There are few nine-digit combinations that can be as useful as an Individual Taxpayer Identification Number (ITIN), but many people are not aware of its various applications. We’re here to demystify the ITIN. 

An ITIN is a nine-digit number beginning with the number 9 issued by the Internal Revenue Service (IRS) to individuals who are required to have a taxpayer identification number for federal tax purposes but who do not have and are not eligible to get a social security number (SSN). ITINs are often, but not exclusively, used by undocumented taxpayers wanting to meet their federal tax obligations. 

Filing for an ITIN can open new doors for taxpayers who are not eligible for an SSN and/or their family members. An ITIN is more than just a 9-digit number; it’s an IRS tax processing number.  It was created to help individuals to file their taxes. Many families across the United States, regardless of immigration status, use ITINs to file taxes & access numerous benefits. One such benefit is the Child Tax Credit. The Child Tax Credit is available for individuals with children under 17 years old who have social security numbers. With an ITIN, you can file for taxes and automatically qualify to receive money for your children regardless of immigration status. That means if you’re not filing your taxes, you could be missing out on money for your family! 

Many people think they cannot open a bank account without a social security number, but that is where an ITIN comes in. With an ITIN, you can open checking and savings accounts. In addition, a bank account can make it easier to track your money and access services that require you to have a debit card. The pandemic has shown us how hard it can be to live without a bank account; many stores went completely cashless as a part of their COVID safety rules. 

A final critical reason for getting an ITIN is to build your credit. Achieving your financial goals requires a credit history in the United States. From buying a car to signing off on a mortgage for a new home, so much of what we do requires a credit history and a healthy credit score. An ITIN allows you to open a credit card or apply for a loan. 

In order to acquire an ITIN, one must complete Form W-7 (a one-page form with 14 pages of instructions). The application is usually submitted with a federal tax return; however, there are limited exceptions, such as opening an interest-bearing savings account or complying with other information reporting requirements. More information about the Form W-7 can be found here and you can also get your ITIN renewals completed with local VITA programs!