Gokce Tandogdu
ITIN Specialist, itin.net
You cannot directly change your Individual Taxpayer Identification Number (ITIN) to a Social Security Number (SSN) with the IRS. An ITIN is issued to individuals who need a U.S. taxpayer identification number but do not have, and are not eligible to obtain, an SSN. An SSN is assigned by the Social Security Administration (SSA) based on specific work authorization in the United States. If you are asking how to change ITIN to SSN with IRS, the direct answer is that this is not a process the IRS handles. Instead, you must apply for an SSN with the Social Security Administration once you meet their eligibility criteria.
Understanding the Difference: ITIN vs. SSN
The fundamental difference between an ITIN and an SSN lies in their purpose and eligibility. An ITIN is solely for federal tax reporting purposes. It allows non-residents, resident aliens, and other specified individuals to comply with U.S. tax laws when they are not eligible for an SSN. The IRS issues ITINs through the / service, which involves submitting an application with Form W-7 and supporting documentation.
An SSN, on the other hand, is issued by the Social Security Administration (SSA) and is primarily used for tracking earnings and determining eligibility for Social Security benefits. To be eligible for an SSN, you generally must have authorization to work in the United States from the Department of Homeland Security (DHS). This authorization is typically granted to U.S. citizens, lawful permanent residents (green card holders), and certain non-immigrant visa holders who have explicit permission to work.
Therefore, the question of "how to change ITIN to SSN with IRS" misunderstands the roles of these two agencies and identification numbers. The IRS issues ITINs, and the SSA issues SSNs. You transition from an ITIN to an SSN by becoming eligible for and applying for an SSN through the SSA, not by changing your ITIN with the IRS.
Eligibility for an SSN
Eligibility for an SSN is determined by the Social Security Administration, not the IRS. The most common path to obtaining an SSN is through work authorization in the United States. This includes:
- U.S. Citizens: By birth or naturalization.
- Lawful Permanent Residents (Green Card Holders): Individuals granted permanent residency in the U.S.
- Certain Non-Immigrant Visa Holders: Some non-immigrant categories allow for employment authorization. This often requires obtaining an Employment Authorization Document (EAD) from the U.S. Citizenship and Immigration Services (USCIS) before applying for an SSN. Examples include individuals with H-1B, L-1, O-1, or certain types of student visas (like F-1 with OPT or CPT).
If you have an ITIN and are seeking an SSN, it means you have likely gained work authorization or permanent residency status. The SSA will verify your legal immigration status and work authorization with DHS.
The Process of Obtaining an SSN
Once you have obtained work authorization or permanent residency, you can apply for an SSN with the Social Security Administration. The process is as follows:
Gather Required Documents: You will need proof of your identity, age, and immigration status/work authorization. This typically includes:
- Proof of Identity and Age: Usually your foreign passport. If your passport is expired, you may need another acceptable document like a national identity card.
- Proof of Immigration Status and Work Authorization: This is the most critical part. Examples include:
- Form I-551, Permanent Resident Card (Green Card).
- Form I-766, Employment Authorization Document (EAD).
- Form I-94, Arrival/Departure Record, along with a visa stamp or other DHS authorization.
- Other documents issued by DHS or USCIS demonstrating your legal right to work in the U.S.
The SSA has specific requirements for each type of immigration status. It is crucial to review their guidelines on the SSA website to ensure you have the correct documentation.
Complete Form SS-5: This is the application for a Social Security card. You can download it from the SSA website or obtain it at a local SSA office.
Visit a Social Security Office: You must apply in person at a Social Security office. You cannot apply by mail unless you are overseas and meet specific criteria. Bring your completed Form SS-5 and all original supporting documents.
SSA Verification: The SSA will verify your immigration status and work authorization with DHS. This process can take some time, depending on the complexity and the agencies involved.
Receive Your SSN Card: If approved, the SSA will mail your Social Security card to you. The card will indicate whether you have work restrictions. If you have an ITIN and now qualify for an SSN, you will use this SSN for all future tax filings, and your ITIN will generally no longer be needed for tax purposes, though it may remain in IRS records.
When Your ITIN Becomes Obsolete
Your ITIN becomes obsolete once you are issued an SSN. You should start using your SSN for all tax purposes immediately upon receiving it. This means filing your tax returns (e.g., Form 1040 or 1040-NR) with your SSN instead of your ITIN.
If you have already filed a tax return with your ITIN for a tax year in which you were eligible for an SSN, you may need to amend that return to show your SSN. Consult with a tax professional to determine if and how you should amend your prior-year tax return. Generally, you will use your SSN for the tax year in which you received it and for all subsequent tax years.
Transitioning from ITIN to SSN for Business Purposes
If you obtained an ITIN to establish a U.S. business, such as a U.S. LLC, and later obtained work authorization allowing you to get an SSN, this transition has implications.
- Tax Filings: As mentioned, you will use your SSN for all personal and business-related tax filings going forward. For instance, if your U.S. LLC is a disregarded entity for tax purposes and you are the sole member, its income and expenses are reported on your personal tax return. You would use your SSN on that return.
- Form 5472: If your U.S. LLC is owned by a foreign person or entity and required to file Form 5472 (Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business), the filing requirements remain the same. However, the individual filing the return might use their SSN if they are the responsible party and have obtained one.
- EIN Application: If you previously obtained an EIN for your business, that number remains with the business entity. You will continue to use the EIN for business tax filings. The SSN is for your personal tax identification.
- U.S. bank account: If you opened a U.S. bank account using your ITIN, you should update the bank with your new SSN. Banks typically require customers to provide their SSN for tax reporting purposes (like interest earned) once they obtain one.
Common Misconceptions and Next Steps
A common misconception is that you can somehow "convert" or "change" your ITIN to an SSN. This is incorrect. The ITIN is tied to your tax identification needs when you are not eligible for an SSN. Once eligibility for an SSN arises, you apply for that new number separately through the SSA. The ITIN remains a record of your past tax interactions with the IRS.
If you are currently using an ITIN and believe you may now be eligible for an SSN, the best course of action is to:
- Confirm Eligibility: Review the SSA's criteria for SSN eligibility based on your current immigration status and work authorization.
- Gather Documentation: Collect all necessary original documents to prove your identity and work authorization.
- Apply with the SSA: Visit your local Social Security office to submit your application.
Seeking Assistance
Navigating U.S. immigration and tax laws can be complex. If you are unsure about your eligibility for an SSN, the required documentation, or how to update your tax filings after obtaining an SSN, consider seeking professional assistance.
- Social Security Administration: For questions specific to SSN eligibility and the application process, the SSA is the primary resource. You can visit their website or contact them directly.
- Tax Professionals: For guidance on how obtaining an SSN affects your U.S. tax obligations, including amending prior returns or ensuring correct filings for your business (like a U.S. LLC), consult with a qualified tax advisor or CPA. Services like itin.net can help with ITIN applications, and we can also provide guidance on related U.S. tax matters.
- Immigration Attorneys: If your eligibility for an SSN is tied to complex immigration matters, an immigration attorney can provide crucial advice.
Remember, the process is not about changing an ITIN to an SSN, but rather about applying for and obtaining an SSN from the SSA when you meet their criteria, thereby making your ITIN obsolete for future tax filings.
ITIN Renewal and SSN Implications
ITINs do not expire in the same way a driver's license does, but the IRS does have rules about ITINs that have not been used on a federal tax return for three consecutive tax years. These ITINs may be deactivated. However, this is separate from obtaining an SSN. If you obtain an SSN, you will no longer use your ITIN for tax filing, thus avoiding the issue of ITIN deactivation due to non-use. The IRS will likely have your ITIN on record, but your primary taxpayer identification number will become your SSN.
For individuals who obtained an ITIN to establish U.S. residency or business operations and later gain the ability to work, the issuance of an SSN is a significant step. It streamlines tax reporting and opens up further opportunities for employment and financial services within the United States. The key is to understand that these are distinct processes managed by different government agencies, each with its own set of rules and application procedures. The transition is made by applying for the SSN with the SSA, not by modifying the ITIN with the IRS. This is the correct way to address the underlying goal behind the question "how to change ITIN to SSN with IRS."