Gokce Tandogdu
ITIN Specialist, itin.net
Your Individual Taxpayer Identification Number (ITIN) does not expire or become invalid when you obtain a Social Security Number (SSN). The ITIN serves a specific purpose for U.S. tax administration, and its validity is not affected by obtaining an SSN, which serves different functions. This answer addresses what happens to your ITIN when you get an SSN, covering the implications for your tax filings, identification, and potential next steps.
Your ITIN Remains Valid and Active
An ITIN is issued by the Internal Revenue Service (IRS) to individuals who need a U.S. taxpayer identification number but do not have and are not eligible to obtain an SSN. The primary purpose of an ITIN is to facilitate tax processing, such as filing federal tax returns. When you are issued an SSN, it does not revoke or nullify your ITIN. Both numbers can coexist, though the SSN will typically supersede the ITIN for employment and wage reporting purposes.
Understanding the Purpose of Each Number
The ITIN is used by various entities for tax reporting and compliance. For instance, if you are a non-resident alien who needs to file a U.S. tax return (such as Form 1040-NR) or report certain U.S. business activities (like those of a U.S. LLC requiring Form 5472), you will use your ITIN. It is also used for opening certain types of financial accounts, though this is becoming less common as SSNs are preferred.
The SSN, on the other hand, is issued by the Social Security Administration (SSA) and is primarily associated with employment authorization and eligibility for Social Security benefits. When you receive an SSN, it becomes your primary identifier for employment, wage reporting, and future retirement or disability benefits. Most employers will require your SSN for payroll and tax withholding.
Tax Filing Implications
When you have an SSN, you will use it for all future tax filings. If you previously filed taxes using your ITIN, and now have an SSN, you should use your SSN on all subsequent tax returns (e.g., Form 1040-NR or Form 1040). The IRS system will associate your tax history under your ITIN with your new SSN. You do not need to file a special form to notify the IRS of your SSN in relation to your ITIN; they will link the numbers internally based on your tax filings.
However, if you have specific tax situations that require the use of an ITIN even after obtaining an SSN (which is rare but possible in some niche international tax scenarios or specific treaty benefits that are not employment-related), you would continue to use your ITIN for those specific purposes. For general U.S. tax obligations related to employment or U.S. business income, the SSN is the correct identifier once obtained.
Identification and Reporting
Once you have an SSN, it becomes your primary identification number for most official purposes in the U.S., including employment, banking, and government services. If you have opened a U.S. bank account or established a U.S. LLC using your ITIN, you may need to update your information with the financial institutions or relevant authorities to reflect your SSN. This is particularly important for reporting requirements and compliance.
For instance, if you have a U.S. LLC and are required to file Form 5472 (Information Return of a 24 Percent Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business), and you previously used your ITIN for identification purposes on related documents or tax forms, you should now use your SSN. The same applies to reporting for foreign-owned U.S. corporations or partnerships. If you are a member of a partnership or a beneficiary of a trust that has filed information returns (like Form 1065 or Form 1041) using your ITIN, you should provide your SSN to those entities for their future reporting.
Updating Financial Institutions
Financial institutions, such as banks, credit card companies, and investment firms, will typically require you to provide your SSN once you obtain one. This is for Know Your Customer (KYC) regulations, anti-money laundering (AML) compliance, and tax reporting purposes (e.g., for interest or dividend income reported on Form 1099). If you opened a U.S. bank account using your ITIN, you should proactively contact the bank to update your profile with your SSN. Banks like Mercury, Relay, or Brex, which cater to businesses and often work with non-residents, will have specific procedures for updating your information.
Failure to update your SSN with financial institutions could lead to issues with account management, reporting of income, or even potential account holds. It is a straightforward process, usually involving filling out a new signature card or updating your personal information through their online portal or in person.
What if I still need to apply for an ITIN?
If you are in the process of applying for an ITIN and you obtain an SSN before your ITIN application is processed, you should stop the ITIN application and instead apply for an SSN if you are eligible. If you have already filed your ITIN application (Form W-7) and subsequently receive an SSN, you do not need to do anything further regarding the ITIN application itself. The IRS will likely process your ITIN application, but for any future tax filings, you will use your SSN.
If you have an existing ITIN and are eligible for an SSN, you should begin using your SSN for all employment and tax purposes. The ITIN will remain valid but will not be the primary number for your tax obligations related to employment. It is important to understand that the ITIN application process, often facilitated by a Certified Acceptance Agent or CAA, is designed for those who cannot obtain an SSN. If an SSN becomes available, it is the preferred identifier.
Renewing Your ITIN
ITINs do not expire in the traditional sense, but those not used on a federal tax return for three consecutive tax years are considered invalid by the IRS. However, this rule is separate from the issuance of an SSN. Even if your ITIN is inactivated due to non-use, obtaining an SSN does not automatically reactivate it. You would need to go through the ITIN re-application process (filing Form W-7 again) if you needed an ITIN after it was inactivated, and you still did not have an SSN.
Since obtaining an SSN makes it the primary identifier for tax purposes related to employment, the question of ITIN renewal becomes less relevant for individuals who have secured employment authorization. The IRS issues a notice, CP-48, to inform taxpayers when their ITIN is about to expire due to non-use.
Next Steps and Considerations
For most individuals, obtaining an SSN is a significant step toward greater integration into the U.S. financial and employment systems. While your ITIN doesn't become void, your SSN takes precedence for most identification and tax reporting needs. The key takeaway regarding what happens to your ITIN when you get an SSN is that it remains a valid identification number issued by the IRS, but it will be superseded by the SSN for employment and related tax filings.
If you are a business owner who previously used an ITIN for your U.S. LLC or other business structures, ensure all relevant tax forms (like Form 5472) and financial accounts are updated with your SSN. This ensures accurate reporting and avoids potential compliance issues. For individuals planning to establish a U.S. business presence, securing an EIN is often a necessary step, which can be applied for using either an ITIN or an SSN. You can learn more about applying for an EIN on our /ein page.
If you are setting up a business, understanding the requirements for forming a U.S. LLC is also crucial. Our /llc page provides detailed information on this process. For those who need to open a U.S. bank account as a non-resident, exploring options like those mentioned on our /bank-account page can be beneficial.
For personalized advice on your specific tax situation, especially if you have complex international tax obligations or questions about how the transition from ITIN to SSN affects your filings, consulting with a qualified tax professional or an enrolled agent is recommended. The itin.net service can assist with ITIN applications through our network of Certified Acceptance Agents, providing a streamlined path for those who qualify. You can learn more about our services on the / page or contact us directly via /contact.
Understanding the relationship between your ITIN and SSN is essential for accurate tax compliance and financial management in the United States. While the ITIN served its purpose, the SSN opens up broader opportunities and responsibilities within the U.S. system. The process of obtaining an SSN generally signifies a shift towards greater integration into the U.S. economy, and ensuring your tax and financial records reflect this change is paramount. This directly answers the question about what happens to your ITIN when you get an SSN, confirming its continued validity but emphasizing the SSN's primary role moving forward.