What is an Individual Tax Identification Number (ITIN)?
A Plain English Guide for Non-U.S. Citizens and Expats
If you live in the United States — or earn money from U.S. sources — you may need to file a tax return. But what if you don’t qualify for a Social Security Number (SSN)? That’s where the Individual Taxpayer Identification Number, or ITIN, comes in.
In this guide, we’ll break down what an ITIN is, who needs one, how to apply, and why it matters — all in simple, everyday language.
Understanding the ITIN
An Individual Taxpayer Identification Number (ITIN) is a nine-digit number issued by the Internal Revenue Service (IRS) to people who need a U.S. taxpayer ID but aren’t eligible for a Social Security Number.
Think of it as your “tax ID” for federal tax purposes. It’s used only for reporting and paying taxes — not for work authorization, Social Security benefits, or immigration status.
Example:
If you’re a non-U.S. citizen who owns rental property in the U.S., you’ll need an ITIN to report your rental income to the IRS.
Who Needs an ITIN?
You may need an ITIN if:
• You’re a nonresident alien required to file a U.S. tax return.
• You’re a U.S. resident alien (based on days spent in the U.S.) but don’t qualify for an SSN.
• You’re a dependent or spouse of a U.S. citizen or resident alien.
• You’re a dependent or spouse of a nonresident alien visa holder.
• You’re a foreign investor earning U.S. income (e.g., dividends, royalties, rental income).
Key point: If you have a U.S. tax filing requirement but can’t get an SSN, you almost certainly need an ITIN.
What an ITIN Is Not
It’s important to clear up some common misconceptions. An ITIN does not:
• Authorize you to work in the U.S.
• Qualify you for Social Security benefits.
• Change your immigration status.
• Serve as general identification outside the tax system.
Its sole purpose is to help the IRS process your taxes correctly.
Why the ITIN Matters
Even if you’re not a U.S. citizen, paying taxes on U.S. income is a legal requirement. Having an ITIN allows you to:
• File your tax return and stay compliant with U.S. tax laws.
• Claim certain tax benefits (e.g., Child Tax Credit, education credits) if you qualify.
• Avoid higher withholding rates on certain types of U.S. income.
• Build a tax history, which can be useful for future visa or immigration applications.
How to Apply for an ITIN
Applying for an ITIN is straightforward, but you must follow the IRS rules carefully.
Step 1: Complete Form W-7
This is the official Application for IRS Individual Taxpayer Identification Number. You’ll need to provide:
• Your name and mailing address.
• Your foreign address (if applicable).
• Your date and place of birth.
• Your country of citizenship.
• The reason you need an ITIN.
Step 2: Gather Required Documents
The IRS requires proof of both identity and foreign status. Common documents include:
• Passport (most common — serves as both proof of identity and foreign status).
• National ID card.
• Birth certificate.
• Foreign voter’s registration card.
Step 3: Submit Your Application
You can apply:
1. By mail — Send Form W-7, your tax return, and original documents (or certified copies) to the IRS.
2. In person — Through an IRS-authorized Certifying Acceptance Agent (CAA) or at an IRS Taxpayer Assistance Center.
3. From abroad — Through certain U.S. embassies or consulates.
When to Apply
You should apply for an ITIN when you’re ready to file your first U.S. tax return. The IRS processes ITIN applications year-round, but if you apply during tax season (January–April), expect longer processing times — up to 9–11 weeks.
Renewing an ITIN
ITINs don’t last forever. They expire if:
• You haven’t used it on a U.S. tax return for three consecutive years.
• It was issued before 2013 and hasn’t been renewed.
To renew, submit a new Form W-7 with required documents — but you don’t need to attach a tax return if you’re just renewing.
Common Mistakes to Avoid
• Sending photocopies instead of original or certified documents.
• Filing Form W-7 without a tax return (unless you meet an exception).
• Using an expired ITIN — this can delay your refund.
• Incorrect mailing address — which can cause lost documents.
Final Thoughts
An Individual Taxpayer Identification Number is a vital tool for anyone who earns U.S. income but doesn’t qualify for a Social Security Number. It keeps you compliant, helps you claim eligible tax benefits, and ensures your tax records are accurate.
If you think you need an ITIN, start the process early, gather the right documents, and consider working with a Certifying Acceptance Agent to avoid delays.
📞 Need Help Applying for an ITIN?
Beechhurst Capital Advisors LLC specializes in helping non-U.S. citizens, expats, and foreign investors navigate the ITIN application process with accuracy and efficiency. As an IRS Certifying Acceptance Agent, we can verify your documents on the spot — so you don’t have to mail originals to the IRS.
✅ Expert guidance on Form W-7
✅ Document certification without mailing originals
✅ Fast, compliant, and stress-free process
Contact us today to schedule your ITIN consultation
FAQ Section
What is an ITIN used for?
An ITIN is used for U.S. federal tax reporting by people who don’t qualify for a Social Security Number. It allows you to file taxes, claim certain credits, and comply with IRS rules.
Can I work in the U.S. with an ITIN?
No. An ITIN does not grant work authorization or eligibility for Social Security benefits. It’s strictly for tax purposes.
How long does it take to get an ITIN?
Processing times vary, but it typically takes 7–11 weeks. During peak tax season, it may take longer.
Do ITINs expire?
Yes. ITINs expire if not used on a tax return for three consecutive years or if issued before 2013 without renewal.
How can Beechhurst Capital Advisors help me apply?
As an IRS Certifying Acceptance Agent, Beechhurst Capital Advisors LLC can verify your documents locally, prepare your Form W‑7, and submit your application without mailing originals to the IRS.
