An Individual Taxpayer Identification Number (ITIN) is a nine-digit number issued by the IRS to help immigrants comply with U.S. tax laws and requirements. It is designed for individuals who may be ineligible for a Social Security Number (SSN) but have tax obligations in the United States.
An ITIN can be used for various purposes, including:
1. Filing Taxes: immigrants who earn income in the United States may be required to file tax returns, and an ITIN enables them to fulfill this obligation. Having an ITIN ensures that immigrants can comply with U.S. tax laws, avoiding potential penalties for non-compliance or negatively affecting their immigration status.
1. Claiming Tax Benefits: with an ITIN, some immigrants may be eligible to claim certain tax credits and deductions available under U.S. tax code. For example, some ITIN holders are eligible for the Child Tax Credit (CTC)
2. Opening Bank Accounts/Applying for Loans: many financial institutions require a taxpayer identification number to open accounts, and an ITIN may serve this purpose. Having an ITIN can be essential for establishing credit history and accessing financial services.
3. Obtaining a Driver’s License: some states allow ITINs to be used instead of a SSN to receive a driver’s license, driver’s permit, or identification card.
4. Proving U.S. Residency: an immigrant may need to prove how long he or she has been in the U.S. when applying for certain immigration benefits and having a tax return filed using an ITIN can be used as evidence.
It is important to know that an ITIN CANNOT be used to demonstrate:
1. Lawful presence in the United States. An ITIN is not a legal immigration status.
2. Work authorization in the U.S. An ITIN does not provide work authorization and cannot be used on an I-9 form.
3. Eligibility for Social Security benefits. An ITIN does not make an individual eligible for Social Security benefits.
Feel free to contact Bennett & Harker to learn more about the ITIN and how to apply for one. Please note that the information in this post should not be construed as legal advice.
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