Douglas Olsen
International students studying in the US may need to obtain a Taxpayer Identification Number (TIN) for various tax-related purposes. The type of TIN an international student needs depends on their residency status and source of income. The two main types of TINs relevant to international students are Social Security Numbers (SSN) and Individual Tax Identification Numbers (ITIN). SSNs are generally for employed non-residents, while ITINs are for non-residents with US source income such as taxable scholarships or fellowships who are not eligible for an SSN. Students can use the IRS's Interactive Tax Assistant tool to determine if they need to apply for an ITIN. To apply for an ITIN, students must complete Form W-7 and submit it along with their tax return, proof of identity, and foreign status documents to the IRS.
| Characteristics | Values |
|---|---|
| Who can apply for a Tax Identification Number? | Aliens/non-residents who are employed or eligible to be employed in the United States |
| What are the types of Tax Identification Numbers? | Social Security Number (SSN) and Individual Taxpayer Identification Number (ITIN) |
| Who can apply for SSN? | Aliens/non-residents who are employed or eligible to be employed in the United States |
| Who can apply for ITIN? | Aliens/non-residents who are not eligible for SSN but need to file a tax return because of taxable income (like scholarships, dividends, royalties, etc.) |
| How to apply for ITIN? | Submit Form W-7, “Application for IRS Individual Taxpayer Identification Number,” with a U.S. tax return |
Explore related products
What You'll Learn
Eligibility for international students
International students can apply for either a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN) for use on tax-related documents.
Eligibility for SSN
Foreign students and scholars in F-1, J-1, M-1, and Q-1 non-immigrant status are eligible to be employed in the United States and can, therefore, apply for an SSN if they are employed in the country.
Eligibility for ITIN
International students who are not eligible for an SSN, or who do not meet the Social Security Administration's evidence requirements for an SSN, may apply for an ITIN from the Internal Revenue Service (IRS) if they have a valid tax reason. This includes students who receive scholarships, fellowships, grants, or non-employment stipend payments. It is important to note that the IRS will not issue an ITIN unless it is required for a tax return form.
Students with F and J non-resident status can use GLACIER Tax Prep (GTP) software to determine if an ITIN is needed and to prepare the application form.
Additionally, if you are a J-1 student or scholar, you should apply for an SSN instead of an ITIN.
Scotland: An International Student's Dream Destination
You may want to see also
Explore related products
How to apply for an ITIN
An Individual Taxpayer Identification Number (ITIN) is issued by the Internal Revenue Service (IRS), the U.S. tax collection agency. It is required for non-resident international students who need to file a tax return due to taxable income, such as scholarships, but are not eligible for a Social Security Number (SSN). SSNs are only issued to non-residents who are employed.
To apply for an ITIN, you can follow these steps:
Determine your eligibility:
Before applying for an ITIN, ensure that you meet the eligibility criteria. You need an ITIN if you have a federal tax purpose and are not eligible for an SSN. This could include situations where you are legally required to file a U.S. federal income tax return, want to claim a refund or tax benefit, or need to report income by filing a tax return.
Gather required documents:
You will need to provide proof of foreign status and identity, as well as proof of U.S. residency for dependents, if applicable. Supporting documents may include passports, birth certificates, and other relevant records.
Complete Form W-7:
Fill out Form W-7, Application for Individual Taxpayer Identification Number. This form can be found on the IRS website or obtained from an IRS office. Each family member applying for an ITIN must have their own completed Form W-7.
Submit the application:
You can submit your application by mail or in person at a Taxpayer Assistance Center. If applying by mail, send your completed Form W-7 and supporting documents to the IRS address provided on their website. If applying in person, locate a nearby Taxpayer Assistance Center and schedule an appointment. Bring your completed Form W-7 and supporting documents to your appointment.
Allow processing time:
It takes approximately 7 weeks to receive a notification about your ITIN application status. However, during tax season (January 15 to April 30) or for overseas applications, it can take 9 to 11 weeks. If you do not receive a response within this timeframe, contact the IRS.
It is important to note that you should not apply for an ITIN if you are employed or intend to start working soon. In such cases, you should apply for an SSN instead. Additionally, if you are an international student and your fellowship or grant income is less than the cost of tuition, you may not need an ITIN.
Quebec: An International Student's Dream Destination
You may want to see also
Explore related products
What is an ITIN?
An Individual Taxpayer Identification Number (ITIN) is a 9-digit number issued by the Internal Revenue Service (IRS), which is the U.S. tax collection agency. The number is for non-resident immigrants and international students who need to file a tax return because of taxable income but are not eligible for a Social Security Number (SSN). SSNs are only issued to non-residents who are employed.
ITINs are issued by the IRS to individuals who are not eligible to obtain a valid U.S. SSN but are required by law to file a U.S. Individual Income Tax Return. Both resident and non-resident immigrants may have federal tax return and payment responsibilities under the Internal Revenue Code. Individuals must have a filing requirement and file a valid federal income tax return to receive an ITIN, unless they meet an exception.
ITINs are also issued for a spouse or dependents, if documentation and signature requirements are met and they are claimed on a valid tax return. As an ITIN holder, you may be eligible to claim a child or dependent care tax credit when you file.
To apply for an ITIN, individuals can submit IRS form W-7, which records biographical information, along with specified types of valid supporting ID and a tax return. Applicants can apply directly or file with a certifying acceptance agent, who can assist with the application process for a fee. It can take 7-11 weeks to receive an update on the status of an ITIN application.
International Students: Your Route to Canadian PR
You may want to see also
SSN vs ITIN
International students and scholars in the US may apply for either a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN) for use on tax-related documents. These nine-digit numbers are used for tax and wage reporting purposes.
SSN
Foreign nationals who are employed or intend to start work soon are eligible to apply for an SSN. 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 United States and can, therefore, apply for an SSN if they are employed in the country.
ITIN
Foreign nationals who are not eligible for an SSN may apply for an ITIN if they have a valid tax reason for needing one. An ITIN is required for international students who do not have an SSN but receive grants, fellowships, or scholarships. Non-employment income, including scholarships, fellowships, grants, or non-employment stipend payments, may also require an ITIN for reporting purposes.
It is important to note that the ITIN cannot be used in place of an SSN if an individual is eligible for the latter. To apply for an ITIN, individuals must submit a completed IRS Form W-7 Application for IRS Individual Taxpayer Identification Number, along with documentation to substantiate their foreign status and identity, to the IRS.
Transferring Credits: International Students' Community College Benefits
You may want to see also
Processing times for applications
The processing time for Individual Tax Identification Number (ITIN) applications can vary depending on various factors. Generally, the Internal Revenue Service (IRS) indicates that if an individual is eligible for an ITIN and the application is complete, the IRS will assign a number within approximately seven weeks. However, if you are filing your ITIN application during peak tax processing times, such as March or April, the process can take much longer, possibly even months. Nonetheless, most applicants will usually hear back from the IRS within six weeks.
It is important to note that there are different paths to obtaining an ITIN, and the processing time may differ based on the chosen path. For instance, the IRS provides three options for applying for an ITIN: mailing in the required documents, including Form W-7, tax return, proof of identity, and foreign status documents; visiting a designated IRS Taxpayer Assistance Center, which does not require mailing in proof of identity and foreign status documents; or using an "acceptance agent" to prepare your ITIN application. The processing time may vary depending on which option you choose.
Additionally, the eligibility criteria for obtaining an ITIN can impact the processing time. Most foreign students and scholars in F-1, J-1, M-1, and Q-1 nonimmigrant status are eligible to apply for an ITIN if they have a valid tax reason. However, J-1 students and scholars should apply for a Social Security Number (SSN) instead of an ITIN. Therefore, the processing time for ITIN applications may be influenced by the specific eligibility criteria and the volume of applications received by the IRS.
To expedite the process, it is recommended to review the eligibility requirements and ensure that your application is complete and accurate. The IRS's Interactive Tax Assistant tool can help determine eligibility, and certain universities provide access to tax preparation software, such as Glacier Tax Prep, to assist with the process. Furthermore, it is generally recommended not to send original documents, such as passports, with your application. Instead, certified copies or copies certified by the issuing agency can be submitted.
Working in Vietnam: Opportunities for International Students
You may want to see also
Frequently asked questions
A Taxpayer Identification Number (TIN) is an identification number used by the Internal Revenue Service (IRS) for tax administration.
Aliens or non-residents who need to file a tax return because of taxable income but are not eligible for a Social Security Number (SSN) will need a Tax Identification Number.
You can apply for a Tax Identification Number by completing IRS Form W-7, IRS Application for Individual Taxpayer Identification Number. You must also submit documentation substantiating your identity and foreign/alien status.
You can mail your application to the address shown in the Form W-7 instructions, present it at an IRS walk-in office, or process your application through an Acceptance Agent authorized by the IRS.
