Learn About Getting an Individual Tax Identification Number

What Is an Individual Tax Identification Number (ITIN)?

An Individual Tax Identification Number, commonly called an ITIN, is a nine-digit tax processing number issued by the Internal Revenue Service (IRS). The number follows the same format as a Social Security Number (SSN): XXX-XX-XXXX. The IRS created the ITIN system in 1996 to identify individuals for tax purposes who are not eligible for a Social Security Number.

The ITIN functions as a taxpayer identification tool. It allows individuals to file tax returns, open certain bank accounts, and meet tax obligations with the federal government. While an ITIN serves similar purposes to an SSN for tax filing, the two numbers are distinct. An SSN is issued by the Social Security Administration and conveys work authorization and eligibility for Social Security benefits. An ITIN is issued only by the IRS and has no connection to work authorization or benefit programs.

According to IRS data, roughly 16 million ITINs are currently in active use across the United States. The IRS issues approximately 500,000 to 600,000 new ITINs each year. These numbers are held by foreign nationals, visa holders, and other individuals who have a U.S. tax filing requirement but cannot obtain an SSN.

An ITIN can remain valid indefinitely if the holder continues to file federal income taxes as required. However, the IRS has implemented a policy where ITINs may become invalid if no tax return is filed for three consecutive years. Understanding what an ITIN is and how it differs from other identification numbers is the first step toward understanding the broader tax identification landscape.

Practical Takeaway: An ITIN is a nine-digit number issued by the IRS for tax purposes only. It is not a work permit, does not grant immigration status, and does not provide access to government benefits. It exists solely as a tax identification tool.

Who Might Need an ITIN?

Several categories of people may have a reason to obtain an ITIN. The primary group includes nonresident aliens with U.S. source income who must file a federal tax return. This includes foreign nationals who work in the United States on temporary visas, such as H-1B, L-1, O-1, and other visa categories. These individuals earn wages subject to U.S. taxation and must report their income to the IRS.

Resident aliens—foreign nationals who have established permanent residency or meet the substantial presence test for tax purposes—also commonly obtain ITINs. Under U.S. tax law, resident aliens are taxed on their worldwide income, similar to U.S. citizens. Even if a resident alien has been granted a Social Security Number, they may have had an ITIN previously or may be establishing their tax identification for the first time.

Spouses of U.S. citizens and green card holders may obtain an ITIN if they are not themselves citizens or green card holders. Married couples filing jointly often need both members to have a taxpayer identification number. One spouse may have an ITIN while the other has an SSN.

Dependent children of foreign nationals living in the United States may need an ITIN to be claimed as dependents on a tax return. Parents cannot claim a dependent without providing a valid taxpayer identification number for that dependent. Additionally, some children born abroad to U.S. citizen parents may be issued an ITIN for tax purposes before becoming U.S. citizens.

Self-employed individuals from other countries conducting business in the United States—such as contractors, consultants, or freelancers—typically obtain an ITIN to report their business income and pay self-employment taxes. Non-U.S. citizens with investment income, rental property income, or other U.S. source income also fall into this category.

Practical Takeaway: ITINs are issued to foreign nationals with U.S. tax obligations, nonresident aliens earning U.S. source income, visa holders, and other individuals ineligible for Social Security Numbers who need to file taxes or be claimed as dependents.

The ITIN Application and Verification Process

The process to obtain an ITIN involves completing IRS Form W-7, titled "Application for IRS Individual Identification Number." This form must be completed in English and submitted to the IRS along with required supporting documents. The form itself is straightforward and guides applicants through basic information collection: full name, date of birth, country of citizenship, mailing address, and reason for requesting an ITIN.

Supporting documentation is critical to the ITIN process. The IRS requires applicants to submit original documents or certified copies that verify identity and foreign status. Acceptable identity documents include a passport, national identity card, visa, or driver's license. Documents must be unexpired or expired no more than one year, with rare exceptions. The IRS will not accept photocopies unless they are certified by the issuing agency or an authorized representative.

The IRS categorizes document submission methods into three pathways. The traditional method involves mailing Form W-7 with original documents to the appropriate IRS office based on applicant location. The second method allows applicants to submit documents through an IRS Acceptance Agent—a trained professional at participating libraries, community centers, and tax preparation organizations who can verify documents in person. The third method uses the IRS Video Identity Verification process for certain applicants, where verification occurs through a secure video conference.

Processing time for ITIN applications typically ranges from 4 to 6 weeks when submitted by mail, though it can extend to 8 weeks during peak tax season. Applications submitted through Acceptance Agents may be processed more quickly. The IRS will send a notice in the mail with the ITIN number once approval is granted. The applicant receives a document called an "ITIN Assignment Notice" that confirms the number and can be used for immediate tax filing purposes.

Rejected applications are common, particularly when supporting documents are incorrect, expired, or illegible. Common reasons for rejection include submitting unsigned forms, providing expired identification, failing to include required documents, or submitting documents in languages other than English without certified translations. The IRS will issue a letter explaining why the application was rejected and what additional information or corrected documents are needed.

Practical Takeaway: Obtaining an ITIN requires completing Form W-7 with verified identity documents through an IRS-approved submission method. Processing takes 4 to 8 weeks, and applicants should ensure documents are current, in English, and complete to avoid rejection.

Using an ITIN for Tax Filing and Financial Purposes

Once an individual receives an ITIN, they can use it to file federal income tax returns. The ITIN is entered in the taxpayer identification number field on forms like the 1040-NR (U.S. Nonresident Alien Income Tax Return) or the 1040 (U.S. Individual Income Tax Return), depending on the applicant's residency status and filing requirements. The ITIN functions identically to an SSN in most tax filing contexts—it identifies the taxpayer, connects their tax return to their account, and allows the IRS to track filing history and payment records.

ITIN holders can claim dependents on their tax returns, though those dependents must also have a valid ITIN or SSN. This is relevant for families where parents are foreign nationals and their children may or may not be U.S. citizens. The ITIN allows such families to take standard and itemized deductions, claim the Child Tax Credit, and other tax credits that lower their overall tax liability.

Beyond tax filing, ITIN holders can use this number for certain financial and banking purposes. Many banks in the United States now recognize ITINs as valid taxpayer identification numbers and will open checking and savings accounts for ITIN holders. This represents an important shift—for many years, banks would not open accounts without an SSN, effectively excluding ITIN holders from the formal banking system. Today, major banks and credit unions increasingly market accounts specifically to ITIN holders, recognizing this population's financial needs.

ITIN holders may also use their number to open investment accounts, apply for credit products, and obtain credit reports. However, the ITIN is not sufficient for all financial transactions. Some services—such as certain mortgages, auto loans, and credit cards—may still require an SSN or may apply different lending standards to ITIN holders. Lenders often view ITINs as higher-risk identifiers since they offer no ability to verify employment history