Janice Lozano
International students in the US may need to apply for an Individual Taxpayer Identification Number (ITIN) if they have US-source income but are ineligible for a Social Security Number (SSN). An ITIN is a tax processing number issued by the Internal Revenue Service (IRS) to individuals who need to report income but are ineligible to obtain an SSN. To apply for an ITIN, students must submit Form W-7, Application for IRS Individual Taxpayer Identification Number, with a US tax return. Students can apply by mail or in person.
| Characteristics | Values |
|---|---|
| Who is eligible for an ITIN? | Nonresident and resident aliens, their spouses, and dependents who cannot get a Social Security Number (SSN) |
| Who is not eligible for an ITIN? | J-1 students and scholars, as they are eligible for SSNs |
| When to apply for an ITIN? | If you have U.S. source income but are not eligible for an SSN |
| How to apply for an ITIN? | Submit Form W-7, "Application for IRS Individual Taxpayer Identification Number," with a U.S. tax return |
| Where to apply for an ITIN? | Mail to the Internal Revenue Service or apply in person at a Taxpayer Assistance Center |
| What to submit with Form W-7? | Passport, visa stamp, fellowship or scholarship letter, I-94, and I-20 or DS-2019 form |
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What You'll Learn
Eligibility for international students
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). You can apply for an ITIN at any time of the year when you have a tax filing requirement.
International students who are not eligible for an SSN (i.e., those who do not have an on-campus job and do not plan to apply for OPT or CPT soon) may submit an ITIN application request. However, if you are a J-1 student or scholar, you should not apply for an ITIN; instead, apply for an SSN.
If you are an F-1 or J-1 student or scholar being paid by the university (e.g., compensation, taxable scholarship, fellowship, prize, or award), you should apply for an SSN as soon as possible.
Some special procedures apply to students who have received "non-service" scholarships or fellowships (no work required) and are not eligible for an 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 you need an ITIN for your dependents who are not eligible for SSNs, 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 (e.g., passport) or submit copies of original documents certified by the issuing agency.
Common examples of taxable non-wage income for international students include:
- Taxable scholarships, grants, or fellowships received.
- Passive investing income such as interest income, dividend payments, and capital gains on US stocks.
- Other non-wage income from US sources, such as real estate capital gains and gambling winnings.
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Applying for an ITIN
An Individual Taxpayer Identification Number (ITIN) is a tax processing number issued by the Internal Revenue Service (IRS) to individuals who need to report income but are ineligible to obtain a Social Security Number (SSN). Non-resident international students who receive taxable income (e.g. from certain scholarships) but are not eligible for an SSN will need an ITIN to file a tax return.
To apply for an ITIN, you will need to submit Form W-7, "Application for IRS Individual Taxpayer Identification Number", with a U.S. tax return. You can apply by mail or in person at a Taxpayer Assistance Center in the U.S. If you apply in person, you will not be required to mail your proof of identity and foreign status documents. However, it may take several weeks to get an appointment at a Taxpayer Assistance Center, and not all centers process ITINs, so be sure to verify this service when scheduling your appointment.
When filing Form W-7, you must submit your original documents (e.g. passport) or copies of original documents that have been certified by the issuing agency. The International Center advises against sending original documents to the IRS. If you cannot obtain certified copies of your documents, you should plan to visit a Taxpayer Assistance Center that can verify your documents in person.
If you are an F or M student who is ineligible for an SSN, you must apply for an ITIN if you receive taxable income. J-1 students are eligible for SSNs and should not apply for ITINs.
If you apply for an ITIN during the same year that you received your fellowship income, you can apply at the Payroll Office by making an appointment with the Payroll Tax Section. You will need your passport and 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.
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Required documents
To apply for an Individual Taxpayer Identification Number (ITIN), you will need to submit Form W-7, "Application for IRS Individual Taxpayer Identification Number", with a U.S. tax return. You can apply by mail or in person at a Taxpayer Assistance Center in the U.S.
If you are applying by mail, you will need to send your application to the following address:
Internal Revenue Service
ITIN Operation
Mail Stop 6090-AUSC
3651 S. Interregional, Highway 35
Austin, TX 78741-0000
If you are applying in person, you can use the services of an IRS-authorized Certifying Acceptance Agent. You will not be required to mail proof of identity and foreign status documents if you use this option. However, not all IRS Taxpayer Assistance Centers process ITINS, so be sure to verify this service when making an appointment.
When filing Form W-7, you must submit your original documents or copies of original documents that have been certified by the issuing agency. The International Center advises against sending original documents to the IRS. If you cannot obtain certified copies of your documents, you should plan to visit a Taxpayer Assistance Center that can verify your documents. Required documents include:
- Passport
- Visa stamp (in your passport)
- Copy of your fellowship or scholarship letter
- I-94 printed from the CBP I-94 website
- I-20 or DS-2019 form
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In-person vs mail application
International students can apply for an Individual Taxpayer Identification Number (ITIN) in person or by mail. Here is a detailed comparison of both methods:
In-Person Application:
When applying in person, you can use the services of an IRS-authorized Certifying Acceptance Agent (CAA) at a designated IRS Taxpayer Assistance Center. This option offers the convenience of not having to mail your proof of identity and foreign status documents. However, not all IRS taxpayer assistance centers process ITINs, so it is essential to verify this before scheduling an appointment. The CAA can authenticate most supporting documents, except for specific types of records, such as foreign military ID cards, school records, and medical records for dependents. Passports and birth certificates for dependents are among the documents that CAAs can authenticate.
Mail Application:
The other option is to apply for an ITIN by mail. This method involves mailing the ITIN application package, which includes Form W-7 and supporting documents, to the IRS address provided in the instructions. When submitting the application by mail, it is recommended not to send original documents, such as passports, but rather certified copies. The IRS will return the supporting documents to the mailing address provided on Form W-7 within 60 days. It is important to note that the IRS address provided for mailing the ITIN application is to be used only once and specifically for filing Form W-7.
Comparison:
Both application methods have their advantages. The in-person option eliminates the need to mail important documents, ensuring their security. However, scheduling an appointment at a Taxpayer Assistance Center may take several weeks. On the other hand, the mail application offers a more accessible approach without the need for an appointment, but it requires careful preparation and consideration of processing times, especially during tax season or when applying from overseas.
It is recommended to carefully review the IRS instructions and requirements for obtaining an ITIN and choose the application method that best suits your circumstances and preferences.
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Alternatives to ITIN
International students in the US may need a Taxpayer Identification Number (TIN) for various purposes, including trading on platforms like Robinhood, opening a bank account, or filing taxes. While an Individual Taxpayer Identification Number (ITIN) is one type of TIN, international students may have other options depending on their circumstances. Here are some alternatives to obtaining an ITIN:
Social Security Number (SSN)
A Social Security Number is a common alternative to an ITIN for international students in the US. Most foreign students and scholars in F-1, J-1, M-1, and Q-1 non-immigrant status are eligible to be employed in the US and can therefore apply for an SSN if they are employed or plan to be. The SSN is obtained from the Social Security Administration, and the application process typically takes 3-4 weeks. It is important to note that an SSN is valid for life, so you only need to apply once.
Petal Card
The Petal Card is a credit card designed for international students in the US, which does not require an SSN or ITIN. Instead, Petal creates a 'money score' to determine the creditworthiness of applicants based on their income and expenses. Therefore, international students with no previous credit history can build their credit profile using the Petal Card.
Deserve EDU Mastercard for Students
The Deserve EDU Mastercard is another credit card option for international students that does not require an SSN or ITIN. The application decision for this card is based on factors such as school, income, and expenditures. Additionally, it offers benefits like a low APR and no annual or foreign transaction fees.
Chase Freedom Student Credit Card
The Chase Freedom Student Credit Card is another credit card option that international students can apply for using an ITIN. This card offers several benefits, including a $50 initial bonus, Good Standing Rewards, credit line increases, and no annual fees.
Options House
Options House is a trading platform that allows users to open an account using an ITIN, which is typically issued to non-residents or undocumented people. This platform may be a more suitable option for international students who do not have an SSN or ITIN.
It is important to note that the eligibility requirements and application processes for these alternatives may vary, and international students should carefully review the criteria before proceeding. Additionally, consulting with a tax professional or attorney is advisable to understand the tax implications and ensure compliance with US laws.
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Frequently asked questions
An ITIN is a tax processing number issued by the Internal Revenue Service (IRS) to individuals who need to report income but are ineligible to obtain a Social Security Number (SSN).
Individuals who are not eligible for an SSN, such as non-resident aliens and their spouses and dependents, can apply for an ITIN. F and M students who are ineligible for an SSN must apply for an ITIN if they have a valid tax reason. J-1 students are eligible for SSNs and should not apply for an ITIN.
To apply for an ITIN, individuals must submit Form W-7, "Application for IRS Individual Taxpayer Identification Number," with a U.S. tax return. Supporting documents, such as a passport, visa stamp, and scholarship letter, may also be required. Applications can be submitted by mail or in person at a Taxpayer Assistance Center.
