An ITIN Application is the form that is filled out by people who want to obtain an ITIN Number, or Individual Tax Identification Number. The ITIN Application, also known as W7 Form has been used by non-resident aliens and sometimes immigrants to obtain financing, and also as a means for those people to pay taxes on wages earned.
Once non-resident aliens are ready to fill out their taxes, they will need to fill out the ITIN Application and attach it to their tax return.
It’s important to remember that the anyone can fill out the ITIN Application at any point during the year, but if the ITIN Application is not completed by the time taxes are due, the registrant could be subjected to late penalties.
If you meet one of the exceptions to the tax filing requirement, submit Form W-7, along with the documents that prove your identity and foreign status and the required supplemental documents to substantiate your qualification for the exception, as soon as possible after you determine that you are covered by that exception.
Who Needs to Complete the ITIN Form?
The ITIN Application is for an individual who needs a US tax identification number, but is not eligible for a Social Security Number. Generally, you can get a Social Security Number (“SSN”) if you are a US citizen, lawful permanent resident (green-card holder), or have a valid work permit.
Most “non-resident aliens” who have a tax connection with the United States need an ITIN Number. A non-resident alien is someone who is not a US citizen or resident. A “green-card” holder is a resident. Certain other people who spend a lot of time in the US are considered residents. These people will probably want to Apply for an ITIN Number.
There are many reasons you may want to fill out the ITIN Application. Here are some:
* An individual who needs to file a US income tax return, but does not qualify for an SSN needs to get an ITIN. For example, if you invested in US rental real estate (even if through a Canadian partnership), you need to file a return annually.
* If you invested in a US business, you need to file a US tax return, even if there were losses during the year.
Spouses and dependents need ITINs so that they can be claimed on the taxpayer’s US tax return. (Of course, spouses and dependents who can get their own SSNs don’t need ITINs).
* Sometimes a non-resident alien who dies owning US property. The estate often needs to file a US estate tax return, even if there is no tax. The estate needs an Employer Identification Number (“EIN”), not an ITIN. We can also process this application. Click ITIN Application to complete the ITIN Form and Apply for an ITIN Number. Also be sure to check out Government Refinance Mortgage Programs.
WHO NEEDS AN INDIVIDUAL TAX IDENTIFICATION NUMBER (ITIN)?
An individual who is not eligible for a Social Security Number (SSN) and receives non-employee compensation such as honorarium, lecture fees, or performance fees, needs an ITIN prior to receiving payment from UC Riverside. An exception currently applies to individuals if they receive only travel expense reimbursements.
Advantages of Filing Taxes and obtaining an Individual Taxpayer Identification Number (ITIN):
- You may get a cash refund on your tax returns
- You can prove that you have lived in the United States
- Filing taxes is considered “good moral character” by the USCIS
- You comply with U.S. tax laws by filing and paying taxes
- Tax returns can be requested by banks and mortgage companies when applying for a loan
- Filing taxes may help you to apply for residency in the future
- Some banks and credit card companies may let you open an account with an ITIN, instead of a Social Security Number
- You are establishing a credit history by obtaining an ITIN and filing taxes