Ibrahim Gardner
As an international student in the United States, you will need to file tax forms each year with the Internal Revenue Service (IRS), the US agency that collects federal taxes. If you are not eligible for 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 these taxes. This includes taxable scholarships, grants, or fellowships received. You can apply for an ITIN at any time of the year where you have a tax filing requirement and it is recommended to apply as soon as possible since the IRS usually takes up to 2-3 months to process applications.
| Characteristics | Values |
|---|---|
| Who needs an ITIN? | International students who need to report non-wage income but do not have an SSN |
| What is an ITIN? | Individual Taxpayer Identification Number |
| Who issues ITINs? | The Internal Revenue Service (IRS) |
| When to apply for an ITIN? | Any time of the year when there is a tax filing requirement |
| How long does it take to get an ITIN? | 7-11 weeks |
| What is the application process? | Students can coordinate with their international student office to collect, verify, and submit their application |
| What documents are required? | Passport, F-1 or J-1 visa, and I-20 or DS-2019 forms |
| Can I check the status of my application? | Yes, by calling the IRS toll-free at 1-800-829-1040 |
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What You'll Learn
When to apply for an ITIN
As an international student in the United States, you will need to file tax forms each year with the Internal Revenue Service (IRS), the US agency that collects federal taxes. If you are employed or intend to start working soon, you should apply for a Social Security Number (SSN) rather than an Individual Taxpayer Identification Number (ITIN).
You should apply for an ITIN if you have taxable non-wage income to report on your taxes, such as taxable scholarships, grants, fellowships, or non-employment stipends. However, if a scholarship, grant, or fellowship is applied directly against tuition or received from a foreign entity, you do not need to apply for an ITIN to report taxes on it.
You can apply for an ITIN at any time of the year when you have a tax filing requirement. It is recommended to apply as soon as possible, as the IRS usually takes up to 2-3 months to process ITIN applications. If you apply for an ITIN at the same time as you file your tax forms, you will be required to submit your original passport, which may cause problems for travel plans during break periods. New students are not eligible to apply for an ITIN until approximately two weeks after the start of their first semester of study.
If you have a tax treaty, you must also submit a W-8BEN with your application. Additionally, if you need an ITIN for dependents who are not eligible for Social Security Numbers, you will need to submit Form W-7 for your dependents to the IRS, along with their original documents or certified copies.
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How to apply for an ITIN
As an international student in the United States, you will need to file tax forms each year with the Internal Revenue Service (IRS), the US agency that collects federal taxes. If you are not eligible for 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 these taxes.
You will need an ITIN if you have taxable non-wage income to report on your taxes, such as scholarships, grants, fellowships, interest income, dividend payments, capital gains on US stocks, real estate capital gains, or gambling winnings. However, if your scholarship, grant, or fellowship is applied directly against tuition or received from a foreign entity, you do not need to apply for an ITIN to report taxes on it.
To apply for an ITIN, you can follow these steps:
- Check with your university's international student office on the requirements for a certification letter and refer to the IRS W-7 Instructions for detailed information on the application process.
- Collect all the required documents, which may include your passport, visa stamp, fellowship or scholarship letter, I-94 printed from the CBP I-94 website, and your I-20 or DS-2019 form.
- Submit your application by mailing it to the IRS at the following address: Internal Revenue Service ITIN Operations, P.O. Box 149342, Austin, TX 78714-9342.
- Allow up to 2-3 months for the IRS to process your application. You can check the status of your ITIN application by calling the IRS toll-free at 1-800-829-1040.
It is recommended to apply for your ITIN as early as possible, as you must receive it early enough to file taxes before the deadline in April. Additionally, if you apply for an ITIN at the same time as you file your tax forms, you will be required to submit your original passport and visa documents, which may cause issues with your travel plans during break periods.
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ITIN vs SSN
As an international student in the United States, you will need to file tax forms each year with the Internal Revenue Service (IRS), the US agency that collects federal taxes.
If you are working, you are eligible to apply for a Social Security Number (SSN). If you are not working but still have non-wage income to report on your taxes, you will need to apply for an Individual Taxpayer Identification Number (ITIN). Common examples of taxable non-wage income for international students include scholarships, grants, fellowships, interest income, dividend payments, capital gains on US stocks, real estate capital gains, and gambling winnings.
An ITIN is a unique tax-processing number issued by the IRS for those who pay taxes but are not eligible for an SSN. Both international students and scholars can apply for an ITIN. You can apply for an ITIN at any time of the year where you have a tax filing requirement. However, the IRS usually takes 7-11 weeks to process ITIN applications, so it is recommended to apply as soon as possible.
You cannot have both an ITIN and an SSN. An ITIN cannot be used in place of an SSN for tax and wage reporting. When you get an SSN, you must notify the IRS so they can combine all your tax records under your SSN.
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Documents required for ITIN
As an international student in the United States, you will need to file tax forms each year with the Internal Revenue Service (IRS), the federal agency that collects taxes. If you are working, you are eligible to apply for a Social Security Number (SSN). If you are not working but still have non-wage income to report on your taxes, you will need to apply for an Individual Taxpayer Identification Number (ITIN).
- A completed W-7 form, which is the application form for an ITIN.
- A tax return.
- Proof of identity and foreign status, such as a foreign passport and visa stamp. The IRS also accepts alternative documents, which are listed on their website.
- If you receive a taxable scholarship, grant, or fellowship from a U.S. source, you must submit a certification letter (with your full name and SEVIS number) from your university in place of submitting a tax return. Check with your university’s international student office on the requirements for a certification letter.
- If you have a tax treaty, you must also submit a W-8BEN with your application.
You can apply for an ITIN at any time of the year where you have a tax filing requirement. As an international student, you can coordinate with your international student office to collect, verify, and submit your application once you have arrived on campus. It takes the IRS approximately 7-11 weeks to issue an ITIN.
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Benefits of an ITIN
An Individual Taxpayer Identification Number (ITIN) is a unique, nine-digit identification number issued by the Internal Revenue Service (IRS) to individuals who do not have and are not eligible for a Social Security Number (SSN). Here are some benefits of having an ITIN as an international student:
Compliance with US Tax Laws
As an international student in the United States, you are required to file tax forms annually with the IRS, the federal agency responsible for collecting taxes. If you have non-wage income, such as taxable scholarships, grants, fellowships, dividend payments, or capital gains, and you do not have an SSN, you will need an ITIN to comply with US tax laws and file your tax returns.
Access to US Financial Products and Services
An ITIN can facilitate your access to various US financial products and services. Many US banks accept an ITIN in place of an SSN when applying for a bank account or credit card, enabling you to manage your finances more effectively while studying in the US.
Refund of Taxes
If you have an ITIN, you may be eligible for a refund of taxes paid on certain types of income, such as scholarships, when you file your US tax returns. By applying for an ITIN early, you can ensure that you receive any tax treaty benefits you may be entitled to, reducing your tax burden.
Convenience in Future Employment
Having an ITIN can streamline your transition to employment in the US. If you later become eligible for an SSN due to employment, you must notify the IRS and apply for an SSN. Having already established your identity and tax compliance through the ITIN process, you will be in a more organized position to navigate the shift to using an SSN for tax purposes.
Ease of Administrative Tasks
An ITIN can simplify various administrative tasks during your time as an international student. For instance, it can be used to update your records with the university's human resources department, ensuring the accuracy of your year-end tax documents and facilitating seamless interactions with the university's administrative systems.
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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 for those who pay taxes but are not eligible for an SSN.
International students who are not working but have non-wage income to report on their taxes need to apply for an ITIN. This includes students who receive taxable scholarships, grants, or fellowships.
You can apply for an ITIN through the Internal Revenue Services (IRS) following their instructions. You can get help with your application from an IRS-approved Acceptance Agent.
You can apply for an ITIN at any time of the year where you have a tax filing requirement. It is recommended to apply as soon as possible, as the IRS usually takes up to 2-3 months to process applications.
You will need to submit your passport, visa stamp, a copy of your fellowship or scholarship letter, your I-94 printed from the CBP I-94 website, and your I-20 or DS-2019 form. If you are applying for an ITIN for your dependents, you must submit their original documents or certified copies.
