If you work in the United States and earn income, you must pay taxes even if you do not have a Social Security Number. In this case, it is done through the Individual Taxpayer Identification Number (ITIN). Know what are the steps to get an ITIN number with Hispanic Entrepreneurs.
What is the ITIN number?
ITIN stands for Individual Taxpayer Identification Number. It is a tax identification number used by foreigners, regardless of their legal status, to pay taxes in the United States.
To get the ITIN Number, you must fill out the IRS Form W-7. The form requires information such as your full name, date of birth, and address. You will also need to provide proof of identity and filing aliens must attach a passport copy with the W-7 form.
All those people who work and receive income within the country, but who do not meet the requirements to have a Social Security Number (SSN) must obtain an ITIN.
This number is provided by the Internal Revenue Service (IRS). And, although we are talking about the declaration and payment of taxes, nowadays it is necessary for other day-to-day procedures. For example, to open a bank account or request a credit.
The process to obtain the ITIN Number is free, but the cost of filing the tax return will depend on the tax program used to prepare the return. US citizens and legal permanent residents who have a social security number do not need an ITIN Number.
If you still don't know how to get ITIN, we will explain it to you step by step later.
What can I do with the ITIN?
We just mentioned that this tax identification number is used beyond tax filing. But what can you do with the ITIN? If you do not qualify for the SSN, apply for the ITIN to have the following benefits.
The ITIN Number is used to file federal income tax returns, so it is important to have it before filing. The number will be issued by mail and its acronym, “ITIN,” will appear in the corresponding field on the tax return.
Tax payment
We insist on this point because foreigners who obtain income within the United States have the obligation to file and pay taxes.
Even if you do not have a legal status, you must make sure that you comply with the tax obligations. For these cases, the ITIN number appears.
Tax rebates and benefits
In the same way that you pay your taxes, the ITIN opens the possibility of claiming the refund for taxes withheld on income. To get this benefit, you must first check that you meet the requirements.
On the other hand, if you have qualified dependents, such as children who were born in the USA, you can claim tax benefits.
Open a bank account
If you live in the United States, you will need a bank account to manage your money. The same is true if you want to have a business. With the ITIN you can open an account without problems.
Apply for a driver's license
Requirements for obtaining a driver's license include an SSN. However, there are states where they accept the ITIN. Find out if you can use it to process this document where you live.
Get loans and mortgages
Do you want to buy a house or a car on credit? ¿You need to finance your business? With the ITIN you can access small business loans from some entities, as well as to acquire properties.
Steps to get an ITIN number
Follow the steps below to get your tax identification number.
Review the requirements and choose the documents to send
The requirements to apply for the ITIN They are on the IRS website and their purpose is to verify the identity of the person and their status as a foreigner.
The IRS published a list of 13 documents that they accept as evidence. Of these, only the passport can be presented alone. For the rest, a combination of two documents must be submitted.
The identity document of the country of origin is included; driver's license from the United States or abroad; visa issued by the United States, foreign voting card, among others.
You must present current original documents or certified copies thereof.
Fill out the application form
The next step to understand how to apply for an ITIN number is to complete the information requested on Form W-7.
The personal data that you enter in the form must match those that appear in the passport or documents that you present. Make sure to complete all the information. If you have questions, you can go to an agent or assistance center authorized by the IRS.
Attach the tax return
One of the requirements to obtain the ITIN is to file the tax return. In turn, you need the ITIN to do this. What you must do is complete the declaration and send it together with the form, in addition to the rest of the documents that they request.
Send the request
A frequently asked question is where to send the ITIN number. Once you have the form with the documents, you have three options to apply.
The first is to send everything, including the original documents by mail. The corresponding address is the following:
Internal Revenue Service
Austin Service Center
ITIN Operation
PO Box 149342
Austin, TX 78714-9342
The IRS will return the documents within 60 days of receipt.
If you do not want to send the original documents, you have two other alternatives:
- Through a Certifying Acceptance Agent authorized by the IRS.
- Through a Taxpayer Assistance Center.
How long does it take to get the ITIN Number?
Finally, we have to wait for the IRS to send the ITIN, it will be through a letter in which the nine-digit number will be assigned. The process takes about seven weeks, according to the IRS.
If you completed the steps to obtain an ITIN number, you will receive the identification number in the estimated time. Although there are some months when it may take longer than those seven weeks. If you have any questions, you can contact the IRS.
Related Notes:
