Lori Meadows
International students who are not eligible for a Social Security Number (SSN) and need to file a tax return can apply for an 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 who receive taxable scholarships, grants, or fellowships from a U.S. source are required to have an ITIN. To apply for an ITIN, international students must submit Form W-7, Application for IRS Individual Taxpayer Identification Number, along with their passport, visa stamp, and other relevant documents. The application process can be coordinated with the international student office at their university.
| Characteristics | Values |
|---|---|
| Who issues the Tax ID Number | Internal Revenue Service (IRS) |
| Who needs a Tax ID Number | Nonresidents who need to file a tax return due to taxable income but are not eligible for a Social Security Number (SSN) |
| Who does not need a Tax ID Number | J-1 students and scholars, as they are eligible for SSNs |
| How to apply for a Tax ID Number | Submit Form W-7, "Application for IRS Individual Taxpayer Identification Number", with a U.S. tax return |
| What documents are required for the application | Passport, visa stamp, copy of the visa, scholarship or fellowship letter, I-94, I-20 or DS-2019 form |
| How long does it take to process the application | Typically 5-6 weeks, longer during peak tax season (March-April) |
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What You'll Learn
Eligibility for an Individual Taxpayer Identification Number (ITIN)
International students, scholars, faculty, or staff may need 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 only.
You need an ITIN if:
- You have a federal tax purpose and are not eligible for an SSN.
- You are legally required to file a U.S. federal income tax return.
- You want to claim a refund or allowable tax benefit or report income by filing a tax return.
- You can be claimed as a spouse or dependent for an allowable tax benefit.
- You must provide a tax identification number for another federal tax purpose.
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.
- You are only required to file IRS Form 8843.
- You are applying for an extension of time to file your tax return.
- You are making estimated tax payments.
If you are a J-1 student or scholar, you are eligible for an SSN and should not apply for an ITIN. The IRS will not issue an ITIN unless an ITIN is required for a tax return form.
To apply for an ITIN, you can use Form W-7 or Form W-7 (SP) (in Spanish). You can apply by mail or in person.
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Applying for an ITIN
International students who need to file a tax return because of taxable income but are not eligible for a Social Security Number (SSN) can apply for an Individual Taxpayer Identification Number (ITIN). This includes students who receive taxable scholarships, grants, or fellowships. However, if a scholarship, grant, or fellowship is applied directly against tuition or is received from a foreign entity, an ITIN is not required to report taxes on it.
To apply for an ITIN, students must submit Form W-7, "Application for IRS Individual Taxpayer Identification Number," with a U.S. tax return. Students can apply for an ITIN at any time of the year when they have a tax filing requirement. The application process typically takes around 7-11 weeks, but it is recommended to apply as early as possible to allow for processing time. Students can check the status of their ITIN application by calling the IRS toll-free at 1-800-829-1040.
In addition to Form W-7, students may need to provide other documentation, such as a passport, visa, and other supporting letters or notifications. Students should review the Form W-7 instructions and consult with their university's international student office to ensure they have all the required documents before submitting their application.
It is important to note that international students who are employed or intend to start working soon should apply for an SSN instead of an ITIN. An ITIN is specifically for those who need to report taxable income but are not eligible for an SSN.
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Documents required for ITIN application
International students who are not eligible to apply for a U.S. social security number (SSN) or who do not meet the Social Security Administration's evidence requirements for an SSN may apply for an Individual Taxpayer Identification Number (ITIN) from the Internal Revenue Service (IRS). This is the U.S. tax collection agency.
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 for an ITIN through the mail when you receive your tax statement (1042-S) from your educational institution and file your 1040NR tax return. Instructions about applying for an ITIN through the mail are available on Form W-7.
- Form W-7, "Application for IRS Individual Taxpayer Identification Number"
- Tax statement (1042-S)
- 1040NR tax return
- Original passport or a certified copy of your passport from the issuing agency
- One document must show your photo, such as a Visa issued by the U.S. Department of State or a U.S. driver's license
- Students on an F-1 visa are required to provide their I-20 form
- Students receiving a scholarship or fellowship are required to provide a letter about their admission to the university from a designated school official (DSO), typed on official university letterhead
- Students receiving a scholarship or fellowship are required to provide a letter about their award from a DSO, typed on official university letterhead
- Students receiving a scholarship or fellowship who will not be working while studying in the U.S. are required to provide a certified letter from the international student center
You can get most supporting documents authenticated and returned at the end of your appointment. It can take up to 60 days to get them back if you apply by mail.
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ITIN application timeline
International students who are not eligible to apply for a U.S. social security number can apply for an Individual Taxpayer Identification Number (ITIN) from the Internal Revenue Service (IRS). The ITIN is for non-residents who need to file a tax return because of taxable income but are not eligible for an SSN.
- Before applying, find an agent near you. Contact them for an appointment and bring your supporting documents. Allow several weeks to get an appointment at a Taxpayer Assistance Center.
- Apply for an ITIN by mail or in person. To apply, fill out Form W-7, "Application for IRS Individual Taxpayer Identification Number," and submit it to the IRS. You can also apply at select VITA sites in the U.S. for free.
- The ITIN application processing time can vary. It can take 7 weeks to receive a notification about your ITIN application status. However, during the tax season (January 15 to April 30) or if you applied from overseas, it can take up to 9-11 weeks. In some cases, it may take even longer due to delays.
- If you don't receive a notice within the expected timeframe, contact the IRS. If your application is rejected, you must resubmit it, and your supporting documents will be returned to you within 60 days.
- Once your ITIN application is approved, the IRS will write your assigned ITIN on your tax return and forward it for processing.
- If you need to renew your ITIN, fill out the relevant sections of Form W-7 for a renewal. Allow 7 weeks for notification about the renewal status, and up to 9-11 weeks during the tax season or if applying from overseas.
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Benefits of an ITIN beyond tax filings
An Individual Taxpayer Identification Number (ITIN) is a unique tax-processing number issued by the IRS to those who pay taxes but are ineligible for an SSN. International students with non-wage income sources such as taxable scholarships, grants, or fellowships from the US may benefit from having an ITIN. While the primary purpose of an ITIN is to facilitate tax filings, it offers several other advantages for international students in the US.
Access to US Financial Products
An ITIN can be used to apply for US financial products, including bank accounts and credit cards. Many US banks accept ITINs in place of SSNs when applying for these products. This enables international students to establish their financial independence and build a US credit history, which can be beneficial for future financial endeavours.
Claiming Tax Treaty Benefits
International students can benefit from tax treaties between their home country and the US. These treaties may allow them to be taxed at reduced rates or exempt from certain US income taxes. An ITIN is necessary to claim these tax treaty benefits, ensuring that international students are taxed appropriately according to the agreements between the countries.
Compliance with Tax Filing Requirements
For international students with taxable income in the US, an ITIN ensures compliance with tax filing requirements. Without an SSN, an ITIN serves as a vital identifier for tax purposes. It allows students to accurately report their income, claim applicable deductions, and avoid penalties associated with non-compliance.
Streamlined Administrative Processes
Having an ITIN can simplify various administrative processes for international students. For instance, when updating records with their educational institution's human resources department, providing an ITIN ensures the accuracy of year-end tax documents and facilitates smooth tax filing processes.
In summary, while obtaining an ITIN is primarily associated with tax filing obligations, it offers international students in the US a range of additional benefits. These advantages include enhanced access to the US financial system, compliance with tax requirements, and streamlined administrative processes. By leveraging the benefits of an ITIN, international students can better navigate their financial and administrative responsibilities during their time in the country.
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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) to individuals who need to report income but are ineligible to obtain a Social Security Number (SSN).
International students who are not working but have non-wage income to report on their taxes need an ITIN. This includes students with taxable scholarships, grants, or fellowships. Students with U.S. source income but who are not eligible for an SSN will also need an ITIN.
To apply for an ITIN, submit Form W-7, "Application for IRS Individual Taxpayer Identification Number", with a U.S. tax return. You will also need documents that prove your identity and foreign status, such as your passport and visa stamp.
