A US taxpayer identification number, or TIN, is a nine-digit number the federal government uses to track your tax activity, and the IRS requires one on every return you file, every statement reporting your income, and any document where you claim treaty benefits or exemptions.1Internal Revenue Service. Taxpayer Identification Numbers (TIN) Which TIN you need depends on who you are: US citizens and work-authorized residents use a Social Security Number (SSN), foreign nationals with US tax obligations who can’t get an SSN use an Individual Taxpayer Identification Number (ITIN), and businesses and other entities use an Employer Identification Number (EIN).
The Three TINs and Who Each One Is For
The SSN is issued by the Social Security Administration to US citizens, permanent residents, and certain noncitizens authorized to work.2Social Security Administration. Request a Social Security Number for the First Time It follows the format XXX-XX-XXXX and functions as your primary tax and government identifier.
The ITIN is issued by the IRS to people who owe US taxes but aren’t eligible for an SSN. That includes nonresident aliens with US-source income, resident aliens without work authorization, and dependents or spouses claimed for tax benefits who can’t get an SSN.3Internal Revenue Service. Individual Taxpayer Identification Number An ITIN always starts with the digit 9 (9XX-XX-XXXX). It exists purely for tax filing: it does not authorize you to work in the US and does not qualify you for Social Security benefits or the Earned Income Tax Credit.4Internal Revenue Service. Topic No. 857, Individual Taxpayer Identification Number (ITIN)
The EIN is the business version. The IRS issues EINs in the format XX-XXXXXXX to corporations, partnerships, multi-member LLCs, trusts, estates, nonprofits, and any business with employees.5Internal Revenue Service. Publication 1635 – Understanding Your EIN
Two narrower numbers exist for specific situations: an Adoption Taxpayer Identification Number (ATIN) is a temporary number for a child in a pending domestic adoption when the adopting parents can’t yet get the child an SSN,6Internal Revenue Service. Adoption Taxpayer Identification Number and a Preparer Tax Identification Number (PTIN) is required for anyone who prepares federal tax returns for compensation.7Internal Revenue Service. Frequently Asked Questions: Do I Need a PTIN?
How to Get a Social Security Number
You’re eligible for an SSN if you’re a US citizen (born domestically or abroad), a lawful permanent resident, or a noncitizen with Department of Homeland Security authorization to work.8Social Security Administration. Social Security Handbook – Obtaining a Social Security Card Noncitizens attending school or with a valid nonwork reason may also qualify in certain situations.2Social Security Administration. Request a Social Security Number for the First Time
You apply on Form SS-5, “Application for a Social Security Card,” and submit original documents (or issuing-agency certified copies) proving your age, identity, and citizenship or immigration status.9Social Security Administration. Application for a Social Security Card (Form SS-5) Citizens typically use a US birth certificate or passport. Noncitizens need a current DHS document such as a Permanent Resident Card (I-551), an Arrival/Departure Record (I-94), or an Employment Authorization Document (I-766).10Social Security Administration. What Documents You Need for a Social Security Card
Most people apply in person at a local SSA office so an agent can verify the originals. Citizens applying from abroad can route documents through a US Embassy or Consulate. Once the SSA has everything it needs, you’ll generally receive your card within 7 to 10 business days, though mail-in applications can take two to four weeks because of the time needed to return your documents.11Social Security Administration. How Long Will It Take to Get a Social Security Card?
How to Get an ITIN
Apply for an ITIN using IRS Form W-7, “Application for IRS Individual Taxpayer Identification Number.”12Internal Revenue Service. About Form W-7, Application for IRS Individual Taxpayer Identification Number In most cases you must attach a completed federal tax return to the W-7 to show why you need the number. Two exceptions let you skip the attached return: if you’re claiming tax treaty benefits on passive or other covered income, or if your ITIN is only needed because a third party is reporting payments to you on information returns.13Internal Revenue Service. Instructions for Form W-7
You’ll need to include original identity documents, such as a passport, or copies certified by the issuing agency. The IRS specifically rejects documents certified by a foreign notary or bearing an apostille.14Internal Revenue Service. ITIN Documentation Frequently Asked Questions
You have three ways to submit the W-7 package. Mail it to the IRS ITIN Operation at P.O. Box 149342, Austin, TX 78714-9342.13Internal Revenue Service. Instructions for Form W-7 Apply in person at a designated IRS Taxpayer Assistance Center. Or use a Certified Acceptance Agent (CAA), an IRS-authorized professional who reviews and authenticates your original identity documents, returns them to you immediately instead of making you mail them to Austin, and submits the application on your behalf.15Internal Revenue Service. ITIN Acceptance Agents CAA fees typically range from $50 to several hundred dollars depending on the provider and whether they also prepare your tax return.
ITIN Expiration and Renewal
An ITIN doesn’t last forever. If you don’t use yours on a federal tax return for three consecutive years, it expires automatically.16Internal Revenue Service. Its Time Again for Folks to Renew Their ITINs An ITIN that only appears on information returns like a Form 1099 still counts as unused for this rule.
Filing with an expired ITIN won’t stop the IRS from accepting your return, but it will delay any refund until you renew, and certain credits may be temporarily denied. To renew, file the same Form W-7 used for the original application, check the “Renew an existing ITIN” box, and provide identity documentation again. If you later receive an SSN, don’t renew the ITIN. Notify the IRS so it can merge your records.17Internal Revenue Service. How to Renew an ITIN
How to Get an EIN
You need an EIN if your entity is a corporation, partnership, or multi-member LLC, or if it has employees, or if it’s a trust, estate, or most nonprofits filing Form 990.18Internal Revenue Service. Get an Employer Identification Number A single-member LLC with no employees that isn’t taxed as a corporation can usually operate under the owner’s SSN or ITIN instead.
The application is Form SS-4. You’ll identify the entity type, its primary business activity, and a “responsible party,” an individual who controls the entity’s funds and assets.19Internal Revenue Service. Instructions for Form SS-4
If your business is based in the US and the responsible party has a valid SSN or ITIN, the IRS online application issues an EIN immediately at no cost.20Internal Revenue Service. Employer Identification Number International applicants, or anyone whose responsible party lacks a US TIN, must submit the SS-4 by fax, mail, or phone; phone applications are available only to international applicants, and fax and mail processing takes several weeks.19Internal Revenue Service. Instructions for Form SS-4
One limit to know: the IRS caps EIN issuance at one per responsible party per day, regardless of method.21Internal Revenue Service. Instructions for Form SS-4 (PDF) If you’re setting up multiple entities, plan around that.
Which Tax Credits Your TIN Type Lets You Claim
The type of TIN you hold directly affects which tax benefits you can claim, and this is where people lose real money by not understanding the rules.
The Earned Income Tax Credit requires a valid SSN. If you file with an ITIN, you cannot claim the EITC at all, and any qualifying children you list also need SSNs valid for employment.4Internal Revenue Service. Topic No. 857, Individual Taxpayer Identification Number (ITIN)
The Child Tax Credit has a similar gate. Both the taxpayer (or spouse, if filing jointly) and each qualifying child must have an SSN valid for employment that was issued before the return’s due date.22Internal Revenue Service. Child Tax Credit A child with only an ITIN won’t qualify. This catches families off guard, especially those who recently transitioned from ITIN to SSN status and aren’t sure which number applies for a given tax year.
What Happens Without a Valid TIN
Failing to provide a correct TIN triggers real financial consequences. When you can’t furnish a valid TIN to a payer such as a bank, broker, or client paying you as a contractor, that payer is generally required to withhold 24% of the payment and send it to the IRS.23Internal Revenue Service. Topic No. 307, Backup Withholding This backup withholding applies to interest, dividends, rents, royalties, independent contractor payments, broker proceeds, and several other payment types. You can recover the withheld money by claiming it as a credit when you file, but your cash is locked up until then.
The IRS can also impose a $50 penalty for each failure to include a correct TIN on a return, statement, or other required document.24eCFR. 26 CFR 301.6723-1 – Failure to Comply With Other Information Reporting Requirements For a business filing hundreds of 1099s with missing or incorrect TINs, the total adds up quickly. The penalty can be waived if you show reasonable cause for the failure.