Lori Meadows
International students are generally eligible to apply for a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN) for use on tax-related documents. An ITIN is a unique tax-processing number issued by the Internal Revenue Service (IRS) to individuals who need to report income but are ineligible for an SSN. International students who are not working but have non-wage income to report, such as taxable scholarships, grants, or fellowships, will need to apply for an ITIN. The application process involves submitting Form W-7, Application for IRS Individual Taxpayer Identification Number, along with the required supporting documents, and it typically takes around 5 to 11 weeks for the IRS to process and issue an ITIN.
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What You'll Learn
International students and eligibility for SSN
International students can apply for a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN) for use on tax-related documents. Eligibility for an SSN is based on a person's eligibility to work in the United States. Those eligible include US citizens, permanent residents, and qualified foreign nationals—including, in certain circumstances, students in F-1 or J-1 status.
To apply for an SSN, you must first obtain valid employment authorization. Authorization can be based on one of the following:
- On-campus employment: obtain a letter from your department confirming that you have been offered an on-campus job.
- Curricular Practical Training: obtain an updated Form I-20 from TC, showing that you have been authorized to engage in F-1 Curricular Practical Training (CPT) (employment based on an academic internship/fieldwork/practicum).
- Optional Practical Training or other off-campus employment: obtain a valid, unexpired Employment Authorization Document (EAD).
F-1 students must also provide evidence of lawful F-1 employment, such as an on-campus job or authorization for CPT or Optional Practical Training (OPT). Once you have obtained employment authorization, you can apply for an SSN at a local Social Security Administration office. You will need to bring the following documents:
- ISS On-Campus Employment Authorization/SSN Eligibility Letter.
- I-94 card, or a copy of your J-1 admission stamp in your passport and a printout of your electronic I-94 information.
- Employment offer letter from your department/hiring office.
- Valid immigration documents, including a valid passport, valid I-20 or DS-2019, and an I-94 card or electronic I-94 notated "F-1 D/S" or "J-1 D/S."
An ITIN, on the other hand, is a tax-processing number issued by the IRS for those who pay taxes but are ineligible 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. Common examples of taxable non-wage income for international students include scholarships, grants, or fellowships received from US sources. To apply for an ITIN, international students must submit Form W-7, "Application for IRS Individual Taxpayer Identification Number," with a US tax return.
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When to apply for an ITIN
International students with taxable income who are not eligible for a Social Security Number (SSN) need to apply for an Individual Taxpayer Identification Number (ITIN) in order to file U.S. tax returns. This includes students who receive taxable scholarships, grants, or fellowships. However, 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.
International students can apply for an ITIN at any time of the year when they have a tax filing requirement. However, it is recommended to apply as early as possible, as the Internal Revenue Service (IRS) usually takes up to 2-3 months to process ITIN applications. Students should aim to receive their ITIN early enough to file taxes before the deadline in April.
To apply for an ITIN, international students must submit the following documents to the IRS:
- W-7 Form
- Tax return
- Proof of identity
- Foreign status documents
Students can apply for an ITIN by mail or in person using the services of an IRS-authorized Certifying Acceptance Agent. The mailing address provided by the IRS for ITIN applications is:
Internal Revenue Service
Austin Service Center ITIN Operation
P.O. Box 149342
Austin, TX 78714-9342
It is important to note that individuals who receive an ITIN and later become eligible for an SSN due to employment must apply for an SSN. The IRS must be notified in writing when individuals obtain their SSN.
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Documents required for ITIN application
International students in the United States need to file tax forms each year with the Internal Revenue Service (IRS), the agency that collects federal taxes. If you do not have a Social Security Number (SSN) because you are not working, you will need to apply for an Individual Taxpayer Identification Number (ITIN) to report any non-wage income when filing your taxes.
- A completed Form W-7 (Application for ITIN)
- Original passport or a certified copy of your passport from the issuing agency
- Tax statement (1042-S) from your university
- 1040NR tax return
- Proof of U.S. residency, such as a U.S. address on a school record
- One document with your photo, such as a U.S. driver's license or a U.S. state identification card
- If you applied for an SSN and were denied, you must submit the denial letter from the SSA
- If you are a student on an F-1 visa, you will need to provide your I-20 form
- If you are receiving a scholarship or fellowship, you will need a letter about your admission and award from a designated school official (DSO), typed on official university letterhead
Please note that you may need additional documents depending on your specific situation. For example, if you are a dependent of U.S. military personnel, you will need to provide proof of your relationship and a copy of the servicemember's U.S. military ID. It is recommended that you review the ITIN application instructions provided by the IRS and consult with a tax professional or your university's international student office for guidance specific to your circumstances.
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How to apply for an ITIN
As an international student, you will need an Individual Taxpayer Identification Number (ITIN) to pay taxes on non-wage income if you do not have a Social Security Number (SSN).
To apply for an ITIN, you must submit a Form W-7, "Application for IRS Individual Taxpayer Identification Number," with a U.S. tax return. You can apply for an ITIN at any time of the year where you have a tax filing requirement.
International students are eligible to apply for an SSN as soon as they have a job, including on-campus jobs and off-campus work. If you are not working yet 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 scholarships, grants, or fellowships received from U.S. sources. If your scholarship, grant, or fellowship is applied directly against tuition or received from a foreign entity, there is no need to apply for an ITIN to report taxes on it.
To apply for an ITIN, you will need to submit the following documents to the IRS:
- Form W-7
- A certification letter with your full name and SEVIS number from your university, in place of submitting a tax return
- A copy of your visa stamp with the date of your first entrance to the U.S. in your current status
- A letter of non-approved work authorization from a designated school official
- Documents that prove your identity and foreign status, such as your foreign passport and visa stamp.
You can coordinate with your university's international student office to collect, verify, and submit your application once you have arrived on campus. Alternatively, you can apply for an ITIN in person using the services of an IRS-authorized Certifying Acceptance Agent at a designated IRS Taxpayer Assistance Center. After submitting your application, it will take the IRS approximately 7-11 weeks to issue your ITIN.
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Benefits of an ITIN beyond tax filings
As an international student in the United States, you will need to file tax forms each year with the Internal Revenue Service (IRS). If you are not eligible for a Social Security Number (SSN), you will need to apply for an Individual Taxpayer Identification Number (ITIN) to report any non-wage income when filing these taxes.
Access to US financial products
With an ITIN, you may be able to access US financial products and services, such as opening a bank account or applying for a credit card. Many US banks accept ITINs in place of an SSN for these purposes. This can be especially useful for international students who may not be eligible for an SSN due to their employment status.
Building credit history
By obtaining a US credit card with your ITIN, you can start building your US credit history. Responsible management of your credit card over time will help establish your creditworthiness and can be beneficial for future financial endeavours in the US.
Claiming tax treaty benefits
If applicable, an ITIN can be used to claim tax treaty benefits. Certain countries have income tax treaties with the US, which may allow residents of those countries to be taxed at a reduced rate or be exempt from certain US taxes.
Compliance with tax requirements
For international students with taxable scholarships, grants, or fellowships, having an ITIN ensures compliance with tax requirements. It allows you to accurately report and pay taxes on this income, avoiding any legal issues or complications with the IRS.
In summary, while the primary purpose of an ITIN is for tax filings, it can also provide international students with access to financial services, help build credit history, and ensure compliance with tax obligations related to non-wage income.
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Frequently asked questions
International students and scholars who are not eligible for an SSN and need to report income will need an ITIN. If you are not working and do not have any non-wage income to report, you will not need an ITIN.
To apply for an ITIN, you must submit Form W-7, "Application for IRS Individual Taxpayer Identification Number", with a U.S. tax return. You can apply at any time of the year where you have a tax filing requirement.
You will need documents that prove your identity and foreign status, such as your passport and visa stamp.
