Understanding Form W-7: Your Gateway to Getting an ITIN
Individuals in the United States of America not eligible for the Social Security Number but need to comply with the tax obligations, obtaining an Individual Tax Identification Number ITIN is important. ITIN is issued by the IRS allowing such individuals facilitate tax filing and processing.
To obtain an ITIN number, individuals need to complete the Form W-7. The form is also known as the ‘application for IRS Individual Taxpayer Identification’ and is used to apply for an ITIN.The ITIN number is a nine-digit number issued to individuals including non-residents, resident aliens, dependents and spouses of US citizens or resident aliens, seeking to file a tax return but do not qualify for the social security number.
An individual will need for file Form W-7 if they are-
- A non-resident alien required to file a US tax return
- A Dependent or Spouse of a US citizen or resident alien.
- Non-Resident alien claiming tax treaty benefit.
- Resident alien filing a US tax return according to the number of days they have lived in the US.
- Foreign National receiving taxable scholarships, grants or fellowship income.
The documents required while submitting the Form W-7 are-
- Passport
- National Identification Card (including photo, name and address).
- US or Foreign Driver’s License.
- Birth Certificate (for dependents).
The Original documents or certified copies issued by the issuing agency must be attached with the form unless the application is done through a Certified Acceptance Agent.
Procedure to complete Form W-7
- Download Form W-7 from the IRS website.
- Provide accurate details like name, foreign address, US address and the reasons for applying for an ITIN.
- Attach the Supporting documents that establish your identity and foreign status.
- Mail the completed form along with tax return and supporting documents to the IRS. If tax return is not filed, the applicant will have to include documentation to substantiate their need for an ITIN.
What are the benefits of getting an ITIN?
- ITIN allows the individual to meet your US tax filing obligations.
- It enables the person to claim the refunds if eligible.
- The applicant can avail the benefits of tax treaties between the United States of America and their home country.
Form W-7 is an important tool to fulfill tax responsibilities in the US. By proper filling or Form W-7 and following the correct steps to complete the Form, one can ensure a smooth and hassle-free application process. When planning to fill Form W-7, it is advisable to consult the professional tax expert who will help you navigate the process with ease.
