Lori Meadows
International students in the United States who do not have a Social Security Number (SSN) and receive non-wage income such as scholarships, grants, fellowships, or prizes are required to apply for an Individual Taxpayer Identification Number (ITIN) to file their tax returns. The ITIN is issued by the Internal Revenue Service (IRS) and is used to report non-wage income to the IRS. International students can apply for an ITIN at any time during the year when they have a tax filing requirement. The application process involves submitting Form W-7 and relevant documents to prove identity and foreign status to the IRS.
| Characteristics | Values |
|---|---|
| Who needs an ITIN? | International students who do not have a Social Security Number (SSN) but have taxable income or non-wage income. |
| What is taxable income? | Room and board scholarships, lottery winnings, dividend payments, etc. |
| What is non-wage income? | Taxable scholarships, grants, fellowships, prizes, interest income, dividend payments, capital gains on U.S. stocks, real estate capital gains, and gambling winnings. |
| Who doesn't need an ITIN? | International students who are not employed and do not have any non-wage income to report. |
| How to apply? | Use Form W7, along with original documents to establish foreign status and identity, such as a valid passport or visa. |
| Where to send the application? | Internal Revenue Service (IRS), ITIN Operations, P.O. Box 149342, Austin, TX 78714-9342. |
| How long does it take? | It takes the IRS approximately 7-11 weeks to issue an ITIN. |
| When to apply? | International students can apply at any time of the year where there is a tax filing requirement. |
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What You'll Learn
International students on F1, J1, or M1 visas may need an ITIN
To apply for an ITIN, international students must complete Form W7 and assemble original documents to establish their identity and foreign status. This can include a valid passport or a passport containing a valid US visa. Students must then mail their application and supporting documents to the IRS. The IRS will process the application in around 7-11 weeks. Students can check the status of their application by calling the IRS.
It is important to note that if an international student meets the criteria for an SSN, they should not apply for an ITIN. The SSN is more versatile, as it can be used for both federal, state, and local tax purposes, whereas the ITIN is for federal tax purposes only. Additionally, an SSN does not expire, while an ITIN does and must be renewed.
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ITIN vs SSN for international students
International students in the United States may need to apply for a Taxpayer Identification Number (ITIN) or a Social Security Number (SSN). These numbers are used for tax purposes and income tracking. Whether you need an ITIN or an SSN depends on your employment status and income type.
ITIN
An ITIN is issued by the Internal Revenue Service (IRS) to international students and scholars who are not eligible for an SSN. An ITIN is used to identify individuals who need to file a tax return but are not eligible for an SSN because they are not employed. International students can use an ITIN to pay taxes on non-wage income, such as taxable scholarships, grants, fellowships, interest income, dividend payments, and capital gains. You can apply for an ITIN at any time of the year when you have a tax-filing requirement. The processing time for an ITIN application is approximately 7-11 weeks.
SSN
An SSN is used by employers and employees to report individual earnings for tax purposes. International students in F-1 or J-1 visa status who are being paid by their university, such as through taxable scholarships or fellowships, are advised to apply for an SSN as soon as possible. Students can also apply for an SSN if they have an on-campus job or plan to apply for Curricular Practical Training (CPT) or OPT soon. The processing time for an SSN application is typically 3-4 weeks, and the number is valid for life.
In summary, international students who are not employed but have non-wage income should apply for an ITIN, while those who are employed or have an on-campus job offer should apply for an SSN. Both numbers are used for tax purposes, but an SSN can also be used for unofficial purposes such as opening bank accounts or phone accounts.
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When to apply for an ITIN
International students and scholars who are not eligible for a Social Security Number (SSN) will need to apply for an International Taxpayer Identification Number (ITIN). An ITIN is a 9-digit number issued by the Internal Revenue Service (IRS) to individuals filing tax returns who are not US citizens and do not have an SSN.
As an international student, you will need to file tax forms each year with the IRS, the US agency that collects federal taxes. If you are not working, you will need to apply for an ITIN to report any non-wage income when filing these taxes. Common examples of taxable non-wage income for international students include taxable scholarships, grants, fellowships, interest income, dividend payments, capital gains on US stocks, real estate capital gains, and gambling winnings.
You can apply for an ITIN at any time of the year when you have a tax-filing requirement. The ITIN assignment date is generally the date the IRS receives your ITIN application package if no other action was needed to complete your application. It is recommended that you apply for an ITIN as soon as you arrive on campus. The application process can take 7-11 weeks, and you can check the status of your ITIN number application by calling the IRS toll-free at 1-800-829-1040.
To apply for an ITIN, you will need to complete Form W-7, Application for Individual Taxpayer Identification Number, and submit it with your tax return. You can apply by mail or in person at a Taxpayer Assistance Center in the US or abroad with an agent approved by the IRS. Fees may vary. It may take several weeks to get an appointment at a Taxpayer Assistance Center.
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How to apply for an ITIN
International students in the United States who do not have an on-campus job or are not working may still need to pay taxes on non-wage income such as scholarships, grants, fellowships, interest income, dividend payments, and capital gains on US stocks. In such cases, they will need an Individual Taxpayer Identification Number (ITIN) to file their US tax returns.
Step 1: Check if you need an ITIN
First, determine if you have any taxable non-wage income that needs to be reported to the Internal Revenue Service (IRS). Common examples include taxable scholarships, grants, fellowships, interest income, dividend payments, capital gains on US stocks, real estate capital gains, and gambling winnings. If you do not have any non-wage income to report, you will not need an ITIN.
Step 2: Understand the requirements
To apply for an ITIN, you will typically need to be physically present in the US and have arrived on campus. Additionally, check with your university's international student office to understand the specific requirements for a certification letter and see a sample letter from the IRS.
Step 3: Gather the required documents
The documents you will need to submit with your ITIN application include:
- A completed IRS W-7 form: This form provides detailed instructions on the application process.
- Proof of identity: This can include your passport, F-1 or J-1 visa, and I-20 or DS-2019 form.
- Proof of foreign status: This can include your passport and visa.
- Any other supporting documents: For example, if you are claiming tax treaty benefits, you will need to submit a W-8BEN form with your application.
Step 4: Submit your application
Once you have gathered all the required documents, you can submit your application by mailing them to the IRS at the following address:
Internal Revenue Service
ITIN Operations
P.O. Box 149342
Austin, TX 78714-9342
Alternatively, you can coordinate with your university's international student office to collect, verify, and submit your application on your behalf.
Step 5: Check the status of your application
After submitting your application, it will typically take the IRS around 7-11 weeks to process your ITIN application. You can check the status of your ITIN application by calling the IRS toll-free at 1-800-829-1040.
Please note that the entire process may take up to 2-3 months, so it is recommended to apply as early as possible, especially if you need to file your tax returns by the deadline in April.
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Using an ITIN for US financial products
International students who are not eligible for an SSN (Social Security Number) can apply for an ITIN (Individual Taxpayer Identification Number). An ITIN is a 9-digit number issued by the IRS (Internal Revenue Service) for federal tax purposes only. International students can use an ITIN to report any non-wage income, such as taxable scholarships, grants, fellowships, interest income, dividend payments, and capital gains on US stocks.
To apply for an ITIN, international students can submit an application request via OISS Connect or fill out Form W-7, Application for IRS Individual Taxpayer Identification Number (ITIN), and submit it with their tax return. It is recommended to coordinate with the international student office to collect, verify, and submit the application, which typically takes 7-11 weeks to process.
While an ITIN is primarily for tax purposes, it can also be used to access certain US financial products. For example, an ITIN can be used to open a bank account or apply for a credit card. This is because some financial institutions accept an ITIN as a form of identification, similar to an SSN. However, it's important to note that an ITIN does not authorize an individual to work legally in the US and is solely for federal tax purposes.
When applying for a bank account or credit card with an ITIN, it is essential to check with the specific financial institution to understand their requirements and processes. Some banks may require additional documentation or have specific eligibility criteria for individuals using an ITIN instead of an SSN. It is also worth noting that an ITIN cannot be used for all financial products; for example, an ITIN cannot replace an SSN for obtaining a credit score or building credit history.
In summary, while an ITIN is primarily used for federal tax purposes by individuals who are not eligible for an SSN, including international students, it can also facilitate access to certain US financial products, such as bank accounts and credit cards. International students can apply for an ITIN through their university's international student office or directly with the IRS, allowing them to meet their tax obligations and access essential financial services during their time in the United States.
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Frequently asked questions
ITIN stands for Individual Taxpayer Identification Number. It is issued by the Internal Revenue Service (IRS) and is for international students and scholars who are not eligible for an SSN.
International students who do not have a Social Security Number (SSN) but are receiving grants, fellowships, scholarships, or any other form of non-wage income need to apply for an ITIN in order to file U.S. tax returns or claim tax treaty benefits.
You can apply for an ITIN at any time of the year where there is a tax filing requirement. You can coordinate with your international student office to collect, verify, and submit your application once you have arrived on campus. You will need to fill out Form W7 and assemble original documents to establish your foreign status and identity, such as your valid passport or a passport containing your valid US visa.
