International Students: Itin Application Process Explained

International students can apply for an Individual Taxpayer Identification Number (ITIN) if they have a taxable income but are ineligible for a Social Security Number (SSN). An ITIN is a unique tax-processing number issued by the Internal Revenue Service (IRS) for nonresidents who need to file a tax return. International students can apply for an ITIN by submitting a Form W-7 with a U.S. tax return. They may also need to provide additional documentation, such as a No Employment Letter or a copy of their scholarship or fellowship letter. It's important to note that ITIN is for non-wage income reporting, while an SSN is required for employment.

International students can apply for an ITIN if they have non-wage income to report on their taxes

International students can obtain an Individual Taxpayer Identification Number (ITIN) if they have non-wage income to report on their taxes. An ITIN is a unique tax-processing number issued by the Internal Revenue Service (IRS) to individuals who pay taxes but are ineligible for a Social Security Number (SSN). While SSNs are typically issued to non-residents who are employed, ITINs are intended for those with taxable income who are not eligible for an SSN.

International students on an F1 visa who are not employed but have non-wage income, such as scholarships, grants, or fellowships, may need an ITIN to file their taxes. It is important to note that if a scholarship, grant, or fellowship is applied directly against tuition or received from a foreign entity, an ITIN is usually not required to report taxes on it. However, if the income exceeds the cost of tuition and fees, it may become taxable, necessitating an ITIN.

To apply for an ITIN, international students must submit Form W-7, "Application for IRS Individual Taxpayer Identification Number," along with their tax returns. Additionally, they may need a No Employment Letter, which can be obtained by presenting valid immigration documents to the appropriate office. Processing times for ITIN applications can vary, typically taking about five weeks, with longer processing times during peak tax seasons.

Obtaining an ITIN as an international student is essential for accurately reporting non-wage income and fulfilling tax obligations while studying in the United States. It is recommended that students initiate the process early and seek guidance from their host institution's international student services or relevant offices to ensure they meet all requirements and deadlines.

ITIN is useful for F1 visa holders who are not allowed to work but need to file tax returns

International students with F-1 visas are generally considered nonresident aliens for tax purposes and are taxed only on US-sourced income. They are required to file a US tax return (Form 1040-NR) if they have earned income from US sources during the previous calendar year. This includes income from scholarships, grants, fellowships, or any other sources that are taxable under the Internal Revenue Code.

Even if an F-1 visa holder did not earn any income, they may still be required to file Form 8843. Additionally, F-1 visa holders who are on CPT (Curricular Practical Training) must file Form 1040-NR as they are considered engaged in a trade or business in the US. Those who earn an income from OPT (Optional Practical Training) are also required to pay tax and fill out a W-4 form with their employer.

To file their taxes, F-1 visa holders will need either a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN). An ITIN is issued by the IRS to individuals who need to report income but are ineligible to obtain an SSN. International students can become eligible for an SSN once they have a job, including on-campus jobs and off-campus work.

Therefore, ITINs are useful for F-1 visa holders who are not allowed to work but need to file tax returns, as they provide a way to report taxable non-wage income, such as scholarships, grants, fellowships, or other sources. Without an ITIN, F-1 visa holders may face challenges in complying with tax requirements, especially if they have non-wage income to report. By obtaining an ITIN, these individuals can fulfil their tax obligations and maintain their legal status while in the US.

International students with a job can apply for an SSN instead of an ITIN

International students in the United States need to file tax forms each year with the Internal Revenue Service (IRS), the federal agency that collects taxes. If an international student has a job, they can apply for a Social Security Number (SSN) instead of an Individual Taxpayer Identification Number (ITIN).

An ITIN is a unique tax-processing number issued by the IRS for those who pay taxes but are ineligible for an SSN. International students who are not working but still need to report taxable non-wage income to the IRS as part of their tax filing process will need to apply for an ITIN. Examples of taxable non-wage income for international students include scholarships, grants, or fellowships received. However, if a scholarship, grant, or fellowship is applied directly against tuition or is received from a foreign entity, there is no need to apply for an ITIN to report taxes on it.

International students with a job, including on-campus jobs, are eligible to apply for an SSN. To get an SSN, you must show the Social Security Administration that you are eligible to work in the US. Newly arrived international students and scholars in F-1 or J-1 visa status being paid by the university (e.g. compensation, taxable scholarship, fellowship, prize, or award) are advised to apply for an SSN as soon as possible. The processing takes 3-4 weeks, but you should only need to do it once as an SSN is valid for life.

To apply for an SSN, you can complete the social security application online and then visit your local SSA office to show them your documents in person. You will need to apply on or after the start date on your EAD card. If you have received an on-campus job offer, you must apply for on-campus work authorization by submitting an "On-campus Employment" request.

International students can apply for an ITIN if they receive a scholarship, fellowship, or grant that is not from their university

International students can apply for an Individual Taxpayer Identification Number (ITIN) if they are ineligible for a Social Security Number (SSN) and need to report taxable income. SSNs are only issued to non-residents who are employed, whereas an ITIN is for those who pay taxes but are not eligible for an SSN.

International students on an F1 visa are not permitted to work off-campus but may work on-campus or in specific circumstances with CPT or OPT approval. If an international student is working, they will need an SSN. However, if they have non-wage income, such as scholarships, grants, or fellowships, they may need to apply for an ITIN. It is important to note that if a scholarship, grant, or fellowship is applied directly against tuition or received from a foreign entity, an ITIN is not required to report taxes on it.

For example, if an international student at NYU receives a US-sourced scholarship, fellowship, or grant that is not from NYU, they will need to follow specific steps to apply for an ITIN. They will need to access the Tax page and use the Sprintax link, which will identify them as needing an ITIN and provide them with Form W-7 for their application. They will also need to obtain a No Employment Letter from OGS to submit with their application.

Similarly, at the University of Washington (UW), students receiving scholarships or fellowships from sources other than UW can apply for an ITIN support letter from ISS. They will need to provide a copy of their scholarship or fellowship letter, and ISS will prepare the support letter for them. With this letter, they can then apply for an ITIN through the Internal Revenue Services (IRS).

ITIN support letters can be provided by the ISS office for students receiving scholarships or fellowships

International students studying in the United States who need to file tax forms each year with the Internal Revenue Service (IRS) may require an Individual Taxpayer Identification Number (ITIN). An ITIN is a unique tax-processing number issued by the IRS for those who pay taxes but are ineligible to obtain an SSN. International students can become eligible for an SSN as soon as they have a job, including on-campus jobs and off-campus work.

If an international student does not have an SSN, they will need an ITIN to report any non-wage income when filing taxes. This can include taxable scholarships, grants, or fellowships received. However, if a scholarship, grant, or fellowship is applied directly against tuition or is received from a foreign entity, there is no need to apply for an ITIN to report taxes on it.

F or M students who are ineligible for an SSN must apply for an ITIN. To apply, students must submit a Form W-7, "Application for IRS Individual Taxpayer Identification Number", with a U.S. tax return. They will also need to provide a grant, fellowship, or scholarship award letter indicating the amount and details. Additionally, students are required to submit a passport personal information page and a passport validity page showing the expiration date (if separate).

Frequently asked questions