Douglas Olsen
International students studying in the United States may need to apply for an Individual Taxpayer Identification Number (ITIN) if they are earning non-wage income such as scholarships, grants, or fellowships and are not eligible for a Social Security Number (SSN). ITINs are issued by the Internal Revenue Service (IRS) and are used for tax processing. International students can apply for an ITIN by mailing their W-7 form, tax return, proof of identity, and foreign status documents to the IRS, or by applying in person through an IRS-authorized Certifying Acceptance Agent. The processing time for an ITIN application is generally between 6 to 8 weeks, although some sources state it can take up to 7 or even 11 weeks.
| Characteristics | Values |
|---|---|
| Who can apply for ITIN? | Aliens/individuals who are ineligible for an SSN, including international students |
| What is ITIN? | A unique tax-processing number issued by the IRS |
| When to apply for ITIN? | As early as possible, since the IRS takes 2-3 months to process applications |
| Where to apply for ITIN? | Mail application to: Internal Revenue Service Austin Service Center ITIN Operation P.O. Box 149342 Austin, TX 78714-9342 |
| Why apply for ITIN? | To report taxable non-wage income, such as scholarships, grants, or fellowships |
| How to apply for ITIN? | Mail W-7, tax return, proof of identity, and foreign status documents to the IRS |
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What You'll Learn
ITIN vs. SSN
International students can apply for an Individual Taxpayer Identification Number (ITIN) or a Social Security Number (SSN). Both are nine-digit numbers used as personal identifiers in the United States. However, there are some key differences between the two.
An ITIN is a tax-processing number issued by the Internal Revenue Service (IRS) to individuals who need to file a tax return but are not eligible for an SSN. This includes international students who have taxable non-wage income, such as scholarships, grants, fellowships, or investments, but are not employed. ITINs allow these individuals to comply with US tax laws by filing tax returns. They can also be used to open bank accounts, secure loans, and provide proof of residency. However, ITINs cannot be used as proof of work authorization and do not provide legal immigration status.
On the other hand, an SSN is issued by the Social Security Administration (SSA) to US citizens, permanent residents, and eligible noncitizens authorized to work in the US. An SSN is required for various purposes, including employment, taxation, and accessing government benefits and services. International students can apply for an SSN as soon as they have a job, including on-campus jobs and off-campus work.
In summary, the main difference between ITIN and SSN is that an ITIN is primarily for tax processing, while an SSN is used for a broader range of purposes, including employment and accessing government services. International students who are not working but have taxable non-wage income would need an ITIN, while those who are employed would need an SSN.
It's important to note that the process of applying for an ITIN or SSN as an international student may vary, and there may be additional requirements or restrictions. It is always best to check with official government sources or seek professional advice for the most accurate and up-to-date information.
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Who needs an ITIN?
An Individual Taxpayer Identification Number (ITIN) is a unique tax-processing number issued by the Internal Revenue Service (IRS) to individuals who need to report income but are ineligible to obtain a Social Security Number (SSN) from the Social Security Administration.
International students who are not eligible for an SSN because they are not working may need to apply for an ITIN to report any non-wage income when filing taxes. Common examples of taxable non-wage income for international students include scholarships, grants, fellowships, and other investment income such as interest income, dividend payments, and capital gains on US 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 usually not required to report taxes on that income.
International students can become eligible for an SSN if they obtain employment, including on-campus jobs and off-campus work. Once an individual becomes eligible for an SSN, they must apply for one, and the IRS must be notified in writing.
The process of applying for an ITIN can take approximately 6-8 weeks, and the IRS provides several options for application, including mailing the required documents to the IRS or applying in person through an IRS-authorized Certifying Acceptance Agent. It is recommended that international students apply for an ITIN or SSN as early as possible, as the process can take several months, and having an ITIN or SSN may be necessary for filing taxes and claiming tax treaty benefits.
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How to apply for an ITIN
International students can apply for an Individual Taxpayer Identification Number (ITIN) if they are not working but have non-wage income to report on their taxes. Common examples of taxable non-wage income for international students include scholarships, grants, fellowships, interest income, dividend payments, capital gains on U.S. stocks, real estate capital gains, and gambling winnings.
If you are an international student and you only have wage income from employment, you are eligible to apply for a Social Security Number (SSN) instead.
To apply for an ITIN, you will need to submit your application to the Internal Revenue Service (IRS) by mail. You can apply at any time of the year where you have a tax filing requirement. The IRS recommends applying as soon as possible, as it usually takes up to 2-3 months for ITIN applications to be processed. Here is a list of steps to follow when applying for an ITIN:
- Check with your university's international student office on the requirements for a certification letter, and refer to the IRS W-7 instructions for detailed information on the application process.
- If you have a tax treaty, you must also submit a W-8BEN with your application.
- Once you have all your documents in order, mail them to the IRS at the following address: Internal Revenue Service ITIN Operations P.O. Box 149342 Austin, TX 78714-9342.
- After your request is approved, you will be notified by email or InterLink. Pick up your letter at the ISSS front desk of MacMillan Hall on the second floor.
- You can check the status of your ITIN number application by calling the IRS toll-free at 1-800-829-1040.
Please note that if you apply for an ITIN at the same time as you file your tax forms, you will be required to submit your actual passport, F-1 or J-1 visa, and I-20 or DS-2019. These documents will not be returned to you until your ITIN application is processed, which may cause problems for travel plans during break periods. Additionally, new students are not eligible to apply for an ITIN until approximately two weeks after the start of their first semester of study.
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Processing time
International students can apply for an Individual Taxpayer Identification Number (ITIN) if they are not eligible for a Social Security Number (SSN) but need to report taxable non-wage income to the Internal Revenue Service (IRS). This may include situations where students have received scholarships, grants, or fellowships, or have other non-wage income such as real estate capital gains or gambling winnings.
Regarding the processing time for ITIN applications, the Internal Revenue Service (IRS) typically takes around 2-3 months to process applications. However, it is recommended that students apply as early as possible, as processing times may vary throughout the year and can impact the timely completion of federal tax filings.
The anticipated wait time for an ITIN is estimated to be 6-8 weeks. However, it is important to plan for potential delays, especially during busier periods for the IRS. To avoid complications, students should aim to have their applications submitted well before the tax filing deadline in April.
To expedite the process, students can apply for an ITIN as soon as they commence their studies. New students at some universities may need to wait approximately two weeks after the start of their first semester before becoming eligible to apply for an ITIN.
It is worth noting that students who apply for an ITIN simultaneously with their tax filings will be required to submit their original passport and visa documents, which will not be returned until the ITIN application is processed. This can cause disruptions to travel plans during breaks, so advance planning is crucial.
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ITIN expiration
International students can apply for an Individual Taxpayer Identification Number (ITIN) if they are not eligible for a Social Security Number (SSN). An ITIN is a 9-digit number issued by the IRS for federal tax purposes. International students may need to report taxable non-wage income, such as scholarships, grants, fellowships, or investments, and require an ITIN to do so.
An ITIN does not need to be renewed if it is not being used for tax purposes. If an ITIN is not included on a U.S. federal tax return for three consecutive tax years, it will expire on December 31 after the third year of non-use. However, if you need to include an ITIN on a future federal tax return, you must renew it.
The process for renewing an ITIN involves checking the "Renew an existing ITIN" box in the Application Type section and providing the reason for submission. If your legal name has changed since your ITIN was issued, you must include supporting documentation, such as a marriage certificate or court order.
The IRS recommends allowing 7-11 weeks to receive a notification about your ITIN application status, depending on the time of year and your location. If you do not receive a notice within this timeframe, you should contact the IRS.
It is important to note that if you have obtained an SSN, you do not need to renew your ITIN.
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Frequently asked questions
ITIN stands for Individual Taxpayer Identification Number. It is a unique tax-processing number issued by the IRS (Internal Revenue Service) for those who pay taxes but are not eligible for an SSN (Social Security Number).
Aliens or non-resident individuals who are ineligible to obtain an SSN can apply for an ITIN. International students are eligible to apply for an SSN as soon as they have a job. If they are not working but have non-wage income to report, they will need to apply for an ITIN.
Common examples of taxable non-wage income for international students include taxable scholarships, grants, fellowships, dividend payments, lottery winnings, and other investment income.
International students can apply for an ITIN by mailing their W-7, tax return, proof of identity, and foreign status documents to the IRS. Alternatively, they can apply in person using the services of an IRS-authorized Certifying Acceptance Agent or make an appointment at a designated IRS Taxpayer Assistance Center.
The processing time for an ITIN application typically ranges from six to eight weeks, and in some cases, it may take up to seven or eight weeks for the IRS to assign a number. It is recommended to apply as early as possible, as the process can sometimes take up to 2-3 months.
