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The full abbreviation of ITIN is the Individual Taxpayer Identification Number. In this article, we will go through who should process it? And how one can process for ITIN in California? Even though, it is not a direct ticket to legal status in the United States. However, it is a good practice if you comply with your tax obligation at the federal level.
ITIN is proof of your moral character as it is reviewed by the NILC (National Immigration Law Center). Also, it is a tool that allowed the IRS (Internal Revenue Service) to raise a huge amount of dollars. Otherwise, you would not have entered the federal budget.
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What is the ITIN?
Another purpose of ITIN is that it can be used as an identifier. This unique number is assigned by the Internal Revenue Service. An ITIN is for tax processing applications to those individuals who are not migrant aliens. Also, it is for those U.S citizens who have not to qualify for an SSN (Social Security Number).
The Internal Revenue Service defines this Individual Taxpayer Identification Number as a tax processing number issued to individuals who are eligible as U.S taxpayers. Also, this number is issued to those who do not meet the requirement for an SSN from the SSA (Social Security Administration).
Who should process an ITIN?
The Personal Taxpayer Identification Number can process by non-Citizens with illegal status. Any individual who does not have legal status in the United States wants to be up to date with the payment of taxes.
While other residents who have legal status in the United State who are not eligible for an SSN may get an ITIN. Also, this number can use as payment of their taxes.
The AIC (American Immigration Council) has made it clear for people who can obtain Individual Taxpayer Identification Number and who cannot:
- Those temporary residents who engage in trade in the United States.
- Students and academic staff as non-residents filing U.S tax returns.
- Spouses of the United States Citizens.
- Dependents of foreigners as non-resident aliens.
What is the ITIN for?
We discussed earlier that an ITIN is a unique number. It serves as an ID to pay federal taxes to IRS (Internal Revenue Service). Other than that, it does not serve any purpose. However, the ITIN depends on the state where you have a commercial link in. Following are its other secondary purposes:
- It is a method that allows access to banking services in the United States. Also, an ITIN number helps you to open a bank account and access credit cards.
- In some states, an individual may obtain a driver’s license based on an ITIN.
- Also, it allows you to display what you complying with federal taxes.
- Furthermore, an ITIN can use as an indicator of good moral character. Also, it can use as support for federal tax returns. In some cases, you may need to document an employer’s physical presence in the United States.
While other residents who have legal status in the United State who are not eligible for an SSN may get an ITIN. Also, this number can use as payment of their taxes.
