ITIN - Who needs one!

Who needs an ITIN?
IRS issues ITINs to foreign nationals and others who have federal tax reporting or filing requirements and do not qualify for SSNs. A non-resident alien individual not eligible for a SSN who is required to file a U.S. tax return only to claim a refund of tax under the provisions of a U.S. tax treaty needs an ITIN.

Other examples of individuals who need ITINs include:
   • A nonresident alien required to file a U.S. tax return 
   • A U.S. resident alien (based on days present in the United States) filing a U.S. tax return 
   • A dependent or spouse of a U.S. citizen/resident alien
   • A dependent or spouse of a nonresident alien visa holder


How do I know if I need an ITIN?
If you do not have a SSN and are not eligible to obtain a SSN, but you have a requirement to furnish a federal tax identification number or file a federal income tax return, you must apply for an ITIN.

If you have an application for a SSN pending, do not file Form W-7. Complete Form W-7 only if the Social Security Administration (SSA) notifies you that a SSN cannot be issued.

To obtain a SSN, see Form SS-5, Application for a Social Security Card. To get Form SS-5 or to find out if you are eligible to obtain a SSN, contact a SSA office. By law, an alien individual cannot have both an ITIN and a SSN.

IRS processes returns showing SSNs or ITINs in the blanks where tax forms request SSNs. IRS no longer accepts, and will not process, forms showing "SSA", 205c", "applied for", "NRA",& blanks, etc.

You cannot file W-2s for recipient's with ITINs;,  you should file Form 1042-S.  Form 1042-S  is used to report  the following:

File Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding, to report amounts paid to foreign persons (including persons presumed to be foreign) that are subject to withholding, even if no amount is deducted and withheld from the payment because of a treaty or Code exception to taxation or if any amount withheld was repaid to the payee.

DO NOT use Form 1042-S to report items required to be reported on any of the following forms:

Form W-2 (wages and other compensation made to employees (other than compensation for dependent personal services for which the beneficial owner is claiming treaty benefits, including wages in the form of group-term life insurance).

Any Form 1099.

For more information on How to Apply:  http://www.irs.gov/Individuals/General-ITIN-Information

 

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