What is an ITIN used for?
The IRS issues an Individual Taxpayer Identification Number (ITIN) to foreign nationals and others who have federal tax reporting or filing requirements in the USA and do not qualify for a Social Security Number (SSN). This includes a non-resident alien individual not eligible for a SSN who is required to file a US tax return only to claim a refund of tax under the provisions of a US tax treaty.
The important thing to remember regarding ITINs is that Individuals must have a legitimate filing requirement and file a valid federal income tax return to receive an ITIN, unless they meet an exception.
If you do not have a SSN and are not eligible to obtain a SSN, but you have a requirement to furnish a federal tax identification number or file a federal income tax return, you must apply for an ITIN. If you have a SSN you will not need to apply nor would you be eligible for an ITIN.
There are several types of US tax matters that apply to potential USA Tax Rebate clients, as follows:
ITIN for reporting U.S. Property sales
You will require an ITIN number for tax reporting and the sale of the property plus any gains from the sale. If there is a Foreign Investment in Real Property Tax Act (FIRPTA) tax withholding from your property sale you should be able to claim all or part of that tax withholding back. You would need to apply for an ITIN so you can provide it to the IRS to receive your tax form 8288a. An ITIN number is required to work through this tax recovery process. You will not be able to complete this process without submitting an ITIN number application.
ITIN for reporting income received from US Property rentals
If you have a property manager for your US rental property you would generally receive a request from your property manager to provide an ITIN number for reporting your income and it will also allow your property agent to stop withholding tax from your US rental income.
You are required to file US tax returns to claim your US rental income and expenses. An ITIN number must be used to file a US tax return unless you already have a US SSN, then you would use your SSN.
1042-S / 1099 Income Reporting
You will require an ITIN number for reporting US withholding tax, which in some cases can be fully recovered. US withholding agents such as casinos, banks, financial brokerages, book publishers, etc. withhold tax from income sources such as gambling, royalties, dividends, US rental income, etc. Generally, they will request an ITIN number from you for the reporting of these types of income. Plus you can use your ITIN to claim tax treaty benefits.
ITIN to claim tax treaty benefits
Non-resident taxpayers from countries that have a tax treaty with the US can use an ITIN to claim tax treaty benefits to reduce the withholding amounts on income types covered under the US tax treaty.
Please refer to our other related articles in the sidebar to find out why you might need an ITIN, and if you qualify.
Or simply apply using our form and let USA Tax Rebate do all the work.
For those who need immediate assistance, please call 1-888-479-6850 (or +1-807-346-1608 from outside North America). We help you get an ITIN number. Apply online now!
We've offered ITIN Number services for USA Non Residents since 1979.
It is not unusual for self-prepared applications to be sent back multiple times.
We will take the time to understand your situation and apply under the correct procedure.