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When Does a Non-US Person Need an ITIN?

Majority of the tax filers ask about the instances when a person who does not belong to the USA requires the ITIN.

Most taxpayers usually relate the ITIN with the EIN. In fact, the ITIN - Individual Taxpayer Identification Number differs from EIN - Employer Identification Number in many ways. In general, the EIN is used for the organization’s tax purposes whereas the ITIN is used for individuals and in most cases termed equal to a Social Security Number (SSN). The native residents and citizens of the USA will get an SSN which entitles them to pursue jobs in the country.

The individuals who require a US taxpayers ID might need an ITIN. We have listed a few instances under which a non-US citizen needs an ITIN.

  • You are processing your business payments with credit cards
  • You have U.S. trade or business operations in the USA or effectively connected income in the USA
  • You have any sort of tax filing obligation in the economic market of the USA.
  • You are a dependent of a Non-US citizen or resident or doesn’t have the USA citizenship

The process of obtaining an ITIN is not that simple. So, it is always recommended to consult taxation experts before you embark the process of applying an ITIN.

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