Ibrahim Gardner
International students in the United States may need to apply for a Tax Identification Number (ITIN) if they are not eligible for a Social Security Number (SSN). An ITIN is a unique tax-processing number issued by the IRS to individuals who pay taxes but are ineligible for an SSN. International students on F-1 or J-1 visas who receive taxable scholarships, fellowships, or other non-wage income may need to apply for an ITIN. However, if the scholarship is applied directly against tuition or received from a foreign entity, an ITIN is usually not required. International students with on-campus or off-campus jobs are typically eligible for an SSN and should apply for one instead of an ITIN.
| Characteristics | Values |
|---|---|
| Who can apply for an ITIN? | Aliens/non-residents who are not eligible for an SSN |
| Who is eligible for an SSN? | Non-residents who have an employment offer |
| When can international students apply for an ITIN? | At any time of the year when there is a tax filing requirement |
| What is the processing time for an ITIN? | 7-11 weeks |
| What is the processing time for an SSN? | 3-4 weeks |
| What is the use of an ITIN? | Filing taxes during tax season reporting |
| What are some common sources of non-wage income? | Taxable scholarships, grants, fellowships, real estate capital gains, gambling winnings, interest income, dividend payments, and capital gains on U.S. stocks |
| Can international students with non-wage income skip applying for an ITIN? | No, they will need an ITIN to report taxable non-wage income to the IRS as part of their tax filing process |
| Can international students without non-wage income apply for an ITIN? | No, they will not be eligible for an ITIN |
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What You'll Learn
International students' eligibility for SSN
International students can apply for a Social Security Number (SSN) if they have valid employment authorization. This can include on-campus employment, off-campus employment, or practical training. Students must meet eligibility requirements, which vary depending on immigration status. For example, F-1 students must provide evidence of lawful F-1 employment, such as an on-campus job or authorization for curricular practical training (CPT) or optional practical training (OPT). J-1 students must have valid immigration documents, including a passport, I-20 or DS-2019, and an I-94 card or electronic I-94 notated "J-1 D/S." J-2 dependents with employment authorization are also eligible to apply for an SSN with the appropriate documents.
International students can apply for an SSN in person at a local Social Security Administration office. They will need to bring their employment authorization confirmation, an employment offer letter, and their immigration documents. It is recommended that students wait 2-3 weeks after arriving in the US before requesting an SSN. The Social Security Administration will verify the student's immigration information before mailing their SSN and card, which can take 2-4 weeks.
It is important to note that simply having an SSN does not grant legal authorization to work in the US. However, if an international student has been authorized to work, they are required to apply for and obtain an SSN. An SSN is used for tax and employment reporting purposes, such as reporting an employee's earnings or a student's taxable scholarship benefits.
If an international student is not working but has non-wage income to report, such as taxable scholarships, grants, or fellowships, they will need to apply for 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 not eligible for an SSN. 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.
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Taxable non-wage income
International students are eligible to apply for an SSN if they have a job, including on-campus jobs and off-campus work. If an international student is not working but has non-wage income to report on their taxes, they will need to apply for an ITIN.
- Royalties: These are generally reported in Part I of Schedule E (Form 1040 or Form 1040-SR), Supplemental Income and Loss.
- Bartering: This is the exchange of goods or services without the direct exchange of money. The fair market value of the property or services received through bartering must be included in your income.
- Childcare services: If you provide childcare in someone else's home or your own home, the pay you receive must be included in your income.
- Passive investment income: This includes interest income, dividend payments, and capital gains on stocks or other investments.
- Real estate capital gains: Profits from the sale of real estate may be subject to taxation.
- Gambling winnings: Any income from gambling is generally considered taxable income.
- Taxable scholarships, grants, or fellowships: If the funds from a scholarship, grant, or fellowship exceed the costs of tuition and required educational expenses, the excess amount may be taxable. However, if the scholarship is applied directly against tuition or received from a foreign entity, it is typically not taxable.
It is important to note that the rules and requirements for taxable income may vary depending on your specific circumstances and location. For detailed and up-to-date information, it is recommended to refer to the Internal Revenue Service (IRS) guidelines and seek professional tax advice.
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ITIN application process
International students are eligible to apply for an SSN as soon as they have a job. If you are not working yet but 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 taxable scholarships, grants, fellowships received, passive investing income, and other non-wage income from U.S. sources. If your scholarship, grant, or fellowship is applied directly against tuition or you are receiving it from a foreign entity, there is no need to apply for an ITIN to report taxes on it.
The ITIN application process requires proof of your identification. The IRS accepts 13 types of documents as proof of identity to obtain an ITIN. An original passport is the only document accepted for both identity and foreign status. If you do not have a passport, you must provide a combination of current documents that contain expiration dates, show your name and photograph, and support your claim of foreign status. The IRS will accept a combination of two or more documents in place of a passport, such as a National Identification Card.
You can apply for an ITIN at any time of the year when you have a tax filing requirement. As an international student, you can coordinate with your international student office to collect, verify, and submit your application once you have arrived on campus. The IRS takes approximately 7-11 weeks to issue an ITIN. You can check the status of your ITIN number application by calling the IRS at 1-800-829-1040.
Additionally, you can contact a Certified Acceptance Agent to review your identification documents for authenticity, so you don't have to send the original to the IRS. They are authorized by the IRS to assist individuals who do not qualify for an SSN but still need an ITIN. They will facilitate the application process by reviewing the necessary documents and forwarding the completed forms to the IRS.
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ITIN support letters
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 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 taxable scholarships, grants, or fellowships received. If a scholarship, grant, or fellowship is applied directly against tuition or you are receiving it from a foreign entity, there is no need to apply for an ITIN to report taxes on it.
An Individual Taxpayer Identification Number (ITIN) is a nine-digit number issued by the Internal Revenue Service (IRS), which is the U.S. tax collection agency. The number is for non-residents who need to file a tax return because of taxable income but are not eligible for an SSN.
International students can coordinate with their international student office to collect, verify, and submit their ITIN application once they have arrived on campus. The ITIN support letter is prepared by the International Student Services (ISS) and can be picked up in person once it is ready. The processing time for the support letter is 2-3 business weeks.
Students can apply for an ITIN at any time of the year when they have a tax filing requirement. The application can be submitted by mail or in person, and it typically takes the IRS around 7-11 weeks to issue the ITIN.
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Alternatives to SSN for non-residents
International students who are not working but still need to report taxable non-wage income to the IRS can apply for an Individual Taxpayer Identification Number (ITIN). This is a nine-digit number issued by the Internal Revenue Service (IRS) to individuals who are not eligible for a Social Security Number (SSN). Examples of taxable non-wage income for international students include scholarships, grants, fellowships, interest income, dividend payments, and capital gains on U.S. stocks. 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.
To apply for an ITIN, international students can coordinate with their international student office once they arrive on campus. The application process typically takes 7-11 weeks, and the status can be checked by calling the IRS. An ITIN can be used to access certain U.S. financial products, such as opening a bank account or applying for a credit card, at some U.S. banks.
For those seeking alternatives to traditional banks that require an SSN, there are a few options available. Mercury, for example, is an online banking platform that offers business checking and savings accounts with no monthly fees. Globalfy provides similar banking services to customers worldwide. Additionally, Wise, a money transfer operator, offers a Multi-Currency Account, a Visa debit card, and international transfers at low costs. Payoneer is another alternative that offers a multi-currency account for global payments and withdrawals.
While these alternatives provide non-residents with options for managing their finances without an SSN, it is important to carefully review the features, fees, and limitations of each service to determine which best suits one's needs.
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Frequently asked questions
ITIN stands for Individual Taxpayer Identification Number. It is a unique, nine-digit number issued by the IRS for tax processing for those who pay taxes but are not eligible for an SSN.
Yes, international students who are not working but have non-wage income to report on their taxes will need to apply for an ITIN. Common examples of taxable non-wage income for international students include scholarships, grants, fellowships, passive investing income, and capital gains.
International students can coordinate with their international student office to collect, verify, and submit their ITIN application once they have arrived on campus. The application is then processed by the IRS, which takes approximately 7-11 weeks.
An SSN, or Social Security Number, is issued to non-residents who have an employment offer. International students can apply for an SSN as soon as they have a job, including on-campus jobs. An ITIN, on the other hand, is for international students who are not eligible for an SSN and need to report their non-wage income for tax purposes.
