Individual Taxpayer Identification Number (ITIN) is really a 9-digit number that really must be furnished on all returns, statements, and other tax-related documents just in case anyone does not have a Social Security Number (SSN). To detail it further, all nonresident alien individuals who are to get the benefits of a low rate of withholding under an income tax treaty or nonresident aliens who have to file U.S. tax return only to claim a refund (in lack of SSN) or nonresident aliens who will undoubtedly be filing joint tax returns with a spouse; the spouse being fully a U.S. citizen or resident alien, require an ITIN.
Even the U.S. resident aliens who are not eligible to get SSN, require it to file federal tax returns. So does an unfamiliar individual who is being claimed as a spouse for exemption on a U.S. tax returns, in case there is him or her being non-eligible for SSN. ITIN is mandatory for many such alien individuals who are claimed as a dependent on another person's U.S. tax return and for nonresident alien students, professors, or researchers filing a U.S. return. Nonresident students, professors and researchers require ITIN while claiming an exception to the tax return filing requirement as well.
Whatever category you fall in, two basic things remain same -
1. ITIN is issued generally to individuals who aren't eligible for SSN; an individual in no case can have both SSN and ITIN.
2. ITIN is issued primarily for federal tax purposes only. It doesn't entitle you for just about any social security benefits and for earned income credit. However, it's now accepted as identity proof while opening an interest-bearing bank account.
The ITIN issued to an individual expires after 5 years if he or she fails to file a federal income taxes return in every one of these years. In this case, it's possible to reapply and get their ITIN renewed.
One can apply for ITIN by mail or personally at designated IRS Taxpayer Assistance Centers in the United States. There's one good thing about applying personally as most of the documents attached get reviewed and returned for your requirements while applying only. ITIN has played a vital role in bringing the taxpayer in US economy. Realizing the significance of ITIN, the federal government has authorized some individuals, businesses or organizations as Certifying Acceptance Agents (CAAs). These CAAs are meant to help the taxpayers inside their ITIN application process.
So if you are already one person in above category, be sure to get your ITIN before filing tax return. In the event any difficulty, look for some CAA near your neighborhood to help you.
