If you are not eligible to get a SSN number from the Social Security Administration but need to file your taxes, you can get an ITIN from the IRS. This applies to both legal residents and undocumented individuals.
At a January 21, 2024 Ethnic Media Services briefing on the ITIN and its benefits, the Office of Community Partnerships and Strategic Communications (OCPSC) from the California Governor’s Office of Planning and Research (OPR) elaborated on how having an ITIN could help California residents, both legal and the undocumented.
What is an ITIN?
ITIN is the Individual Taxpayer’s Identification Number issued by the Internal Revenue Service (IRS) to someone who does not have and is not eligible for a Social Security Number (SSN) but has a requirement to file taxes.
ITINs are issued irrespective of immigration status, because both residents and nonresident aliens (someone who does not have a green card nor has passed the substantial presence test; e.g. F and J category student visa holders, J category researchers, H1, H4, TN and O1 visa holders) may have a U.S. filing or reporting requirement under the Internal Revenue Code.
Who is eligible for an ITIN?
According to the IRS, you may be eligible, and should apply for an ITIN if you are a:
- Nonresident alien who is required to file a U.S. tax return
- U.S. resident alien who is (based on days present in the United States) filing a U.S. tax return
- Dependent or spouse of a U.S. citizen/resident alien
- Dependent or spouse of a nonresident alien visa holder
- Nonresident alien claiming a tax treaty benefit
- Nonresident alien student, professor or researcher filing a U.S. tax return or claiming an exception.
Benefits of an ITIN
Having an ITIN has several benefits. As an ITIN holder you can establish a financial history for yourself and your family, get a driver’s license, establish credit, get a bank account, start a business, or apply for a mortgage to purchase a home, among other things.
ITIN for undocumented Californians
Undocumented Californians can use the ITIN to establish a history of paying taxes which might help in the process of legalizing their status (where eligible) and to claim income tax returns. According to Yurina Melara, multiethnic press secretary of the OCPSC, “In 2020, California and Colorado became the first states to allow ITIN filers to claim their states’ earned income tax credit. This is facilitated so that more California residents are able to access vital tax credits and build financial security.”
Tax credits currently available
There are two State tax credits that are currently available to ITIN holders, the California Earned Income Tax Credits (CalEITC) and the Young Child Tax Credit (YCTC); both are cash back tax credits for low income working Californians. If the income of the taxpayer is less than $30,900, they may qualify for the CalEITC. Additionally, if they have a child five years or younger they may qualify for the YCTC. The Federal Child tax credit can be claimed through the year 2025 if the taxpayer has a child under five and no social security number. These are available to undocumented Californians as well.
Does the ITIN expire?
An individual’s ITIN would expire if it’s not been used for three years for filing a federal tax return. Once expired, the renewal process is the same as applying for a new ITIN.
What are the privacy protections for undocumented ITIN holders?
The most important question that comes up to social workers and advocates who assist the undocumented with ITIN filings is about privacy. Andrea, Senior Program Coordinator for Golden State Opportunity based in Sacramento, emphasizes, “It is important for people to know that the IRS does not share tax-payer information with any other government agency including immigration authorities. The ITIN is not related to a person’s immigration status, but if someone is working on establishing immigration status, then filing taxes is a great way to prove that someone has lived and worked in the US and been filing taxes. Also note that claiming tax credits does not and has never accounted as being public charge.”
What does the ITIN application process look like?
There are three ways of filing the ITIN application. Fill in the W7 form, and then,
- Mail all original documents to the IRS office in Austin Texas (all original documents required),
- In person with the IRS authorized Certified Acceptance Agents (there may be associated service fees of $400 to $500).
- In person with the IRS Taxpayer Assistance Center.
In general it takes about 4 to 6 weeks to get the ITIN number issued.
Assistance available from the Chinatown Service Center
Kerry Situ, Director of Programs, Chinatown Service Center, a Southern California based nonprofit that also helps individuals fill out the ITIN application, shared some situations where individuals needed an ITIN. “Sometimes, a resident or a citizen would come in with their non-resident spouse to file taxes. Here if the spouse is a non-resident alien and they wish to file joint returns, the spouse would need an ITIN.” Like in the case of a US citizen who came with his wife who was on a student visa; the couple were helped by the CSC.
In another case, a person of the age of 60 from China wanted to open a bank account and he came to the CSC for help with an ITIN because he was facing challenges getting a social security number. He was able to get his bank account with the ITIN.
Some important things to know about the ITIN
An ITIN does not:
- Authorize an individual to work in the U.S. It is not a work permit;
- Provide eligibility for Social Security benefits;
- Qualify a dependent for Earned Income Tax Credit Purposes.
For more information on tax credits, visit CALEITC4Me.org
For more information on ITIN filing, visit: immihelp.com
Read another India Currents story about ITIN here.