Savanna Hoffman
International students in the United States may need to apply for an Individual Taxpayer Identification Number (ITIN) to file tax returns. An ITIN is a unique tax-processing number issued by the Internal Revenue Service (IRS) to individuals who need to report taxable income but are ineligible to obtain a Social Security Number (SSN). While international students are eligible to apply for an SSN if they have a job, they may require an ITIN if they have non-wage income to report, such as taxable scholarships, grants, or fellowships or passive investment income. To apply for an ITIN, international students typically need to submit Form W-7, Application for IRS Individual Taxpayer Identification Number, along with supporting documentation and a U.S. tax return.
| Characteristics | Values |
|---|---|
| Who can apply for ITIN? | Aliens/non-residents who need to file a tax return due to taxable income but are ineligible for a Social Security Number (SSN). |
| Who is ineligible for ITIN? | Those who are employed or intend to start working soon. |
| Who needs to apply for ITIN? | International students who are not working but have non-wage income to report on their taxes. |
| What is non-wage income? | Taxable scholarships, grants, or fellowships; passive investing income such as interest income, dividend payments, and capital gains on U.S. stocks; other non-employment income such as real estate capital gains and gambling winnings. |
| What is the application process for ITIN? | Submit Form W-7, "Application for IRS Individual Taxpayer Identification Number," with a U.S. tax return to the Internal Revenue Service (IRS). |
| What is the purpose of ITIN? | To report income when filing taxes, as well as to apply for U.S. financial products like bank accounts and credit cards. |
Explore related products
What You'll Learn
International students with non-wage income need an ITIN
International students in the United States need to file tax forms each year with the Internal Revenue Service (IRS), the US agency that collects federal taxes. Generally, aliens who enter the US may apply for either a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN) for use on tax-related documents.
International students are eligible to apply for an SSN as soon as they have a job, including on-campus jobs and off-campus work. However, if an international student is not working yet but still has non-wage income to report on their taxes, they will need to apply for an ITIN. Common examples of taxable non-wage income for international students include scholarships, grants, or fellowships received, as well as passive investing income such as interest income, dividend payments, and capital gains on US stocks. It is important to check with the issuing institution on whether your scholarship, grant, or fellowship is taxable.
To apply for an ITIN, an international student must submit a Form W-7, "Application for IRS Individual Taxpayer Identification Number," with a US tax return. International students can coordinate with their international student office to collect, verify, and submit their application once they have arrived on campus. It takes the IRS approximately 7-11 weeks to issue an ITIN.
Beyond tax filings, an ITIN may be beneficial for international students when applying for US financial products like bank accounts and credit cards. With many US banks, it is possible to apply for a bank account and credit card using an ITIN in place of an SSN.
Transferring from State to Community College as an International Student
You may want to see also
Explore related products
International students with taxable scholarships need 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 is working, they are eligible to apply for a Social Security Number (SSN) to report their wage income. However, if they are not working but still have non-wage income to report, they will need to apply for an Individual Taxpayer Identification Number (ITIN).
ITIN is a unique tax-processing number issued by the IRS to individuals who pay taxes but are ineligible for an SSN. Common examples of taxable non-wage income for international students include scholarships, grants, and fellowships received from U.S. sources. If the scholarship, grant, or fellowship is applied directly against tuition or received from a foreign entity, there is no need to apply for an ITIN to report taxes on it.
To apply for an ITIN, an international student must submit Form W-7, "Application for IRS Individual Taxpayer Identification Number," with a U.S. tax return. They may also require documents that prove their identity and foreign status, such as a foreign passport and visa stamp. It is recommended to check with the issuing institution to determine whether the scholarship, grant, or fellowship is taxable and if a certification letter is required.
Obtaining an ITIN as an international student offers benefits beyond tax filings. It can facilitate access to U.S. financial products, such as applying for bank accounts and credit cards, even without an established U.S. credit history.
International Students: Federal Tax Exemption Status
You may want to see also
Explore related products
International students with F1 visas need an ITIN
International students with F1 visas need an Individual Taxpayer Identification Number (ITIN) to pay taxes on non-wage income if they do not have a Social Security Number (SSN). An ITIN is a unique tax-processing number issued by the Internal Revenue Service (IRS) for those who pay taxes but are not eligible for an SSN. International students are eligible to apply for an SSN as soon as they have a job, including on-campus jobs, as well as off-campus work. However, if you are not working yet but still have non-wage income to report on your taxes, you will need to apply for an ITIN.
Common examples of taxable non-wage income for international students include scholarships, grants, or fellowships received from US sources. In these cases, you must submit a certification letter with your full name and SEVIS number from your university in place of submitting a tax return. Check with your university's international student office for the requirements for a certification letter. If a scholarship, grant, or fellowship is applied directly against tuition or received from a foreign entity, there is no need to apply for an ITIN to report taxes on it. Make sure to check with the issuing institution on whether your scholarship, grant, or fellowship is taxable.
To apply for an ITIN, an F1 student must submit a Form W-7, "Application for IRS Individual Taxpayer Identification Number," with a US tax return. You can also use Form W-7 (SP) in Spanish. It takes the IRS approximately 7-11 weeks to issue your ITIN. Once you have received your ITIN, you may be able to use it to access US financial products in addition to filing your taxes, including applying for bank accounts and credit cards.
It is important to note that even if you did not earn any income during your time as an F1 student in the US, you still have a filing requirement. You must file a Form 8843, "Statement for Exempt Individuals and Individuals With a Medical Condition," with the IRS before the deadline. If you had no US income and are only filing Form 8843, the deadline is June 15, 2025. Form 8843 is not an income tax return but a statement required by the US government for certain nonresident aliens who are in the US on F1, J-1, F-2, or J-2 visas for purposes of the substantial presence test. The deadline for all F1 students to file their tax documents is April 15, 2025. Missing the deadline may lead to penalties and jeopardize your chances of securing a US visa or Green Card in the future.
Yonsei University: A Guide for International Applicants
You may want to see also
Explore related products
International students with passive income need an ITIN
International students in the United States with passive income need an Individual Taxpayer Identification Number (ITIN) to pay taxes on non-wage income if they do not have a Social Security Number (SSN). An ITIN is a unique tax-processing number issued by the Internal Revenue Service (IRS) to individuals who need to report income but are ineligible for an SSN.
International students are eligible to apply for an SSN as soon as they have a job, including on-campus jobs, as well as off-campus work. If you are an international student with a job, you should apply for an SSN as soon as possible. You will need to report your SSN to your school registrar in person.
If you are not working but still have non-wage income to report on your taxes, you will need to apply for an ITIN. Common examples of taxable non-wage income for international students include scholarships, grants, fellowships, interest income, dividend payments, capital gains on US stocks, real estate capital gains, and gambling winnings.
To apply for an ITIN, an international student must submit Form W-7, "Application for IRS Individual Taxpayer Identification Number," with a US tax return. You can coordinate with your international student office to collect, verify, and submit your application once you have arrived on campus. It will take the IRS approximately 7-11 weeks to issue your ITIN.
Alcohol Laws for International Students in the US
You may want to see also
International students with a job can apply for an SSN
International students with a job can apply for a Social Security Number (SSN). An SSN is a 9-digit employee identification number issued by the US Social Security Administration (SSA). It is used for tax and employment reporting purposes, such as reporting an employee's earnings.
To apply for an SSN, international students must first obtain valid employment authorization. For on-campus employment, a letter from the college department confirming the job offer is required. The letter must be printed on department letterhead, signed, and include the job title. For off-campus employment, F-1 students must provide evidence of lawful F-1 employment, such as authorization for curricular practical training (CPT) or optional practical training (OPT). J-1 students must also show evidence of employment and be in valid J-1 status, registering for a full course of study.
It is important to note that an SSN is not a work permit, and eligibility for an SSN is based on an individual's eligibility to work in the United States. International students who are not working but have non-wage income to report, such as taxable scholarships, grants, or fellowships, may need to apply for an Individual Taxpayer Identification Number (ITIN) instead.
California Dream Act: International Students' Guide to Application
You may want to see also
Frequently asked questions
An Individual Taxpayer Identification Number (ITIN) is a unique tax-processing number issued by the IRS for those who pay taxes but are not eligible for an SSN.
As an international student, you will need an ITIN if you need to report taxable non-wage income (e.g. scholarships, grants, fellowships, investments, etc.) but do not have an SSN. If you are employed or intend to start working soon, you should apply for an SSN instead.
To apply for an ITIN, you must submit Form W-7, "Application for IRS Individual Taxpayer Identification Number," with a U.S. tax return. You may also need additional documentation, such as a No Employment Letter or proof of scholarship, fellowship, or grant income.
