What Does ITIN Mean? What Is ITIN Used For?

The IRS (Internal Revenue Service) issues Individual Taxpayer Identification Numbers, or ITIN, as processing numbers for individual taxpayers. An ITIN is a nine-digit number formatted like a Social Security Number (e.g., XXX-XX-XXXX) but starts with a nine. ITIN numbers are given to people who have to file U.S. federal taxes but do not qualify for a Social Security Number.

The ITIN was created back in 1996 to help people earn a U.S. income. With the ITIN, people can remain in the U.S. without a valid immigration status and still meet federal tax requirements. It is important to understand that the ITIN is strictly for tax processing. An ITIN does not allow a person to work or receive government benefits.

Who Needs an ITIN?

The IRS issues ITINs to persons who have to file taxes but are not eligible for an SSN, like the following people:

• Non-resident aliens who have income in the United States
• Resident aliens who do not have an SSN
• Foreign nationals who invest or do business in the United States
• Dependents or spouses of U.S. citizens or resident aliens
• International students and researchers who do not qualify for an SSN

It is also important to note that if you are a U.S. citizen or permanent resident, you are not eligible for an ITIN.

ITIN vs SSN: Key Differences You Must Understand

Feature	ITIN	SSN
Issued by	IRS	Social Security Administration
Work authorization	No	Yes
Social Security benefits	No	Yes
Federal tax filing	Yes	Yes
Bank account access	Many banks accept it	Yes
Government-issued ID	No	Yes

The most important difference is that ITINs are only used for taxes. They are not used for identification purposes or for immigration purposes.

When Is an ITIN Necessary?

ITINs are necessary in situations where one needs to:

• File a U.S. federal tax return without an SSN
• As a non-resident alien, report income for which you are eligible for a tax treaty benefit
• Be included as a dependent or spouse on a U.S. tax return
• Open some bank accounts or get a U.S. mortgage
• Report income from U.S. assets, whether they are investments or rental properties

To avoid tax-related penalties, you must apply for an ITIN. The IRS advises applying for an ITIN when you submit your tax return.

How to Apply for an ITIN: Step-by-Step Process

To apply for an ITIN, you need to complete IRS Form W-7. The complete steps are as follows:

Step 1: Go to irs.gov, download Form W-7, and fill out the form. Use the most appropriate reason code.

Step 2: If you qualify for an exception, you do not have to attach your federal tax return.

Step 3: Submit the documents that prove your identity and foreign status.

Step 4: Submit your application using one of the three options:

• Mail it to IRS ITIN Operation, P.O. Box 149342, Austin, TX 78714-9342
• Apply directly to one of the IRS Taxpayer Assistance Centers
• Go to a Certified Acceptance Agent (CAA), who also verifies your documents, so that you do not have to send your originals

Using a CAA is highly suggested because it keeps your passport safe and results in fewer mistakes.

Documents Required for an ITIN Application

The only document that meets both the identification and foreign status requirements is a passport. Other accepted documents include:

• A national identification card that has a photo, name, address, and expiration date
• U.S. or foreign driver’s license
• Civil birth certificate (required for dependents under 18)
• Medical or school records for young dependents
• U.S. Department of State visa
• Foreign voter registration card

The IRS returns original documents within 60 days of receipt.

ITIN Processing Time: How Long Does It Take?

Submission Method	Estimated Processing Time
Mail outside tax season	6 to 8 weeks
Mail during January through April	Up to 11 weeks
In person at IRS TAC	3 to 5 weeks
Via Certified Acceptance Agent	6 to 8 weeks

If 11 weeks have passed and you still have not received your ITIN, you can call the IRS at 1-800-829-1040 to check the status of your application.

Can You Apply for an ITIN Without Filing a Tax Return?

Yes, in some cases. The IRS allows for certain exceptions:

• Dependents of U.S. military personnel who are overseas
• Non-resident aliens who have a tax treaty
• Researchers, students, and professors who are filing an exemption
• H-4 visa holders and other similar dependents

In other situations, a tax return must be attached. Not including a tax return will cause your submission to be rejected.

Using Your ITIN: What You Can and Cannot Do

An ITIN allows you to:

• Submit federal and some state tax returns
• Open certain bank accounts
• Apply for a mortgage in certain cases
• Establish some U.S. credit history

An ITIN does not allow you to:

• Work in the U.S. legally
• Access benefits from Social Security or Medicare
• Get the Earned Income Tax Credit
• Use it as a photo ID in federal proceedings

ITIN Renewal Rules: When and How to Renew

An ITIN will expire if it has not been used on a federal tax return for three years in a row. ITINs that were issued before 2013 and have a certain series in the middle digits will expire according to the IRS’s rolling schedules.

To renew your ITIN, provide a new Form W-7, check the box for renewal, and include any additional supporting documents. You do not need to include any tax documents. If you submit your Form W-7 before October, your ITIN will be renewed before the tax season rush. If you submit a tax return with an expired ITIN, it will hold up the return, and you may lose out on tax credits.

Common ITIN Application Mistakes to Avoid

• Submitting expired identification documents
• Sending original documents via mail without using a tracking service
• Using an incorrect reason code on Form W-7
• Failing to attach a tax return when one is required
• Using an outdated version of Form W-7
• Having a different name on your documents than on your W-7 form

Most of these issues will be resolved when you work with a Certified Acceptance Agent.

ITIN for Business Owners and Foreign Entrepreneurs

Many times, foreign business owners will need an ITIN in addition to the company’s Employer Identification Number (EIN). This can be the case for:

• Foreign sole proprietors with U.S. income
• Non-resident partners with a U.S. partnership or LLC
• Foreign investors with U.S. dividends or rental income
• Non-residents selling U.S. real estate are subject to FIRPTA rules

In these instances, it is best to work with international tax consultants.

Frequently Asked Questions About ITINs

Q: Can I work in the U.S. if I have an ITIN?

No. An ITIN does not give you any employment rights in the U.S. as it serves as just a tax ID.

Q: Can I establish a credit history with an ITIN?

Yes. ITIN holders can receive secured credit cards and other credit products from certain banks and credit unions.

Q: Can I convert my ITIN to an SSN?

No. If you qualify for an SSN, you will need to apply for one and contact the IRS to update your record.

Q: Does the IRS share ITIN information with immigration?

No. Taxpayer information is protected. The IRS does not share information with immigration in the normal course of tax matters.

Q: What do I do if I lose my ITIN letter?

If you lose your ITIN letter, you can call 1-800-829-1040, and an IRS representative will assist you.