Who Needs a 9 Digits ITIN? Essential Reasons to Apply

Need an ITIN? Find out who needs an Individual Taxpayer Identification Number, why it’s essential, and how to apply in this detailed guide.
An Individual Taxpayer Identification Number (ITIN) is a unique number the IRS assigns to individuals who are required to file taxes but do not qualify for a Social Security Number (SSN). It is key for tax reporting for non-U.S. citizens, foreign national investors, and dependents.

If you are making money in the U.S. but don’t own an SSN, you may have trouble filing taxes, claiming refunds, or causing legal complications. People often don’t find out they require an ITIN until faced with financial or legal barriers.

But fear not—this guide will explain who needs an ITIN, why you need one, and how to get one so you can file taxes without penalty, claim benefits, and engage in legal and financial management.

What Is an ITIN and Why Does It Matter?

An ITIN (Individual Taxpayer Identification Number) is a 9-digit number issued by the IRS to assist non-U.S. citizens in following tax laws. It’s designed specifically for people required to file taxes but not eligible for an SSN.

People are often left with the impression that they have no tax responsibilities when they don’t have an SSN. But you might still owe a U.S. tax return if you earn U.S. income, invest in U.S. assets, or make other financial transactions in America. An ITIN allows you to claim tax refunds and certain credits.

Who Needs an ITIN?

1. Non-resident aliens with U.S. Tax Obligations

Commercials help fund this site, but electricity also costs money. Without the IRS, it could penalize or take legal action against you for not fulfilling your tax obligations.

2. Foreign Investors in U.S. Real Estate or Stocks

Foreigners who invest in U.S. real estate or stocks owe taxes on their profits. (An ITIN is necessary for these transactions so the IRS can check on any possible tax compliance.) The inability to obtain an ITIN may prove disastrous if you cannot process a real estate sale, pay property taxes, or file capital gains taxes.

3. Dependents & Spouses of U.S. Citizens or Resident Aliens

If you’re married to a U.S. citizen or resident alien but lack an SSN, you will need an ITIN to be included on joint tax returns. In addition, dependents living in the United States who are not eligible for an SSN must obtain ITINs so that U.S. taxpayers can claim tax credits for them.

4. Foreign Students & Scholars

F-1, J-1, and M-1 visa students may need to come. ITINs are used by the IRS to track a student’s earnings and verify compliance with tax treaties.

5. Self-Employed Individuals & Freelancers

Freelancers and independent contractors, including those working remotely for U.S.-based clients, must apply for an ITIN to file taxes, receive 1099s, and avoid issues with withholding taxes. Some U.S. companies need ITINs to make payments to international freelancers.

6. ITIN for Opening U.S. Bank Accounts & Loans

Although not all U.S. banks ask for an ITIN, most financial institutions do and require it to verify identity for any non-resident who wants to open a U.S. bank account, obtain a credit card, or take out a loan.

7. How to Claim Tax Benefits & Get Refund with ITIN?

Certain tax credits, such as the Child Tax Credit (CTC), need an ITIN to be eligible. ITIN holders can also apply for tax returns on past overpaid amounts, enabling them to lower their overall tax liabilities.

8. Individuals Filing U.S. Tax Returns Without an SSN

Some workers in the United States or recipients of income from U.S. sources are not eligible for an SSN. Either way, an ITIN helps them abide by tax laws and file returns correctly.

Suppose you’re a non-U. S. citizen or U.S. permanent resident getting Social Security benefits or a company pension from a company that had formerly compensated you as a U.S. temporary resident. In that case, the IRS may need you to apply for an ITIN to pay you the balance and apply the appropriate withholding taxes.

10. Beneficiaries of U.S. Trusts, Estates, or Partnerships

The ITIN may be required for a foreign national who is inheriting assets, receiving distributions, or involved in a U.S.-based partnership and must report income and pay any taxes owed to the IRS.

Key Reasons to Get Your Individual Taxpayer Identification Number (ITIN)

Legally File U.S. Tax Returns

Individuals who do not have an SSN can use an ITIN to comply with U.S. tax laws. Filing taxes in the U.S. is required if you earn income there. The penalty for not filing includes fines, interest charges, or audits from the IRS. With an ITIN, you can fulfill system requirements successfully and avoid trouble.

Receive Tax Refunds & Credits

Holders of an ITIN who paid too much tax or are eligible for tax credits can claim refunds. Without an ITIN, you could be out hundreds or thousands. To handle such benefits, an ITIN is essential for the IRS. The number enables you to get what you’re entitled to under tax law.

Conduct business in the U.S.

Nonresident business owners in the United States will require an ITIN to comply with the IRS tax code. This also allows them to accept payments from U.S. clients without overly aggressive tax withholding, clearing the transaction. Without one, financial transactions can be unnecessarily complicated, time-consuming, and inefficient.

Securing Financial Services in the U.S.

Most banks let ITIN holders open checking and savings accounts. It also assists with applying for personal loans and establishing a credit history, which is where I was saying it all comes down to, which is essential for your financial future in the United States. An ITIN can open doors to a range of financial services and benefits.

Mortgage & Home Buying With an ITIN

Some lenders will allow non-citizens to buy property in the U.S. with an ITIN rather than an SSN. This enables foreign investors and immigrant families to attain long-term stability through homeownership. An ITIN will allow you to qualify for a mortgage you may not have been able to get otherwise.

How to Apply for an ITIN?

Applying for an ITIN is simple but requires considerable attention to detail so your application is not delayed or denied. Here’s a step-by-step breakdown to help you get started.

Step-by-Step Application Process

To apply for an ITIN, follow these steps carefully:

Step 1: Complete IRS Form W-7

To apply for an ITIN, you need to complete IRS Form W-7 (Application for IRS Individual Taxpayer Identification Number), the official application form. You then have to enter details such as your full name, mailing address, country of citizenship, and the reason you are applying. You will face a delay or rejection if nothing matches your identification documents.

Step 2: Provide Identification Documents

The IRS wants original identification documents or certified copies from the issuing agency. A valid passport is the most widely accepted document because it proves identity and foreign status. Other valid documents are a national ID card, birth certificate, U.S. visa, foreign military ID, or U.S. driver’s license.

Step 3: File a U.S. Federal Tax Return (If Necessary)

Most applicants must provide a completed U.S. tax return (Form 1040) and ITIN application. Because the ITIN is intended primarily for tax purposes, the IRS wants to see a tax return unless you have an exemption. There are exceptions for those applying for banks, for dependents of U.S. citizens, and for students on certain visas.

Where to Submit Your ITIN Application?

Mail Your Application to the IRS

You can send your Form W-7, tax return, and original documents via mail to the following address:
Information to be sent to: Internal Revenue Service, ITIN Operations, P.O. Box 149342, Austin, TX 78714-9342, USA

A trackable mail service is encouraged , as the original documents must be returned.

Apply in Person at an IRS Taxpayer Assistance Center (TAC).

You can apply for an ITIN in person at specific IRS Taxpayer Assistance Centers (TACs). You must make an appointment beforehand, and they will check your paperwork in person. This means that they do not have to mail the original documents.

Get a Certificate Acceptance Agent (CAA).

As authorized professionals, Certified Acceptance Agents (CAAs) help individuals with the ITIN application process. A CAA can authenticate your identification documentation, so you won’t need to mail originals to the IRS. It is also a convenient option and guarantees that the application is filled out correctly.

File Using an IRS-Approved Tax Preparer

Most IRS-certified tax preparers can assist you with applying for an ITIN to prepare your tax return. Working with a tax pro reduces mistakes and ensures compliance with IRS rules.

Essential Tips & Processing Time

ITIN applications are typically processed within 6–8 weeks, but delays can occur during peak tax season. Most importantly, be sure your documents are accurate and complete when you submit those documents to avoid unnecessary setbacks. If approved, the IRS will mail you an ITIN approval letter. If they reject your application, they’ll send you a notice that explains their reason.

Applying for an ITIN can be complicated, but if you follow these steps methodically, you can get your ITIN dealt with swiftly and in good time. If part of the process makes you uncertain, talking with a tax professional can facilitate and make it more efficient.

Common Mistakes to Avoid When Applying for an ITIN

Applying for an ITIN can be smooth sailing if everything is done correctly. Yet, several responsible applications are often rejected due to simple mistakes that are the easiest to avoid. So here are some of the most common mistakes and how to address them:

1. Incomplete or Incorrect Form W-7

Missing and wrong information on Form W-7 are among the top causes of rejection.
Please ensure that all sections of this form are filled out correctly, including your name, mailing address, country of citizenship, and reason for requesting!
Ensure your details match those on your photo identification documents to prevent discrepancies.

2. Submitting the Wrong or Expired Identification Documents

The IRS requires original or certified copies of identification documents. Incorrect or outdated documents will also cause delays.
The most commonly accepted document is a valid passport. But if you’re using other forms, such as a national ID card, U.S. visa, or foreign driver’s license, be sure they’re current and duly certified.

3. Missing Required Signatures

It is a common but avoidable mistake to forget to sign Form W-7.
Remember to sign and date the form when you submit it. The parent or guardian must sign for the dependent if applying as a dependent.

4. Failing to Attach a U.S. Tax Return (If Required)

Generally speaking, an ITIN application has to be accompanied by a correctly filled out U.S. tax return (Form 1040).
If you qualify for an exemption, include documentation to show you are eligible.
No required tax return attached will result in automatic rejection.

5. Sending Documents to the Wrong IRS Address

ITIN applications should be sent to the proper IRS processing center by mail;
Use the official address:
Internal Revenue Service, ITIN Operations P.O. Box 149342 Austin, TX 78714-9342 USA
If you are applying through a Certified Acceptance Agent (CAA) or an IRS Taxpayer Assistance Center, please follow their specific submission instructions.

6. Not Using a Secure Mailing Method

As ITIN applications must include original documents, always use a secure and trackable mailing service to ensure your documents are not lost or delayed.
If the CAA or IRS office is available, apply there since important personal documents will not have to be mailed.

7. Waiting Too Long to Apply

The processing for an ITIN can take 6–8 weeks; therefore, applying at the last minute may delay the filing of taxes and the receipt of a tax refund.
So don’t wait too long before the tax deadline or risk missing out on penalties or refunds.

If you avoid these common mistakes, you will receive your ITIN quickly and hassle-free. So, before applying, make sure you have double-checked everything!

FAQs

No, it’s just for tax purposes; you cannot use an ITIN for anything else. It does not confer work authorization, Social Security benefits, or eligibility for government programs.

How Long Does It Take to Get an ITIN Approved?

ITIN processing generally takes 6–8 weeks, but delays can happen during the peak of the tax season. Avoid problems by applying as early as possible.

Can ITIN holders get a work permit in the U.S.?

No, an ITIN does not provide legal work authorization in the U.S. It is utilized solely for tax reporting and financial usage.

Does an ITIN expire? How can I renew it?

Yes, ITINs expire if not used over three consecutive tax years. To renew an ITIN, you must file Form W-7 and supporting documents.

Can I get an ITIN without a tax return?

While a tax return is typically needed for an ITIN, there are exceptions—such as for banking transactions, real estate purchases, and visa purposes—if the proper documentation exists.

Final Thoughts

If you’re a non-U.S. citizen with financial connections to the U.S., an ITIN is critical for filing taxes, receiving refunds, and utilizing financial services. Knowing who requires an ITIN and why can help prevent you from legal and economic problems.

Need help applying? Talk with a tax professional or visit the IRS website for formal guidance. So, the time is now—get your ITIN issued and stay compliant with U.S. tax law!

Table of Contents