What is an ITIN?
If you are a Non-US citizen operating in the states, then you must have heard of the term ITIN and how important it is for you to obtain it. ITIN is known as the Individual Taxpayer Identification Number issued by the IRS. As already made clear, it is a unique ID used by the individuals to pay their taxes.
For US citizens, the Social Security Administration (SSA) issues a Social Security Number (SSN) which is used to pay individual taxes. However, individuals who cannot obtain an SSN or are not eligible to obtain it must have an ITIN in order to pay their taxes.
Who needs it?
If you are still not sure whether you need to apply for an ITIN or not, then below are the questions you must ask yourself?
- Do you not have an SSN or are you not eligible for it?
- Are you a non-resident alien filing a US federal tax return?
- Are you a Non-US Resident who needs to file a tax return?
- Are you a dependent or spouse of a person who is a US resident?
- Are you a dependent or spouse of a non-resident visa holder?
- Are you a non-resident who needs to claim for a tax treaty?
- Are you a non-resident researcher, student or professor who needs to file a US tax return or file for an exception?
If the answer to any of these questions is YES, then you need to apply right away!
Why is it important to have an EIN?
Now that you know WHO needs an EIN, let us clear out the WHY for you.
An EIN facilitates the following things for the EIN holders:
An EIN facilitates the following things for the EIN holders:
ITINs serve the purpose of filing taxes and help the individuals who can not have the security of SSNs. With the ITIN, the non-residents having a taxable income can easily comply with the US tax laws and save themselves from penalties.
In addition, an ITIN is required if you want to open a US bank account, PayPal account, Stripe Account, eCommerce account, file a tax return, or even to get a credit score being a non-US resident.
However, you must understand that ITIN is solely issued for the tax filing purposes and does not make you eligible for other benefits such as work in the US, social security, or any Earned Income Tax Credits.
Reasons to choose MAS
Now that you know WHO needs an EIN, let us clear out the WHY for you. An EIN facilitates the following things for the EIN holders:
IRS has some approved acceptance agents which can help you in obtaining an ITIN. Fortunately, Mercurius Advisory Services (MAS) is one of them.
Being an IRS Certified Acceptance Agents, MAS can help you with the following steps to ease the process of obtaining an ITIN:
- Reviewing the documents required
- Answering your queries along the way
- Forwarding the certificate and application to the IRS
- Providing a complete online verification process
FAQs
Can I apply for ITIN without having a company in the US?
ITIN is basically required to file taxes and it can be any taxable income such as working in a firm. Therefore, you do not specifically need to have a company in the US. However, if you are planning to file for a federal tax return for a business, then you must have a company in the US.
Is SSN necessary to get an ITIN?
No. ITIN is more or less a replacement for SSN. It is suitable for the non-residents or individuals who are not eligible to obtain an SSN.
Do I have to be living in the states to get an ITIN?
You need to have an ITIN if you are having a taxable income in the US or if you had a taxable income during the time you were based in the US.
Can I apply for an ITIN from anywhere in the world?
Yes, you can apply for an ITIN online from anywhere across the countries.
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