ITIN stands for Individual Taxpayer Identification Number. The IRS issues Individual Taxpayer Identification Numbers (ITINs) to people who need to file taxes, but who do not qualify for social security numbers.
Here are some highlights of eligibility:
- Any nonresident that has a U.S. source of income would need an ITIN from the IRS to file their United States tax return, as required by law. This means that a Canadian citizen, who lives in Canada, but has rental property in the United States, must file a tax return, using an ITIN, to report their rental income and expenses on a nonresident tax return.
- If someone is in the U.S. on a temporary visa (like a L-1 intracompany transfer visa) and their spouse accompanies them to the country, 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 days of 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 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), ITINs allow a taxpayer to benefit from tax rules that apply to all filers and not only to those with an SSN.