| ITINs are issued regardless of immigration status because both resident and nonresident aliens may have a U.S. filing or reporting requirement under the Internal Revenue Code. Individuals must have a filing requirement and file a valid federal income tax return to receive an ITIN, unless they meet an exception. |
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An ITIN does not authorize work in the U.S., doesn’t change the immigration status, nor provides eligibility for Social Security benefits or the Earned Income Tax Credit.
A non-resident alien individual not eligible for a SSN who is required to file a U.S. tax return only to claim a refund of tax under the provisions of a U.S. tax treaty needs an ITIN.
All ITINs not used on a federal tax return at least once in the last three years will no longer be valid for use on a tax return as of Jan. 1, 2018. Additionally, all ITINs issued before 2013 will begin expiring this year, starting with those with middle digits of 70, 71, 72, 78 , 79, 80 (Example: (9XX-78-XXXX).
All expired ITINs must be renewed before being used on a U.S. tax return. No action is needed by ITIN holders who don’t need to file a tax return next year.
If you need to file a tax return in 2019 and your ITIN has expired or will expire before you file in 2019, IRS recommends you submit your renewal application now to prevent potential delays in the processing of your return. If you use an expired ITIN on a U.S. tax return, it will be processed and treated as timely filed, but without any exemptions and/or credits claimed and no refund will be paid at that time. You will receive a notice explaining the delay in any refund and that the ITIN has expired.
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ITIN holders are not eligible for all of the tax benefits and public benefits that U.S. citizens and other taxpayers can receive. For example, an ITIN holder is not eligible for Social Security benefits or the Earned Income Tax Credit (EITC). However, if that person becomes eligible for Social Security in the future (for example, by becoming a lawful permanent resident), the earnings reported with an ITIN may be counted toward the amount he or she is eligible to receive.
Some ITIN holders are eligible for the Child Tax Credit (CTC). According to the new tax bill passed in December 2017, the CTC tax credit may be worth as much as $2,000 per qualifying child, depending upon the applicant’s income. Because ITIN holders are eligible for the CTC, over 4 million U.S. citizen children benefit from the tax credit, however if a child does not have a SSN they are no longer eligible for the tax credit. |
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| Other purposes that an ITIN can serve include: |
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Opening an interest-bearing bank account. Individuals who do not have a SNN but do have an ITIN can open interest-bearing accounts.
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Securing a driver’s license. Some states have allowed the ITIN to be used instead of a SSN in order to receive a driver’s license, driver’s permit, or state identification card.
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Providing proof of residency. At some point in the future an immigrant may need to prove how long he or she has been in the United States and having a tax return filed using an ITIN is one way to show that.
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The ITIN is not an immigration-enforcement tool. The application process is designed to facilitate tax payment, and the fact the IRS does not share applicants’ private information with immigration enforcement agencies is key to tax compliance. Section 6103 of the Internal
Revenue Code states that the IRS is not authorized to release taxpayer information to other government agencies except for providing information to the Treasury Department for investigations that pertain to tax administration, or under a court order related to a non-tax criminal investigation. Expanding information-sharing beyond this would require a new law—an issue that arises often during legislative debates.
As always, do not hesitate to ask for help from a tax professional in all your dealings with the IRS. |
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