What is an ITIN?

Do one thing: If you work in the U.S. and don’t have a Social Security Number, contact the IRS to apply for an ITIN.

Not everyone living in the United States is eligible to receive a Social Security number, even if they are approved to legally work here. That’s one of the reasons the Internal Revenue Service created the Individual Taxpayer Identification Number – or ITIN for short – back in 1996.

The ITIN Explained

The ITIN is just what it sounds like. It’s a tax-processing number issued by the IRS to make sure workers – even those who may not be documented – pay taxes. According to the American Immigration Council (AIC), even those who don’t have a Social Security number (SSN) regardless of their immigration status can get an ITIN. 

Interesting Note: While an ITIN is formatted much like a Social Security Number– both have nine digits – the ITIN always begins with the number nine. 

How Many ITINs Are in Use?

In January 2021, there were 5.4 million active ITINs, according to data from the Treasury Inspector General for Tax Administration. And more than 2.5 million federal tax returns were filed by workers with ITINs in 2019, according to the Urban Brookings Tax Policy Center, with a total reported tax liability of nearly $6 billion that year. 

Who Needs an ITIN Number?

Many people who have immigrated from other countries to the U.S. use ITINs.

Some residents live legally in the U.S. and are required to pay income taxes – but those who may not qualify for an SSN – also use an ITIN. According to the AIC and the Tax Policy Center, this group includes:

• Certain student visa holders.
• Some spouses and children of those with employment visas. 
• Foreign nationals living in the U.S. are required to file a tax return because of the number of days they worked.
• The dependent or spouse of a foreign national living in the U.S. on a temporary visa.
• A foreign national who is a professor, researcher, or student living in the U.S. and filing a U.S. tax return, but who otherwise doesn’t qualify for a SSN.
• Some survivors of domestic violence.

How to Apply for an ITIN

To receive an Individual Taxpayer Identification Number, you must apply through the IRS and provide original or certified documents, among other requirements. The Internal Revenue Service’s website offers a step-by-step guide explaining the process. 

There are several options for how to apply, including applying by mail with a completed tax return, going in person to an IRS Taxpayer Assistance Center, or using a Certifying Acceptance Agent (CAA). There’s even an ITIN documentation FAQ to help explain the differences between things like a certified document and a notarized document. 

Be Patient

Be warned, the IRS states on its website that the application process can take about seven weeks. And the process will likely take even longer during the IRS’s busy season.

Pro tip: It’s probably wise to avoid the months of March and April when millions of people are filing annual income tax returns in the U.S. 

Where to Find Help

Navigating particular processes in the U.S. can feel confusing, not to mention overwhelming, for those who haven’t been required to file federal taxes where they lived and worked previously. Fortunately, the IRS allows for authorized individuals and businesses known as Certifying Acceptance Agents to assist in this process. It’s important to note that some CAAs may charge a fee.

What is a Certifying Acceptance Agent? According to the IRS, CAAs can include tax professionals, colleges, financial institutions, and others who can:

• Review and authenticate documents
• Submit a completed Form W-7 and a certificate of accuracy
• Present copies of other paperwork and tax returns or exception documents 

Here’s a list of acceptance agents.

Limitations on ITIN Use

The IRS is pretty straightforward about what an ITIN can be used for, which is for federal tax reporting purposes only. Here are a few things the Internal Revenue Service says an ITIN can’t and won’t do:

• Make a dependent eligible for earned income tax credit purposes.
• Give eligibility for Social Security benefits.
• Allow someone to work in the United States.

With reporting by Casandra Andrews