has an Expiry Date
The ITIN might have been created to fill in the gap for people that cannot obtain a Social Security Number. However, there are differences between both tax identification numbers.
One of the differences is the fact that ITIN does expire. This is not the same thing with SSN. The social security number is something that will remain relevant as long as you are on US soil and it does not expire.
On the contrary, ITIN numbers are only valid for 3 years as things are. The PATH Act is one of the reasons why ITIN remains renewable. This PATH Act necessitated this so that tax hikes will be avoided even by immigrants that are not eligible for SSN.
Getting ITIN Is in Your Best Interest
Getting an ITIN number is in your best interest as long as you are not eligible for an SSN. Many benefits come with this.
The most notable of them is that you will not miss out on tax credits that you are eligible for. This could be the American Opportunity and Child Tax Credits; for instance. Also, people without this Tax Identification Number usually have a hard time getting their tax returns on time.
The truth is that the system does not favor those that are eligible for this tax identification number but do not have it. So, you should get it if you do not have it. You should also make the right move if yours is expired.
Capable acceptance agents can help people in both categories. These are just some of the services offered by acceptance agents as there are a few others.
You Need to Keep Tabs with the IRS
Rather than the SSA that is in charge of Social Security Number matters, the IRS is in charge of ITIN matters. So, you need to keep tabs on them so that you do not miss out on important things.
This is important because this institution is fond of making changes frequently. So you need to be well aware. Or better still, you could make good use of acceptance agents that are capable and approved to operate by the IRS.
These service providers get first-hand information and make sure their clients do not miss out on anything that matters. So, working with them is strongly advised.
Conclusion
We have shed light on what ITIN is here and some other subjects that center on this special kind of tax identification number. You are advised to make the most of this information if it applies to you.