Having a Taxpayer Identification Number also known as TIN is one of the crucial parts of the US tax filing process. Whether that would be a Social Security number (SSN) or an Individual Taxpayer Identification Number (ITIN), one's tax return will not be processed by the US tax authorities without it.
Why should you apply for an ITIN:
If you're ineligible to apply for an SSN, you'd have to apply for an ITIN instead;
Without an ITIN, you can’t get any refund you’re owed;
Having an ITIN can help you claim certain credits, like the Child Tax Credit;
Filing taxes with an ITIN shows you’ve complied with the relevant US tax laws, which can be beneficial in future immigration processes;
Some banks and credit unions let you open accounts using an ITIN instead of an SSN;
It can also be used for certain loans or mortgages;
To summarize, an ITIN is your key to being tax-compliant and financially recognized in the US, even if you don’t have a Social Security Number.
In case you're required to file a US income tax return and you're ineligible to apply for an SSN, you would have to apply for an ITIN and that is where the Sprintax software comes in! Once you start filling out your Sprintax application, on Step 2 Getting to know you, sub-step About you, you will come across a question that asks if you have an ITIN/SSN:
Once you indicate that you do not posses an ITIN or an SSN you will be offered the chance for the Sprintax software to prepare an ITIN application. The moment you fill out the rest of the questionnaire in your account and finalize your application, you will receive your tax return(s) + your ITIN application. A PDF file per each tax return and a PDF file for your ITIN application will be available for you to download. Each PDF file will contain thorough instructions on how to file the papers and where to send them to. It's always recommended that you read the instructions carefully and ensure that you're attaching all the required documents to your tax filing!
There are two options available when applying for an ITIN:
1. Apply in person at your local IRS office with the below documents in hand:
Your 1040-NR Federal tax return form;
Your ITIN application form;
Original passport;
2. Mail the application to the IRS. For that, you'll need:
Your 1040-NR Federal tax return form;
Your ITIN application form;
The original passport of each applicant included in the application. If you prefer not to mail your original passport, you can attach a certified copy of each applicants' passport.
NOTE: The 1st option is generally the easiest of the two. However, if you're perhaps out of the US and you cannot apply in person with an IRS employee, you'd have to mail your ITIN application instead. We do not recommend mailing your original passport, instead we recommend that you attach a certified copy.
Keep in mind that If including a photocopy, it MUST be certified by one of the following:
The governmental department that issued the identification document;
The United States Embassy or Consulate (make a reservation before visit);
Certified Acceptance Agent - IRS official;
An apostle or other forms of certification, including US or domestic notary public will be rejected by the IRS.
NOTE: If you choose the mailing option and you are attaching your original passport to your application, you should be aware that there is a minimum processing time of 6 weeks.
IMPORTANT: If you do not attach the supporting documents (certified or originals) and your 1040-NR tax return, your ITIN application will be rejected by the IRS.
Additionally, if you're required to file a State tax return also, keep in mind that most State Tax Offices will not process your State tax return without a valid taxpayer ID (SSN/ITIN). In case you have determined that you might owe money to the State tax office you should check the States’ government website for more information about their next steps. Each US state has its own rules how to deal if the taxpayer does not have tax number.
It's also worth noting that the deadline for filing your 1040-NR Federal return and State income tax return is applied only if you owe money to the tax office. This means that you have to file your return and pay your liability by or on April 15 to meet the deadline, even if the return is received later on. If you are due a refund, have 0 balance, you're filing only Form 8843, FICA claim or a 1040-X Amended Federal tax return, there is no penalty for filing after April 15th.