What is an ITIN Number?

The ITIN (Individual Taxpayer Identification Number) is a number issued by the United States IRS for foreigners who do not have a Social Security number but have tax obligations in the country.

Designed for non-residents, the ITIN number has recently become trendy due to its usefulness when it comes to creating bank accounts and payment gateways like Stripe or Paypal.

What is the ITIN number for?

Some of the benefits of having an ITIN number in the United States are;

It facilitates the filing of tax returns in the United States.
You will have the option to start building credit in banks in the United States
By identifying yourself with the ITIN instead of a passport or ID you will have greater privacy in your banks with respect to Europe (CESOP, CRS..) or the Tax Agency.
Payment Gateways like Stripe and Paypal will allow you to create accounts in the United States in your name while being a foreigner.
You will be able to create bank accounts in national banks such as Bank of America, CitiBank etc..
It allows compliance with tax obligations for those who are not eligible for a Social Security number.
It enables participation in financial and commercial transactions in the country.

Requirements for the ITIN number

To get an ITIN number there are several documents you must submit to the IRS, below are the 2 most important ones:

Proof of your identity (With the Passport you can verify the rest)
Proof of foreign nationality or resident status in the United States.

The IRS accepts several identification documents, including the following:

passport (to prove your identity and your resident status)
visa issued by the Department of State.
United States driver's license

Once you receive your ITIN, the IRS requires that you validate every five years. If you do not use your ITIN for three consecutive years, it will expire.

If you need to renew your ITIN, you must follow the same process as applying for a new ITIN. However, if you submit your renewal application by mail, you can simply send the Form W-7 with the supporting documents, without the need to attach a tax return.

Do I need an ITIN?

You do not have a Social Security number and are not eligible to obtain one.
You have an obligation to provide a federal tax identification number or file a federal tax return.
You fall into one of the following categories:
- You are a nonresident alien with a requirement to file a U.S. tax return.
- You are a resident alien in the United States (based on days of presence in the country) who files a U.S. tax return.
- You are the dependent or spouse of a U.S. citizen/resident alien.
- You are the dependent or spouse of a nonresident alien holding a visa.
- You are a nonresident alien claiming a tax treaty benefit.
- You are a 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.

Differences between SSN, ITIN, and EIN

SSN (Social Security Number):
TheSSNis a Social Security number assigned to U.S. citizens and permanent residents who work in the United States. This number is used primarily by the government to record a person's earned income and determine their eligibility to receive Social Security benefits. It is essential for any citizen or resident who works in the US.

ITIN (Individual Taxpayer Identification Number):
TheITIN is an Individual Taxpayer Identification Number issued by the IRS (Internal Revenue Service) for individuals who need to comply with tax obligations in the United States, but do not qualify for an SSN. This number is commonly used by non-resident aliens, resident aliens, their dependents, and spouses who are not eligible for an SSN.

EIN (Employer Identification Number):
TheEIN is an Employer Identification Number used to identify business entities in the United States. It is essential for businesses operating in the U.S., as it is used to report taxes, open business bank accounts, and hire employees. Unlike the SSN and ITIN, the EIN is designed exclusively for business purposes and not for individuals. More information on the EIN Number here

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