
International students who are not working but have non-wage income to report on their taxes will need to apply for an Individual Taxpayer Identification Number (ITIN). This is a unique tax-processing number issued by the Internal Revenue Service (IRS) for those who pay taxes but are not eligible for a Social Security Number (SSN). International students can apply for an ITIN at any time of the year where they have a tax filing requirement.
What You'll Learn
- International students can apply for an ITIN at any time of the year
- An ITIN is for international students who are not eligible for an SSN
- International students can use Sprintax to prepare their US federal tax return and get their ITIN
- International students need an ITIN to pay taxes on taxable scholarships, grants, or fellowships
- International students can coordinate with their international student office to submit their ITIN application
International students can apply for an ITIN at any time of the year
International students can apply for an Individual Taxpayer Identification Number (ITIN) at any time of the year. 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 a Social Security Number (SSN). International students on F-1 or J-1 visas who receive taxable scholarships or fellowships or other non-wage income may need an ITIN.
To apply for an ITIN, international students can follow these steps:
- Visit the IRS website to access the application for an IRS Individual Taxpayer Identification Number, also known as Form W-7.
- Complete Form W-7 and gather the necessary documents to establish your foreign status and identity. This can include your valid passport or passport containing a valid U.S. visa.
- Submit your application by mailing it to the IRS address provided, along with the required supporting documents.
- Allow for a processing time of approximately 7-11 weeks for the IRS to issue your ITIN.
- Check the status of your ITIN application by calling the IRS toll-free at 1-800-829-1040.
It is important to note that international students who are eligible for an SSN should apply for one instead of an ITIN. The SSN is used for both federal, state, and local tax purposes, while the ITIN is only for federal tax purposes. Additionally, the ITIN expires and needs to be renewed, whereas the SSN given to international students does not expire.
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An ITIN is for international students who 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 and off-campus work. However, if an international student is not eligible for an SSN, they can apply for an ITIN. An ITIN is a unique, 9-digit tax-processing number issued by the IRS for those who pay taxes but are not eligible for an SSN.
To apply for an ITIN, international students must file Form W-7, Application for IRS Individual Taxpayer Identification Number, and submit identity documents and either a federal tax return or other documentation to show the federal tax purpose for which they need an ITIN. The identity documents must verify the applicant's identity and foreign status. Most applicants must include original documents. Nonresident aliens claiming tax treaty benefits must submit original documents or copies certified by the issuing agency.
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. After receiving an ITIN, international students may be able to use it to access U.S. financial products, such as applying for a bank account and credit card.
It is important to note that if an international student does not have any non-wage income to report, they will not need or be eligible for an ITIN when filing their taxes. Examples of non-wage income include taxable scholarships, grants, fellowships, passive investing income, and other sources such as real estate capital gains and gambling winnings.
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International students can use Sprintax to prepare their US federal tax return and get their ITIN
International students in the US are eligible to apply for an SSN if they have a job, including on-campus jobs. If they are not working but have non-wage income to report, they will need to apply for an ITIN. Non-wage income can include taxable scholarships, grants, or fellowships.
Sprintax is a leading online federal e-filing and state tax return self-preparation software for US nonresidents. It is approved by the IRS for federal tax e-filing and state tax return preparation. It helps thousands of international students, scholars, and short-term working visa participants to file their IRS-compliant, US nonresident tax returns.
Sprintax provides a range of support materials, including Q&A webinars, tax filing guides, and 24/7 live chat support. The software is user-friendly, and the support staff is knowledgeable and quick to answer any queries.
With Sprintax, international students can prepare their nonresident federal, state, and FICA tax returns, Form 8843, and ITIN applications. The tax filing deadline usually falls on April 15 of the following year for which the tax return is being prepared. If additional taxes are owed, they can be paid by check, bank transfer, or credit/debit card.
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International students need an ITIN to pay taxes on taxable scholarships, grants, or fellowships
International students can apply for a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN) for use on tax-related documents. An SSN is for those who are eligible and can be used for a variety of unofficial purposes, such as opening a bank account or credit card. An ITIN is for international students who are not eligible for an SSN.
International students need an ITIN or SSN to pay taxes on taxable scholarships, grants, or fellowships. 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. However, if the scholarship, grant, or fellowship is taxable, international students may need to make estimated tax payments on the additional income. In general, U.S.-sourced taxable scholarships, fellowships, and grants that do not represent compensation for services are subject to withholding when paid to nonresident aliens. The withholding tax rate is 30%, but this may be reduced to 14% if the nonresident alien is a student who is temporarily present in the U.S. with an "F," "J," "M," or "Q" visa.
International students can apply for an ITIN at any time if they have a tax filing requirement. They 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. After receiving an ITIN, international students may be able to use it to access U.S. financial products, such as applying for a bank account and credit card.
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International students can coordinate with their international student office to submit their ITIN application
If an international student is working, they are eligible to apply for an SSN, which can be used for tax purposes. However, if an international student is not working but still needs to report taxable non-wage income to the IRS, they will need to apply for an ITIN. Examples of taxable non-wage income include scholarships, grants, and fellowships, passive investing income, and other sources such as real estate capital gains and gambling winnings.
International students can work with their international student office to collect, verify, and submit their ITIN application once they have arrived on campus. The application process can be initiated at any time of the year when there is a tax filing requirement. The IRS typically takes 7-11 weeks to issue an ITIN. During this time, students can check the status of their application by calling the IRS.
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. Students should check with the issuing institution to determine if their scholarship, grant, or fellowship is taxable. Additionally, international students should refer to the IRS Publication 1915 PDF for detailed information about ITINs and ensure they have the necessary documents before submitting their application.
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