Gokce Tandogdu
ITIN Specialist, itin.net
An ITIN, or Individual Taxpayer Identification Number, is a tax processing number issued by the U.S. Internal Revenue Service (IRS) for certain resident and nonresident aliens, their spouses, and dependents who cannot get a Social Security number (SSN). The ITIN is used for U.S. federal tax purposes. When you search for "what is itin number in usa," you are looking for the identity number that allows individuals without an SSN to comply with U.S. tax laws. The IRS issues ITINs to individuals who have U.S. federal tax reporting or return filing requirements. They are issued regardless of immigration status, as the need for an ITIN is based solely on U.S. tax obligations.
Who Needs an ITIN?
An ITIN is required for individuals who must file a U.S. tax return or report income on behalf of themselves or others, but do not have and are not eligible to obtain an SSN. This includes a wide range of individuals, such as:
- Nonresident aliens who have U.S. tax return filing requirements, for example, from U.S. source income like royalties, interest, dividends, or compensation for services performed in the U.S. for which tax is due.
- Resident aliens (based on days present in the U.S.) who are not eligible for an SSN. This can include individuals filing a U.S. tax return who are married to a U.S. citizen or resident alien, or who are claimed as a dependent on a U.S. tax return, but do not qualify for an SSN.
- Dependents or other individuals claimed on a federal tax return who are not eligible for an SSN.
- Individuals who are not U.S. citizens but are U.S. residents (based on days present in the U.S.) and filing a U.S. tax return, and who do not have an SSN.
- Individuals filing a U.S. tax return under a U.S. tax treaty, who may need an ITIN to claim treaty benefits.
It is important to understand that an ITIN does not authorize you to work in the United States, nor does it provide eligibility for Social Security benefits. It is strictly for tax reporting purposes. If you are eligible for an SSN, you must apply for and obtain an SSN instead of an ITIN. The IRS will not issue an ITIN to anyone who has been issued an SSN by the Social Security Administration.
How to Obtain an ITIN
Applying for an ITIN involves submitting Form W-7, Application for IRS Individual Taxpayer Identification Number. This form requires specific documentation to verify your identity and foreign status. The application process can be completed in one of three ways:
- Mail your application to the IRS: You can mail your completed Form W-7, along with original or certified copies of your identification documents and your U.S. federal tax return, to the IRS address specified in the Form W-7 instructions. Processing times for mailed applications can be lengthy, often taking 7 to 11 weeks, and sometimes longer during peak tax seasons.
- Apply through a Certified Acceptance Agent (CAA): A CAA is an individual or entity authorized by the IRS to help taxpayers apply for ITINs. CAAs can verify your original identification documents and forward your application to the IRS. This is often the preferred method as the CAA can often return your original documents to you immediately after verification, and the IRS may expedite the processing of applications submitted by CAAs. itin.net is a service that can help you connect with a CAA for the Form W-7 application process.
- Visit an IRS Taxpayer Assistance Center (TAC): Some IRS TACs offer ITIN application services. You will need to make an appointment, and they can authenticate your identification documents. However, not all TACs provide this service, and it is essential to check with the specific IRS office beforehand. You may still need to submit your tax return with your application.
Regardless of the method chosen, you must submit a valid U.S. federal tax return with your Form W-7 application, unless you qualify for an exception (e.g., for certain treaty benefits or third-party designee situations). The tax return is the primary reason you are applying for an ITIN. The IRS will not issue an ITIN without an associated tax filing requirement.
Required Documentation for Form W-7
The Form W-7 requires you to submit documentation to prove your identity and foreign status. You must provide either original documents or certified copies from the issuing agency. The IRS will accept one of the following combinations:
- One primary identification document AND one secondary identification document.
- One document from the following list that contains both your photograph and essential identifying information:
- U.S. passport (unexpired or expired less than 10 years)
- National identification card (must have photo, name, address, DOB, and expiration date)
- U.S. driver's license
- Foreign driver's license
- Civil birth certificate (for dependents under 18)
- National Health Insurance Card (Mexico) or Canadian Health Insurance Card (must have photo)
- U.S. military ID card
- Foreign military ID card
- Visa
- U.S. State identification card
- Foreign voter's registration card
- U.S. Citizenship and Immigration Services (USCIS) photo ID
Primary documents are generally more comprehensive and include items like a passport or a national identity card. Secondary documents provide supporting information and can include items like a foreign driver's license, a bank statement, or a marriage certificate. The IRS provides a detailed list of acceptable primary and secondary documents in the instructions for Form W-7. It is crucial to review these instructions carefully to ensure your documents are acceptable.
If you choose to submit original documents to the IRS by mail, there is a risk of loss or damage. Submitting certified copies from the issuing agency mitigates this risk. If you use a CAA, they can verify your original documents and return them to you on the spot.
What is the Cost and Timeline?
There is no fee charged by the IRS to apply for an ITIN. However, if you use the services of a Certified Acceptance Agent (CAA) or a tax professional, they may charge a fee for their assistance. The cost associated with obtaining an ITIN is primarily for the services of third parties, not for the ITIN itself.
The timeline for receiving an ITIN can vary significantly. When applying by mail directly to the IRS, processing typically takes 7 to 11 weeks from the date the IRS receives your complete application and tax return. This timeframe can extend during busy tax periods, such as the first few months of the year and leading up to the tax filing deadline.
Applications submitted through a CAA may be processed more quickly by the IRS. While the CAA handles the initial verification, the IRS still performs its own review. The IRS aims to process ITIN applications submitted via a CAA within a similar timeframe, but sometimes expedited handling is possible. The IRS also has specific processing windows for ITIN renewals, which occur for ITINs that have not been used on a federal tax return for three consecutive tax years.
Common Mistakes to Avoid
Several common mistakes can delay or lead to the rejection of your ITIN application. Being aware of these pitfalls can significantly streamline the process:
- Incomplete Form W-7: Ensure all fields on Form W-7 are filled out accurately and completely. Missing information is a primary reason for delays.
- Incorrect or Missing Tax Return: The Form W-7 must be submitted with a valid federal tax return (unless an exception applies). Ensure the tax return is properly signed and dated. If you are filing jointly with a spouse, both must sign.
- Unacceptable Identification Documents: Using expired documents, documents without required information (like a photo), or photocopies instead of certified copies or originals can lead to rejection. Carefully review the IRS list of acceptable documents.
- Not Verifying Documents: If mailing original documents, ensure they are indeed originals or certified copies from the issuing agency. If using a CAA, ensure they are properly credentialed.
- Incorrect Social Security Number (SSN) Status: If you are eligible for an SSN, you must apply for one instead of an ITIN. The IRS will reject an ITIN application if it determines you are eligible for an SSN. You cannot have both an SSN and an ITIN.
- Mismatched Information: Ensure the name and other personal information on your Form W-7 exactly match the information on your identification documents and your tax return.
- Failure to Renew: ITINs that have not been used on a federal tax return for three consecutive tax years will expire. You must renew them if you have a future tax filing requirement. The IRS will notify you if your ITIN is due for renewal.
Avoiding these common errors will help ensure your application is processed efficiently and without unnecessary delays.
ITIN Renewal and Expiration
ITINs do not expire automatically upon issuance. However, the IRS implemented a renewal program for ITINs that have not been used on a federal tax return for three consecutive tax years. If your ITIN falls into this category, and you have a future tax filing requirement, you will need to renew it. The IRS typically begins sending out renewal notices in the fall for ITINs that qualify for renewal in the following tax year.
To renew your ITIN, you must submit a renewed Form W-7 along with the required identification documents and a federal tax return for the year you are filing. You cannot renew an ITIN without filing a tax return, unless you qualify for a specific exception. The renewal process mirrors the initial application process.
It is important to keep your ITIN current if you anticipate having U.S. tax obligations. An expired ITIN cannot be used for tax filing or other purposes requiring a U.S. taxpayer identification number. If you are unsure whether your ITIN needs renewal, you can check the IRS website or contact them directly. The IRS also uses the CP-575 notice to confirm the issuance of a new ITIN and CP-48 for renewal.
ITIN vs. EIN
It is common for individuals to confuse an ITIN with an Employer Identification Number (EIN). An ITIN is for individuals, while an EIN is for businesses. If you are forming a U.S. business entity, such as a U.S. LLC, you will likely need an EIN, not an ITIN. A U.S. LLC requires an EIN for tax reporting purposes, including filing Form 5472 if it is a single-member LLC owned by a foreign person. The process for obtaining an EIN is different from the ITIN application process. You can apply for an EIN directly with the IRS or use a service to assist with the application. You can learn more about obtaining an EIN on our /ein page.
For foreign nationals planning to establish a business in the U.S., the typical sequence of steps might involve forming a U.S. LLC, obtaining an EIN for the business, and then, if personal U.S. tax filing is required, obtaining an ITIN. Opening a U.S. bank account is another critical step for businesses, and many U.S. banks require both an EIN and a U.S. address. Services like Mercury, Relay, or Brex can often accommodate non-resident business owners. You can find more information about opening a U.S. bank account on our /bank-account page. Establishing a U.S. LLC is a foundational step for many foreign entrepreneurs, and details can be found on our /llc page.
How to Get Help
Navigating the U.S. tax system can be complex, especially for individuals unfamiliar with its requirements. If you are seeking an ITIN, several avenues for assistance are available.
Certified Acceptance Agents (CAAs) are highly recommended for their ability to streamline the Form W-7 application process. They are trained by the IRS and can authenticate your identification documents, often returning them to you on the same day. This method reduces the risk of losing important personal documents during transit to the IRS. itin.net can help you find a CAA.
For more complex tax situations, or if you have concerns about your U.S. tax obligations beyond simply obtaining an ITIN, consulting a qualified U.S. tax professional or an enrolled agent is advisable. They can provide personalized advice based on your specific circumstances, help with tax return preparation, and ensure compliance with all relevant tax laws.
If you are unsure about your eligibility for an ITIN, the type of documentation required, or the implications of U.S. tax laws on your income, seeking professional guidance is the most prudent course of action. For general information about ITIN specialists and related services, you can visit our /about page. If you have specific questions not covered here, our /contact page can help you reach out for further assistance. You can also explore more topics in our Q&A section at /qa or our blog at /blog.