Understanding the Individual Taxpayer Identification Number (ITIN) and Its Importance

Definition & Meaning

An Individual Taxpayer Identification Number (ITIN) is a nine-digit number issued by the Internal Revenue Service (IRS) for tax processing purposes. It starts with the digit nine and has the fourth and fifth digits ranging from 70 to 88. ITINs are assigned to individuals who need a U.S. taxpayer identification number but are not eligible for a Social Security Number (SSN). This typically includes non-resident aliens who must file a U.S. tax return, such as those claiming a tax refund. To obtain an ITIN, individuals must have a filing requirement and submit a valid federal income tax return.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A non-resident alien who works in the U.S. but does not qualify for an SSN needs to file a tax return to report their income. They would apply for an ITIN to fulfill their tax obligations.

Example 2: A person living abroad who is a dependent of a U.S. citizen may need an ITIN to be included on the citizen's tax return for claiming tax credits (hypothetical example).

What to do if this term applies to you

If you need an ITIN, start by determining your eligibility and filing requirements. You can apply for an ITIN using Form W-7, which you can find on the IRS website. Ensure you include your federal income tax return with your application. For assistance, consider using legal templates from US Legal Forms to simplify the process. If your situation is complex, it may be beneficial to consult a tax professional or attorney.

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