5 things you need to know about ITIN number

If you are a US citizen, you must have heard about a term an ITIN (Individual Tax Identification Number). It is important for everyone living and working in US to be aware of every important information about Taxpayer ID Number. It is a tax processing number given to people by Internal Revenue Service (IRS) ensuring that people pay their taxes on time, despite not having a Social Security Number. In more simple words, it is federal government’s tax collecting system without which it is not possible to generate revenue from people. The program was introduced in 1996 by the IRS, to ensure that even foreign nationals and people not eligible for the SSN (Social Security Number) can pay the taxes.

It is important to keep in mind that ITIN is not SSN, as many people confused both of the terms. To identify an ITIN, remember that it is a nine-digit number starts from the digit 9 with digit 7 or 8 in fourth digit.  Moreover, people who do not possess lawful status are also eligible to obtain ITIN number.

Individuals who need an ITIN:

People who can file income tax return but are not eligible for Social Security Number, need to have ITIN. This case includes unauthorized immigrants, their spouses as well as their dependents. They will need an ITIN in order to ask for a return of their taxes. for example, you can apply for ITIN for each of your dependent for their tax return. This way you can minimize the amount you owe to the government in terms of taxes.

It becomes easy to pay taxes:

If you have an ITIN, it becomes easy for you and your family to pay taxes more conveniently. As per the law of the U.S., you have to pay taxes whether you are authorized to work or not. So, it is easy for untheorized people to pay taxes and avoid legal difficulties.

It is possible to get a driving license through ITIN:

Apart from other financial benefits, you can also get driving license through your ITIN. But in order to avail this benefit, your state should allow undocumented immigrants. So, it is better to check whether ITIN is needed or not, before you apply for license.

It can be used to get credit cards and open bank account:

Although, the purpose of having an ITIN is to pay taxes and to apply for tax return, it is not used to apply for bank account. But there are few financial institutions which offer this flexibility to use this number for bank account opening and application for credit cards and savings. So, it is beneficial in other financial matters if you have an ITIN.

It is helpful in obtaining legal residency:

In order to apply for legal residency in the U.S., you have to show the number of years you have been living in U.S. if you have an ITIN number, you can prove to immigration department that how many years you have lived and paid taxes according to law.