If you’re living in the U.S. without a Social Security number (SSN), you might find yourself in need of something called an ITIN. But what is an ITIN number and how can it help you? Whether you're working, filing taxes, or looking to access services like auto insurance, an ITIN may be important for navigating various systems in the U.S.
What is an ITIN Number?
An ITIN stands for Individual Taxpayer Identification Number. It’s a nine-digit number issued by the Internal Revenue Service (IRS), mainly for tax purposes. The ITIN may help individuals who aren’t eligible for a Social Security number (SSN) comply with U.S. tax filing laws.
People who need an ITIN often include non-residents of the U.S., spouses of U.S. residents who are undocumented, or students and professors from different countries that need to file for a tax return. If you're working in the U.S. but don’t have an SSN, an ITIN can help you file tax returns, receive refunds, and meet your legal obligations. ITIN numbers, though, are not valid as ID outside the tax system.
How to apply for an ITIN
If you’re looking to get an ITIN number, here’s a general guide that may help you through the application process:
- Complete IRS Form W-7: This form is the official application for an ITIN. You can find it on the IRS website. The form may ask for basic personal information and why you need an ITIN.
- Provide proof of identity: You’ll need to submit documents that verify your identity and foreign status. The application may want your passport, visa, or foreign driver’s license, but the IRS provides a list of acceptable documents on their website.
- Submit your application: You may be able to apply in a few different ways:
- By mail: Send your Form W-7 and documents to the IRS.
- In person: You can apply at an IRS Taxpayer Assistance Center.
- Through a certified acceptance agent: A CAA may be able to assist you in completing your W-7 form and submitting it but may cost a fee.
Be sure to check current instructions from the IRS website to help you understand how to complete your W-7 properly.
Benefits of having an ITIN
While the ITIN’s main purpose is related to taxes, it may open doors to a range of benefits. Here are a few of the key advantages:
- Access to financial services: Having an ITIN may make it easier for those without an SSN to open a bank account. It may be helpful if you’re looking to build credit or take out a loan, too. Even though it’s not the same as an SSN, some financial institutions accept ITINs which may help you manage your finances better.
- Filing taxes: An ITIN is necessary if you need to file a tax return but don’t have an SSN. Without one, you might be unable to file taxes, which can lead to fines or penalties. Plus, having an ITIN means you may potentially qualify for tax refunds.
ITIN and auto insurance
For individuals without an SSN, having an ITIN can help with purchasing car insurance. Insurance companies typically rely on an individual’s SSN to assess risk and verify identity, but if you don’t have one, an ITIN may be an acceptable alternative.
Using an ITIN for car insurance verification may make it possible for individuals without an SSN to drive legally while meeting state insurance requirements. Even if you're an undocumented or foreign driver, you may be able to get coverage for your car with an ITIN.
Infinity Insurance Agency, Inc. may be able to assist drivers without an SSN through the insurance process. IIA’s carriers accept ITINs as a form of identification, which can help drivers who need a car insurance policy. If you’re looking for an insurance quote, you can call IIA at 1-855-478-3705.
FAQs
ITIN v. SSN: What’s the difference?
An ITIN is for individuals who aren’t eligible for a Social Security number, usually because they’re non-residents of the United States or undocumented.
Do I need an ITIN to get a driver's license?
An ITIN isn’t always required to get a driver’s license. Certain states in the U.S. have pathways for undocumented people that may require proving residency through alternative documents. Check your state's laws or the DMV website to see what you need to get a driver’s license.
Can I use an ITIN to get auto insurance?
Depending on the insurance company, an ITIN may be acceptable for purchasing auto insurance.
How do I renew my ITIN?
If your ITIN is expired, you may be able to renew it by submitting a new Form W-7 to the IRS.