What is an ITIN? What to know about ITINs, application and renewal

If you’re new to taxes in the U.S., you might be questioning the meaning of ITIN or related acronyms. ITIN stands for Individual Taxpayer Identification Number.  An ITIN follows a nine-digit format—like this: XXX-XX-XXXX. ITINs can be easily identified because they always begin with the number 9.

The Internal Revenue Service (IRS) issues Individual Taxpayer Identification Numbers (ITINs) to people who need to file taxes, but don’t qualify for Social Security numbers (SSNs). The IRS will also issue ITINs to dependents who can be claimed on a tax return, but who don’t qualify for Social Security numbers.

What is an ITIN used for?

ITINs allow taxpayers to stay in compliance with United States tax law. In some cases (such as claiming some dependent-connected tax benefits or filing jointly with a spouse), ITIN numbers allow a taxpayer to benefit from tax rules that apply to all filers and not only to those with a Social Security number.

What does an IRS ITIN number not do?

Having an ITIN does not change your immigration status. You are required to meet government requirements to receive your ITIN. ITINs also don’t qualify you for Social Security benefits or the Earned Income Tax Credit (EITC).

ITINS also do not provide work authorization in the U.S. and ITINs cannot be used as identification for any purpose outside the U.S. federal tax system.

Who’s eligible for an ITIN? When might it be needed?

Taxpayers who are U.S. residents or nonresidents of the U.S. can apply for an ITIN number regardless of immigration status. Spouses and dependents of a taxpayer may only be eligible for ITINs if they can be claimed for an allowable tax benefit or to file their own tax return.

Here are some situations where an ITIN may be necessary:

• Any nonresident that has a U.S. source of income needs an ITIN from the IRS to file their United States tax return, as required by law.
• If someone is in the U.S. on a temporary visa (for example, a L-1 intracompany transferee executive or manager visa) and their spouse accompanies them to the U.S., the spouse will need an ITIN in order for the couple to file a joint resident return in the U.S.
• A U.S. resident (based on the substantial presence test in the U.S.) who doesn’t qualify for a Social Security number will need an ITIN to fulfill their U.S. tax reporting requirements.

ITINs and tax benefit considerations

Taxpayers with an ITIN may be restricted from claiming some tax benefits. Review a few common tax credits below to understand what can and cannot be claimed.

• Earned Income Tax Credit (EITC)  – Taxpayers filing taxes with an ITIN cannot claim the EITC as it requires a valid SSN*. Similarly, any children with an ITIN instead of a Social Security number can’t be taken into account when an otherwise qualified individual claims the credit. In the case of spouses, if either spouse has an ITIN the couple is ineligible for the EITC.
• Child Tax Credit (CTC) – ITIN filers with a dependent child with an SSN* may be eligible to claim the Child Tax Credit if they meet all the CTC requirements.
• Credit for Other Dependents – ITIN filers can claim this credit for a dependent who has an ITIN* and is a U.S. resident.  Taxpayer can claim the ODC for a dependent who meets all the rules to be a qualifying child for the CTC except for the SSN requirement.

*Qualifying children must have a tax identification number (either an SSN or an ITIN) by the due date of the tax return (including extensions) to be eligible to claim these credits.

Getting an ITIN number and ITIN renewal

ITIN application rules generally require an ITIN applicant to mail their passport and/or other qualifying documents that prove their citizenship and identification to the IRS.

Individuals who are not dependents and who use a Certified Acceptance Agent (CAA) can apply for an ITIN and retain their original documents (they do not have to mail their passports and other original documents to the IRS).

Other benefits of using a CAA can take some additional stress out of the process. This includes:

• Help completing your W-7 form, Application for IRS Individual Taxpayer Identification Number. They can verify your identity and review the required documentation, for completeness and accuracy.
• Sending a certified copy of your documents to the IRS, helping to take away some of the fear of offering personal information and data to someone you don’t know, especially through the mail.
• Providing assistance with responding to the IRS if the IRS needs more information to process the ITIN application.
• Services provided in the applicant’s preferred language (such as Spanish).
• Aid from an expert who understands taxes and the ITIN application process.

A Certified Acceptance Agent can be the helping hand needed to start the ITIN Application process.

ITIN Renewal

If you’re already an ITIN holder, your number will expire under certain circumstances, prompting the need for an ITIN renewal. You will need to renew if:

• your ITIN isn’t used on a federal tax return for any 3 consecutive tax years. It will expire on December 31 after the third tax year of non-use.
• the middle digits (the fourth and fifth positions) are “70,” “71,” “72,” “73,” “74,” “75,” “76,” “77,” “78,” “79,” “80,” “81,” “82,” “83,” “84,” “85,” “86,” “87,” or “88″ and you haven’t already renewed your ITIN.
• the middle digits are “90,” “91,” “92,” “94,” “95,” “96,” “97,” “98,” or “99” if assigned before 2013 and you haven’t already renewed your ITIN.

If you do not renew your ITIN and file a U.S. tax return using an expired ITIN, there may be a delay in processing your tax return. If your ITIN is not renewed by the return due date certain tax benefits may also be denied. The IRS will send you a notice asking you to renew your ITIN.

Next steps to submit your ITIN application or renewal

In addition to visiting an H&R Block office for help with ITIN application and renewal, there are three methods taxpayers can use to submit their W-7 application package:

1. Mail your W-7 form and original identification documents or copies of the documents certified as an exact copy by the issuing agency to the IRS address on the Form W-7 Instructions. (Identification documents will usually be returned within 6-11 weeks).
2. Use one of the many IRS authorized Acceptance Agents or Certified Acceptance Agents around the country.
3. Call to make an appointment at an IRS Taxpayer Assistance Center. 

Affected taxpayers must use the most current version of the Form W-7 and check the box that says “Renewal.” Refer to the Form W-7 and ITIN renewal instructions for guidance.

Get help with your taxes and ITIN at H&R Block

Wondering if there’s an H&R Block ITIN application fee?  If you need to apply or renew your ITIN, you can get a free ITIN application with your federal tax return at participating H&R Block locations.