What is an ITIN?
The Individual Taxpayer Identification Number (ITIN) is a crucial tool for individuals ineligible for a Social Security Number (SSN), such as undocumented immigrants and international students. It allows them to report taxes, build credit, and access financial products, facilitating their integration into the U.S. financial system.
What are the benefits of having an ITIN?
An ITIN gives you access to many services or processes that require an identification number issued by the IRS.
Financial Services:
Start building a credit history
Apply for credit cards
Personal loans, including for cars
Health insurance
Mortgages or loans for purchasing a home
Qualify for rental or leasing contracts
Driver’s License:
There are 16 states where you can obtain a driver’s license regardless of immigration status. Requirements may vary by state, but an ITIN along with a tax return can be used to verify their personal information when applying. The states are: California, Colorado, Connecticut, Delaware, District of Columbia, Hawaii, Illinois, Maryland, Nevada, New Jersey, New Mexico, New York, Oregon, Utah, Vermont, Virginia, and Washington.
For Entrepreneurs or Business Owners:
If you own a business or independent practice, an ITIN allows you to meet tax obligations and apply for an Employer Identification Number (EIN), which is necessary to open a business bank account if their business has employees.
After filing taxes using your ITIN:
Your tax returns can serve as proof of income for many processes (loans, leases, etc.)
Your returns can function as proof of address
If participating in immigration legal proceedings, your tax returns can serve as evidence of "good moral character."
You may qualify for the Child Tax Credit, as long as your child is a minor and has a SSN.