At MyBambu, we always want you to learn along with us. We know that getting accustomed to a new country where laws and work processes are different can be a challenge. That’s why we’ve created this blog to help you learn and familiarize yourself with important topics in the United States, such as an ITIN.
Let’s start by understanding what ITIN is. ITIN stands for Individual Taxpayer Identification Number. This number is used for tax processing and is issued by the Internal Revenue Service (IRS). It is provided to those who do not qualify for a Social Security Number, regardless of their immigration status. It is important to emphasize that even undocumented or documented immigrants must file tax returns and make tax payments.
What is ITIN Used For? The ITIN is used to allow people without a Social Security Number to file their tax returns and comply with the law. It enables immigrants to establish a commercial identity history, which can be beneficial in the future when obtaining business licenses or contributing to the immigration process, as it demonstrates responsible citizenship. It is important to note that having an ITIN does not imply any legal status in the United States.
An ITIN does not entitle you to Social Security benefits and does not change your immigration status or your right to work in the United States.
How to Know If You Need an ITIN
If any of the following options apply to your situation, you may need to obtain an ITIN:
- You do not have a Social Security Number because you do not meet the requirements to obtain one.
- You are required to comply with federal taxes.
- You are a nonresident alien but still must file tax returns.
- You are a dependent or spouse of a foreign national living in the United States.
- You are a foreign national claiming a benefit related to the tax system.
If any of these situations apply to you, you should apply for an ITIN.
How to Obtain an ITIN
To obtain an ITIN, you must follow these steps. Remember that the process is free of charge.
- Complete Form W-7 (Application for IRS Individual Taxpayer Identification Number) with all the requested information.
- Include your tax return.
- Prove your identity by providing original documents that demonstrate who you are, such as your passport or any document from your home country, or a driver’s license, among others.
The processing time to receive your ITIN can take up to six weeks, and your original documents or certified copies should be returned within 14 weeks. Processing times may vary. It is always best to check with the IRS directly for up-to-date information: https://www.irs.gov/individuals/how-do-i-apply-for-an-itin. It is important to know that ITINs are valid for five years from the year they were issued and may expire if they have not been used on at least one federal tax return for three consecutive years.
In addition to this, we want to share some of the benefits of having an Individual Taxpayer Identification Number:
- You can pay taxes. Remember that not doing so can have legal implications.
- You can build a credit history. With an ITIN, you can apply for credit, such as a personal loan or even a credit card. Not all financial institutions accept ITINs, but some do.
- You can apply for a business loan. Keep in mind that most lenders require a Social Security Number, but some accept ITINs in their applications.
We hope you’ve learned with MyBambu. Don’t forget that we are always ready to help you, and that to open an account with us, you don’t need an ITIN—just a document from your home country, and that’s it. Plus, we do not verify your immigration status.
Thank you for reading.
See you in the next article!
