ITIN- Individual Tax Identification Number (also known as “Tax ID”). Issued for Individuals
EIN-Employer Identification Number. Issued for business entities.
We have been processing ITIN applications for several years now and feel like this blog can help you to gain more clarity on if or why you may need or don’t need to apply for a ITIN.
You need an ITIN if you are a US resident or a nonresident alien that may have to file taxes in the US.
ITIN does not authorize work in the US, does not provide eligibility for social security benefits and does not qualify a dependent for earned income tax credit purposes.
You need an ITIN if the following apply to you:
1. You do not have an SSN and are not eligible to obtain one, and
2. You have a requirement to furnish a federal tax identification number or file a federal tax return, and
3. You are in one of the following categories:
o Nonresident alien who is required to file a U.S. tax return
o U.S. resident alien who is (based on days present in the United States) filing a U.S. tax return
o Dependent or spouse of a U.S. citizen/resident alien
o Dependent or spouse of a nonresident alien visa holder
o Nonresident alien claiming a tax treaty benefit
o Nonresident alien student, professor or researcher filing a U.S. tax return or claiming an exception
If so, then you must apply for an ITIN.