Lana Oconnell
International students who are not eligible for a Social Security Number (SSN) may need to apply for an Individual Taxpayer Identification Number (ITIN) to pay taxes on non-wage income. An ITIN is a unique tax-processing number issued by the Internal Revenue Service (IRS) for nonresidents who need to file a tax return due to taxable income but are not eligible for an SSN. The IRS will not issue an ITIN unless it is required for a tax return form. International students can apply for an ITIN at any time of the year where there is a tax filing requirement.
| Characteristics | Values |
|---|---|
| Who needs an ITIN? | International students, scholars, faculty, or staff who are not eligible for a Social Security Number (SSN) and have taxable non-wage income to report. |
| Who does not need an ITIN? | International students who do not have any taxable non-wage income to report. |
| What is considered taxable non-wage income? | Taxable scholarships, grants, or fellowships received from U.S. sources. |
| When to apply for an ITIN? | At any time of the year when there is a tax filing requirement. |
| How to apply for an ITIN? | By coordinating with the international student office to collect, verify, and submit the application. |
| How long does it take to receive an ITIN? | Approximately 7-11 weeks. |
| What if I already have an SSN or become eligible for one after receiving an ITIN? | This will not cause any problems. |
| What is the purpose of an ITIN? | To report taxable non-wage income to the IRS and to access certain U.S. financial products, such as bank accounts and credit cards. |
| Do international students need to file tax returns? | Yes, international students may need to file federal and/or state tax returns depending on their income and the state they are in. |
| What forms do international students need to file? | Form 8843 and possibly Form 1040NR for federal taxes, and Form W-2 for state taxes. |
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What You'll Learn
International students and tax IDs
International students in the United States may need to obtain a Taxpayer Identification Number (TIN) for tax purposes. There are two types of TINs: a Social Security Number (SSN) and an Individual Taxpayer Identification Number (ITIN).
Social Security Number (SSN)
A Social Security Number is issued to nonresidents who are employed. International students are eligible to apply for an SSN as soon as they have a job, including on-campus jobs. J-1 students and scholars are also eligible for SSNs and should apply for this instead of an ITIN.
Individual Taxpayer Identification Number (ITIN)
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 an SSN. International students may need an ITIN if they have taxable non-wage income, such as scholarships, grants, or fellowships, to report on their taxes. It is important to note that if you have a Social Security Number or are eligible for one, you do not need an ITIN.
Obtaining an ITIN
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. The IRS will take approximately 7-11 weeks to issue the ITIN.
Filing Taxes as an International Student
International students in the United States will need to file tax forms each year with the IRS. The amount of tax owed will depend on personal circumstances, and some states may have additional tax requirements. F-1 visa holders who are nonresidents for tax purposes should file their returns as 'Married Filing Separate'.
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Tax IDs for non-working students
Generally, international students who are not eligible for a Social Security Number (SSN) may apply for an Individual Taxpayer Identification Number (ITIN) for use on tax-related documents. An ITIN is a tax processing number used by the US government's tax division: the Internal Revenue Service (IRS).
An ITIN is required for international students who are receiving non-employment-based income (such as scholarships, dividends, or royalties) and do not have an SSN. For instance, students at Harvard University who are on non-service fellowships or scholarships (no work required) and do not have an SSN will need an ITIN. Similarly, students at NYU who are receiving US-sourced scholarships, fellowships, or grants that are not from NYU will need an ITIN.
However, J-1 students and scholars are eligible for SSNs and should apply for one instead of an ITIN. Additionally, F and J students and scholars who are non-residents for US tax purposes can use GLACIER Tax Prep (GTP), web-based tax preparation software, to determine if an ITIN is needed and prepare the application form.
In other countries, such as Australia, Canada, and Thailand, students are required to enter their Tax IDs at checkout to ensure proper tax calculation. For example, in Australia, students enter their ABN ID, while in Canada, they enter their GST/HST ID.
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Tax IDs for students with non-wage income
Generally, international students, scholars, faculty, or staff may need an Individual Taxpayer Identification Number (ITIN) for themselves or their spouses and children. Some special procedures apply to students who have received "non-service" scholarships or fellowships (no work required) and are not eligible for a Social Security Number (SSN).
F and J students and scholars who are non-residents for US tax purposes can use GLACIER Tax Prep (GTP), web-based tax preparation software, to determine if an ITIN is needed. If an ITIN is required, GTP will prepare the ITIN application form. You should then follow the directions in Applying for an ITIN: US Tax Non-Residents. You do not need an ITIN if you have an SSN or are eligible for an SSN or if you are only required to file IRS Form 8843.
If you are a J-1 student or scholar, do not apply for an ITIN for yourself. You should apply for an SSN. If you need ITINs for dependents who are not eligible for SSNs in order to include them in your US tax return, you will need to submit Form W-7 for your dependents to the IRS. When you file Form W-7, you must submit your dependents' original documents (such as a passport), or submit copies of original documents that have been certified by the issuing agency, or visit an IRS Taxpayer Assistance Center to have documents reviewed.
If you have US-source income, but are not eligible for an SSN, you will need an ITIN to fill out Internal Revenue Service (IRS) forms and U-M Payroll forms. The most common example is a student who receives a non-service fellowship that includes money for living expenses. If you apply for an ITIN now and later become eligible for an SSN, this will not cause any problems.
An ITIN is required for international students who do not have an SSN but are receiving grants, fellowships, and scholarships. Please note that you do not need an ITIN if the amount of your fellowship and grant income is less than the cost of tuition as listed on your I-20 form.
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Tax IDs for students with taxable scholarships
Generally, aliens or non-residents may apply for either a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN) for use on tax-related documents. However, the eligibility criteria for both these identification numbers differ for international students.
F and J students and scholars who are non-residents for US tax purposes can use GLACIER Tax Prep (GTP), which is web-based tax preparation software. GTP will determine if an ITIN is needed and prepare the ITIN application form if required. You should then follow the directions in Applying for an ITIN: U.S. Tax Non-Residents. You do not need an ITIN if you have an SSN or are eligible for an SSN, or if you are only required to file IRS Form 8843. If you are a J-1 student or scholar, do not apply for an ITIN for yourself; instead, apply for an SSN.
If you have US-source income but are not eligible for an SSN, you will need an ITIN to fill out Internal Revenue Service (IRS) forms and U-M Payroll forms. The most common example is a student who receives a non-service fellowship that includes money for living expenses. ("Non-service fellowship" means that no work is required). An ITIN is also required for international students who do not have an SSN but are receiving grants, fellowships, and scholarships from Harvard. However, you do not need an ITIN if the amount of your fellowship and grant income is less than the cost of tuition as listed on your I-20 form.
Scholarships that pay for qualified educational expenses at qualified educational institutions generally don't count as taxable income. Scholarships are tax-free only if the student is a degree-seeking candidate, attends a qualified educational institution, and the funds are used for qualified education expenses. Scholarship funds received in excess of your qualified educational expenses may be taxable and might need to be reported as taxable income. Whether scholarships are taxable depends on how much you receive and how you spend the funds. In fact, some scholarships can be at least partially taxable. The IRS has specific conditions for a scholarship not to be taxed.
The IRS has an online assistant you can use to decide how much of your scholarships (if any) are taxable. There is also a tax credit that may be available to students (for independent students) or their parents (for dependent students) if they received a Form 1098-T from their college. The credit is called the American Opportunity Tax Credit (AOTC).
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Tax IDs for students with visas
International students in the United States may need a Tax Identification Number (TIN) for tax purposes. There are two types of TINs: a Social Security Number (SSN) and an Individual Taxpayer Identification Number (ITIN).
Social Security Number (SSN)
A Social Security Number is issued by the Internal Revenue Service (IRS) to nonresidents who are employed. F and J students and scholars who are nonresidents for U.S. tax purposes are eligible for SSNs. J-1 students and scholars should apply for an SSN and not an ITIN.
Individual Taxpayer Identification Number (ITIN)
An ITIN is a unique tax-processing number issued by the IRS to those who pay taxes but are not eligible for an SSN. International students who are not working but still have non-wage income to report on their taxes will need to apply for an ITIN. This includes students who receive grants, fellowships, or scholarships. However, if the amount of fellowship and grant income is less than the cost of tuition, an ITIN is not required.
To apply for an ITIN, international students can coordinate with their international student office to collect, verify, and submit their application. The IRS will take approximately 7-11 weeks to issue an ITIN. It is recommended that you do not send original documents, such as your passport, with your ITIN application. Instead, you can submit copies of original documents that have been certified by the issuing agency.
F-1 Visa Tax Information
F-1 visa holders who are nonresidents for tax purposes should file their tax returns with the status 'Married Filing Separate'. International students on an F-1 visa are taxed only on US-source income. They may also be required to file a state tax return, depending on the state.
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Frequently asked questions
International students who do not have a Social Security Number (SSN) but receive scholarships, grants, or fellowships will need an Individual Taxpayer Identification Number (ITIN) to pay taxes on non-wage income.
An ITIN is a unique tax-processing number issued by the IRS for those who pay taxes but are not eligible for an SSN.
You can apply for an ITIN at any time of the year where you have 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.
If you have an SSN, you do not need an ITIN.
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