Janice Lozano
International students in the United States who are not eligible for a Social Security Number (SSN) can apply for an Individual Taxpayer Identification Number (ITIN) to report their income to the Internal Revenue Service (IRS). An ITIN is a tax processing number issued by the IRS to individuals who need to file a tax return but are ineligible to obtain an SSN. International students with non-wage income, such as scholarships, grants, or fellowships, may require an ITIN for tax purposes. The application process for an ITIN typically involves submitting Form W-7 to the IRS, and the number is solely for tax purposes and does not authorize employment.
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What You'll Learn
International students with taxable non-wage income
Common examples of taxable non-wage income for international students include scholarships, grants, or fellowships received from U.S. sources. If the 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.
To apply for an ITIN, international students must submit Form W-7, "Application for IRS Individual Taxpayer Identification Number," with a U.S. tax return. It takes the IRS approximately 7-11 weeks to issue an ITIN. Students can check the status of their ITIN application by calling the IRS toll-free at 1-800-829-1040.
In addition to filing taxes, an ITIN can be used to access U.S. financial products such as bank accounts and credit cards. With many U.S. banks, it is possible to apply for a bank account and credit card using an ITIN in place of an SSN.
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International students with non-service fellowships
International students can apply for an ITIN at any time of the year when 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. The IRS will then take approximately 7-11 weeks to issue the ITIN. To apply for an ITIN, international students must submit Form W-7, "Application for IRS Individual Taxpayer Identification Number," with a U.S. tax return.
There are several external fellowships available for international students. These include the Fulbright Program, which brings citizens of other countries to the United States for Master's or Ph.D. study, and the Whitaker International Program, which supports grant projects in an academic setting and encourages grantees to engage in policy work. Additionally, the Woods Hole Oceanographic Institution offers a Geophysical Fluid Dynamics (GFD) Fellowship for graduate students and researchers from various fields who share an interest in the nonlinear dynamics of rotating, stratified fluids.
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International students with F-1 visas
F-1 students can apply for an ITIN at any time of the year when 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. The IRS will then take approximately 7-11 weeks to issue the ITIN.
International students on an F-1 visa are only eligible to work on-campus and must obtain work authorization before applying for an SSN. An ITIN does not grant any work authorization and is only useful for students who need to report taxable non-wage income, such as scholarships, grants, or fellowships. If an F-1 student is employed or intends to start working soon, they should apply for an SSN instead of an ITIN.
To apply for an ITIN, F-1 students must submit Form W-7, "Application for IRS Individual Taxpayer Identification Number," with a U.S. tax return. They can use GLACIER Tax Prep (GTP), a web-based tax preparation software, to determine if they need an ITIN and prepare the application form. It is recommended to avoid sending original documents to the IRS and instead submit certified copies or visit an IRS Taxpayer Assistance Center for document review.
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International students with dependents
To be eligible for an ITIN, international students must be in F-1, J-1, M-1, or Q-1 nonimmigrant status and must have a valid tax reason for needing an ITIN, as explained in the Form W-7 instructions. This typically applies to students who have taxable non-wage income, such as taxable scholarships, grants, or fellowships, that they need to report on their taxes. It's important to note that if the scholarship, grant, or fellowship is applied directly against tuition or received from a foreign entity, an ITIN is not required to report taxes on that income.
Once an international student with dependents receives their ITIN, they should notify their school's human resources department to update their records. Having an ITIN allows individuals to file tax returns, claim tax treaty benefits, and access certain U.S. financial products, such as applying for bank accounts and credit cards, without the need for an SSN.
It's important to note that if an international student with dependents later becomes eligible for an SSN due to employment, they must apply for an SSN and notify the IRS of the change.
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International students who are not working
International students in the United States are required to file tax forms each year with the Internal Revenue Service (IRS), the U.S. agency that collects federal taxes. If an international student has a job, including on-campus jobs, they are eligible to apply for an SSN. However, if they are not working yet but still 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 scholarships, grants, fellowships, lottery winnings, dividend payments, and prizes or awards.
To apply for an ITIN, international students can coordinate with their university's international student office to collect, verify, and submit their application. The application process typically involves completing Form W-7 or Form W-7 (SP) (in Spanish) and providing supporting documents such as a passport, visa, and other relevant paperwork. It is recommended to apply for an ITIN as early as possible, as the IRS usually takes up to 2-3 months to process applications. International students can check the status of their ITIN application by calling the IRS toll-free at 1-800-829-1040.
In addition to tax filings, having an ITIN can provide other benefits for international students. For example, it can facilitate the process of applying for U.S. financial products like bank accounts and credit cards. Nova Credit, for instance, allows international students to use their foreign credit history from supported countries when applying for their first U.S. credit card, helping them build their U.S. credit history over time.
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Frequently asked questions
An Individual Taxpayer Identification Number (ITIN) is a 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).
International students, scholars, faculty, or staff who have received "non-service" scholarships or fellowships and are not eligible for an SSN may need an ITIN. An ITIN is also required if you have US-source income but are ineligible for an SSN.
To apply for an ITIN, international students can coordinate with their international student office to collect, verify, and submit their application. F and M students must submit Form W-7, "Application for IRS Individual Taxpayer Identification Number," with a US tax return.
You can apply for an ITIN at any time of the year when you have a tax filing requirement. However, if you apply during peak tax processing times (March or April), the process may take longer.
In addition to filing taxes, an ITIN may allow international students to access US financial products such as bank accounts and credit cards.
