International Students: Itin Application Process Simplified

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 income from taxable scholarships, grants, or fellowships received from a US source, as well as passive investing income such as interest income, dividend payments, and capital gains on US stocks. You can apply for an ITIN at any time of the year where you have a tax filing requirement, and the IRS usually takes up to 2-3 months to process ITIN applications.

ITIN vs SSN

As an international student in the United States, you will need a form of national ID to work, file taxes, obtain a driver's license, and open a bank account. There are two types of ID numbers you can apply for: an Individual Taxpayer Identification Number (ITIN) or a Social Security Number (SSN).

ITIN

An ITIN is a unique tax-processing number issued by the IRS for those who pay taxes but are not eligible for an SSN. An ITIN is for federal tax purposes only. International students who are not working but still need to report taxable non-wage income to the IRS will need 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, you will need to complete IRS Form W-7, along with your tax returns and documentation to substantiate your foreign status and identity. You can obtain Form W-7 from the IRS website, where you can also find an instruction guide for completing the form. Once you have all your documents in order, you can mail them to the IRS. The IRS will take approximately 7-11 weeks to issue your ITIN.

SSN

A Social Security Number is a nine-digit number assigned by the Social Security Administration for tax and wage reporting purposes. To be eligible for an SSN, you must be a noncitizen authorized to work in the US. International students can apply for an SSN as soon as they have a job, including on-campus jobs.

To apply for an SSN, you will need to fill out the Application for a Social Security Card (Form SS-5) and file your application at your local SSA office. You will generally need to wait 10 days after arriving in the US to apply and will need two original documents proving your identity, immigration status, work eligibility, and age.

Key Differences

The key differences between an ITIN and an SSN are:

• Application process: To obtain an SSN, you must have obtained an authorized form of employment, whereas you do not need authorized employment to apply for an ITIN.
• Expiration: An SSN does not expire, while an ITIN expires and needs to be renewed.
• Use: An SSN is used for federal, state, and local tax purposes, while an ITIN is for federal tax purposes only.

In conclusion, as an international student, you should apply for an ITIN if you are not working but need to report non-wage income to the IRS. If you are working, you should apply for an SSN.

When to apply

As an international student, you can apply for an Individual Taxpayer Identification Number (ITIN) at any time of the year if you have a tax filing requirement. However, there are some key points to consider regarding the timing of your application.

Firstly, if you are receiving grants, fellowships, or scholarships, you should apply for an ITIN as soon as possible. This is because you will need an ITIN to report any taxable income from these sources to the Internal Revenue Service (IRS). The IRS usually takes up to 2-3 months to process ITIN applications, so applying early will ensure you meet any tax deadlines. Additionally, if you apply for an ITIN before receiving any taxable income, you may be able to claim tax treaty benefits and receive a refund of any taxes paid when you file your US tax returns.

Secondly, it is important to note that you cannot apply for an ITIN until approximately two weeks after the start of your first semester of study. This is a requirement for new students. Therefore, if you are a first-year international student, you should factor this waiting period into your application timeline.

Thirdly, if you are applying for an ITIN to report non-wage income, such as taxable scholarships, grants, or fellowships, you should check with the issuing institution to confirm if your income is taxable. In some cases, income applied directly against tuition or received from a foreign entity may not be taxable, and you may not need to apply for an ITIN.

Finally, if you are eligible for a Social Security Number (SSN) or are in the process of obtaining one, you should not apply for an ITIN. An SSN can be used for both federal and state tax purposes, while an ITIN is only for federal tax purposes. Therefore, if you meet the criteria for an SSN, it is generally more advantageous to obtain an SSN instead of an ITIN.

Application process

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.

• Check your eligibility: Before applying for an ITIN, confirm if you need one. International students typically need an ITIN if they have non-wage income, such as taxable scholarships, grants, or fellowships, or other sources like real estate capital gains or gambling winnings. If you are not working and have no non-wage income to report, you are not eligible for an ITIN. Additionally, if you are eligible for an SSN, you should apply for that instead of an ITIN.
• Visit the IRS website: Go to the IRS website to access the application for the IRS Individual Taxpayer Identification Number, also known as Form W-7. On the website, you will also find an instruction guide to help you complete the form.
• Complete Form W-7: Fill out the Form W-7 accurately, providing all the required information.
• Gather supporting documents: After completing the form, you will need to assemble original documents to establish your foreign status and identity. This can typically be done by providing a valid passport or a passport containing a valid US visa. Ensure that the information in your supporting documents matches the details provided on your W-7 application. Depending on your specific situation, you may also need to submit additional documentation, such as a US federal tax return or a letter/official notification regarding scholarships, fellowships, or grants.
• Submit your application: Once you have all your documents ready, submit them to the IRS. You can coordinate with your university's international student office to collect, verify, and submit your application. Alternatively, you can mail your application and supporting documents to the IRS at the following address: Internal Revenue Service ITIN Operations, P.O. Box 149342, Austin, TX 78714-9342.
• Allow for processing time: The IRS usually takes around 7-11 weeks to process ITIN applications. If you are applying early, it may take up to 2-3 months. Keep this timeline in mind, especially if you want to receive your ITIN before certain deadlines, such as tax filing.
• Check your application status: You can check the status of your ITIN application by calling the IRS toll-free at 1-800-829-1040.

Required documents

As an international student, you will need an Individual Taxpayer Identification Number (ITIN) if you are earning an income but are not eligible for a Social Security Number (SSN). You will need to apply for an ITIN to report any non-wage income when filing your taxes.

• A valid passport or a passport containing a valid US visa.
• A completed W-7 application form, which can be found on the IRS website.
• Original documents to establish your foreign status and identity. These documents should match the information provided on your W-7 application.
• Depending on your reason for applying, you may need to submit your US federal tax return along with your completed W-7 application.
• If you are applying based on receiving a scholarship, grant, or fellowship, you may need a letter or official notification from the college or university awarding the scholarship.
• If you have a tax treaty, you must also submit a W-8BEN with your application.
• If you are an F-1 or J-1 student, you will need to submit your I-20 or DS-2019 form.

It is important to note that the IRS does not recommend sending original documents, such as your passport, with your ITIN application. Instead, you can submit certified copies of these documents.

Checking your application status

After submitting your ITIN application, you can check the status of your application by calling the Internal Revenue Service (IRS) at their toll-free number: 1-800-829-1040. You can also call 1-800-908-9982 and select option 1 for English, then option 2 to check your ITIN application status.

The IRS advises that you should allow 7 weeks to be notified about your ITIN application status. This duration can be longer, ranging from 9 to 11 weeks, if it's tax season (January 15 to April 30) or if you applied from outside the United States. If you do not receive any notice from the IRS within this timeframe, you should contact them.

If you submitted your application by mail and did not receive your original supporting documents within 60 days, you should also contact the IRS. Additionally, if you change your address before receiving your ITIN, you must inform the IRS. If you change your name after obtaining your ITIN, you should notify the IRS to update your records. In such cases, you can send a letter explaining the change, along with supporting documentation, to the IRS at the following address:

> Internal Revenue Service

> Austin Service Center ITIN Operation

> P.O. Box 149342

> Austin, TX 78714-9342

Alternatively, you can mail your letter to:

> Internal Revenue Service ITIN Operation

> Mail Stop 6090-AUSC

> 3651 S

If your ITIN application is rejected or additional information is requested, you can bring the notice along with your application materials to your institution's international student office for assistance.

Frequently asked questions