While living or working in the United States, one may encounter two common identifiers: Social Security Numbers (SSNs) and Individual Taxpayer Identification Numbers (ITINs). These are essential identification numbers for filing taxes, employment, and financial matters. Although both bear distinctive features, they are produced by various governmental bodies and are critical for people to follow the tax legislation.

What is an SSN?

A Social Security Number (SSN) is a unique nine-digit number assigned to citizens, permanent residents, and, in certain circumstances, temporary residents of the United States by the Social Security Administration (SSA). The SSN was initially intended to evaluate one’s wages and Social Security payments. It later evolved to include other uses such as tax returns, credit applications, and identification.

An SSN is necessary to work legally in the United States and is provided when applying for a loan, a credit card, or even renting an apartment. Individuals and businesses utilize it to identify their Social Security Number, employers use it to file wages with the Internal Revenue Service (IRS), and financial institutions use it to confirm the identity of their customers.

Who Qualifies for an SSN?

An SSN is issued to individuals who are U.S. Citizens, green card holders, or non-citizen aliens who are allowed to work in the United States of America. Even though many foreign nationals working in the U.S. legally may not be eligible for Social Security, they are issued an SSN for tax purposes. However, not everyone applies for an SSN, such as individuals with no right to work in the United States.

What is an ITIN?

The individual taxpayer identification number (ITIN) is a nine-digit number assigned to individuals who must file a tax return in the US but are not eligible for an SSN. ITINs are used solely for tax purposes. However, such identification numbers do not entitle individuals to work or gain permission to receive any social security benefits.

An ITIN is an identification number issued to foreign nationals, non-resident aliens, and others who can not get an SSN to file a tax return in the United States. Individual Tax Identification Numbers (ITINs) ensure that, in cases where one is legally entitled to do so, the person fulfills the American statute on tax or is allowed to claim a tax deduction or a specific credit.

Who Needs an ITIN?

The following categories of people need an ITIN:

• Used by foreign persons who are required to file a tax return in the United States but cannot obtain an SSN.
• Applicants who are dependents of US citizens or residents and do not possess an SSN.
• Some of them have to file tax returns because they are non-resident aliens or have income from the US.
• The policy applies to foreign individuals receiving income from US investments or rentals of business and income-producing properties.
• Foreign students or scholars who might be required to file tax returns but cannot be issued an SSN.
• ITIN is mainly used when filing tax returns to the federal government and cannot be used to identify the holder. Unlike the SSN, it cannot be used to provide employment or even Social Security benefits.

How to Get an ITIN

To apply for an ITIN, you must file a form with the IRS. The application includes filling out Form W-7, submitting it with supporting documents and sending it by mail, in person, or through a Certifying Acceptance Agent (CAA).

Complete Form W-7

The first step in applying for an ITIN is to fill out an application form, namely the IRS Form W-7—Application for IRS Individual Taxpayer Identification Number. This form requires you to fill in your name, date of birth, country of citizenship, and reasons for filing a tax return in the USA.

To fill out Form W-7, one is supposed to indicate the reason for applying for the social security number. The top one is to file a U.S. federal tax return. However, other lawful grounds exist, including being a dependent or spouse of a citizen or resident of the United States or a nonresident with a tax obligation.

Gather Supporting Documents

Specifically, along with the Form W-7, you must provide evidence of identity and foreign status. The IRS accepts many documents for verification; however, the most preferred document is a passport.

If you cannot produce a passport, another form of ID could be a birth certificate, a national identification card, or a U.S. visa. The copies of all the documents should be certified or the original ones issued by a relevant government authority. As for the copies, the IRS does not accept notarized copies.

Attach Your Tax Return

An ITIN application usually requires a federal tax return to be filled out and submitted along with the other necessary documents. In this case, Form W-7 for individuals is accompanied by the tax return and other essential documents. A letter from a withholding agent is also required if the applicant is applying for an ITIN for a purpose other than income tax.

Submit Your Application

After completing Form W-7, you must assemble the necessary documents you will send to the IRS for approval. The three ways of applying include:

Mail: You can also submit your application through the mail to the ITIN Operation office of the Internal Revenue Service. We want to remind our clients that the originals of the documents submitted to us for processing will be returned to the owners upon completion of the process.

In-Person at an IRS Office: Some IRS offices provide services for ITIN applications. If you do this, you can have the documents verified in Person and avoid the need to post originals.

The IRS specifies Certifying Acceptance Agents (CAA) to assist individuals in completing the process of getting an ITIN. They can authenticate documents and transmit applications and other documents for you, which would be convenient.

Why is an ITIN Important?

An ITIN is issued to an individual who is a nonresident in the U.S. and is thus not eligible for an SSN but needs to file for taxes. It assists taxpayers in filing their returns, applying for tax exemptions, and meeting the legal requirements of the United States taxation system. Furthermore, certain financial institutions accept ITINs for account opening and credit facilities.

While ITIN does not provide the right to work, legal status, or access to benefits, it is a valuable tool that allows the person to pay taxes correctly.

How to Obtain an ITIN as a Foreigner from Abroad

If you have a reason that entitles you to an ITIN, you can contact the IRS directly, there are also providers who can assist you in obtaining an ITIN. As a foreigner from abroad, you can apply for an ITIN very easily with the help of the service provider TheITIN.com.

Final Thoughts about ITIN and SSN

SSNs and ITINs are different yet useful for people interacting with the U.S. tax and financial systems. An SSN is for United States citizens, residents, and those allowed to work, while an ITIN is for aliens who are required to file taxes but do not have the right to work in the United States.

Completing the proper forms and providing high-quality copies of the documents is advisable to avoid difficulties getting the ITIN. This paper explains the differences between the two so that people can efficiently perform their obligations and understand how the U.S. system works.