As a non resident why do we need an ITIN ?

What is ITIN?

An ITIN Number  is a unique nine-digit tax processing number issued by the Internal Revenue Service (IRS) to individuals who are required to have a U.S. taxpayer identification number but aren’t eligible for an SSN. , were introduced to ensure that individuals, regardless of their immigration status, can comply with U.S. tax laws and fulfill their tax obligations.

Who need’s ITIN?

1. Non-residents:

   Individuals who are not US citizen or permanent resident but have US tax obligations. Such as those who are earning income in United States of America.

2. Dependents:
   

   Non-resident alien dependents may need an ITIN to be claimed on a U.S. tax return.

3. Spouses:

   
   Spouses of U.S. citizens or residents may need an Individual Taxpayer Identification Number to file a joint tax return or claim certain tax benefits.

4. Foreign investors:

5. Non-residents who are investors in United States may need Individual Taxpayer Identification Number to open their bank accounts, obtain mortgages and to report income from these investments.

6. Business owners:

   Non-resident aliens operating a business in the United States, or owning property here, often need an ITIN for tax purposes.

   Why is ITIN important?

   Individual Taxpayer Identification Number is important for several reason:

1. Tax Compliance:

   Those individuals who don’t have SSN can file their tax through their ITIN without an Individual Taxpayer Identification Number, they cannot report their income, file tax returns, or meet their tax responsibilities.

2. Legal requirements:

   if you are earning in USA it’s a legal requirements to have an ITIN to report in IRS for your tax filing if you don’t have ITIN then the individual will face legal consequences.

3. Access to tax benefits:

   Individual Taxpayer Identification Number holders may be eligible for certain tax benefits, such as the Child Tax Credit or the American Opportunity Credit, which can help reduce their tax liability.

4. Financial Transactions:

   Some financial institutions and businesses may require Individual Taxpayer Identification Number for opening bank accounts, securing loans and conducting other financial transitions.

Individual Taxpayer Identification Number is for those individuals who are not qualified for SSN but need to fulfill their tax obligations in USA. Non-resident of USA can also file tax by obtaining ITIN.
For more info connect with Jorofy’s experts support for clear guidance and get your Individual Taxpayer Identification Number.