What is a tax ID number in USA?
TIN or Tax Id Number in USA is a unique nine-digit number. This number is used by the IRS for the identification of the taxpayer. However, it is required on your tax return and request in other IRS interactions.
SSN or Social Security Number is one of the most popular tax ID numbers. While, the other four kinds of tax ID numbers in USA are ITIN, EIN, ATIN, and PTIN.
In case, you are an employer and you need to know about your EIN number. For that, you need to file an EIN (Employer Identification Number). EIN can be issued to any legal entity, depending on its business structure. The IRS is responsible for issuing this number to Sole Proprietors, Partnerships, and Corporations.
Note: Any entity that needs an EIN in addition to its SSN, one functions as your individual number and the other as your number as an employer.
ITIN:
An ITIN or Individual Taxpayer Identification Number (Tax Id Number in USA) is a tax processing number. This number is issued by the IRS (Internal Revenue Service) to an entity that needs to file taxes. If one entity is not eligible to have an SSN (Social Security Number) from the Social Security Administration.
In order to apply for an ITIN(Tax Id Number in USA), one must have to submit a Form W-7. This form is an application for IRS ITIN with a U.S tax return.
ITIN Number Holder pay Taxes:
- Any individual who is holding an ITIN number(Taxpayer Id Number in USA) is not eligible for all the tax benefits. On the Contrary, some public benefits that United States citizens and other taxpayers can receive.
- Here is an example: anyone who is holding ITIN is not eligible for Social Security benefits. However, if that individual becomes eligible for SSN in the future, the earnings reported with an ITIN can be counted as the amount one is eligible to receive.
Other Purposes of Tax ID Number in USA:
- Any individual who does not have an SSN but has an ITIN may be able to open interest-bearing accounts.
- In the United States of America, some states allowed the ITIN number to be used instead of SSN.
- Moreover, this number can be used to receive a driver’s license, driver’s permit, or state identification card.
- It may provide proof of residency. However, an immigrant needs to prove how an individual has been in the United States can tax return filed using an ITIN(Taxpayer Id Number in USA).
How to Get a Tax ID Number in USA?
One of the most important questions that come to everyone’s mind while starting for tax return. This question can be: What is my TIN(Taxpayer Id Number in USA) or Where can I find one? Obviously, the above section has clarified TIN (Taxpayer Id Number in USA). Later we will discuss where you can get one?
In most cases, your TIN (Taxpayer Id Number in USA) will have been issued by the SSA (Social Security Administration). Moreover, this depends on what tax id number is required for your tax return. Social Security Administration is responsible for SSN (Social Security Number) and the Internal Revenue System is responsible for issuing ITIN(Tax Id Number in USA).
However, by knowing about this, you don’t need to look for mail from the SSA. Your number will come to you by the IRS. You may see your TIN(Tax Id Number in USA) on a variety of documents, including tax returns, and any other form that is filed with the IRS.
SSN:
Many new business owners have no idea about SSN. An SSN stands for Social Security Number it is a nine-digit number that is issued by the government.
These numbers are issued to individuals by the IRS in the U.S. As a result, it requires permanent residency or temporary aliens working in the country.
If you are not a citizen of the United States, in that case, you need to fill a form online or by hand to issue a social security number.
EIN:
EIN stands for Employer Identification Number. It is a unique identification number. This number is issued by the company or organization. It can be used for the identification purpose of any employee who needs to file a tax return.
To get an EIN or Employer Identification Number, you must have SSN or ITIN number(Tax Id number in USA). However, EIN is only difficult for a non-resident of the U.S. To obtain some wonder how to get EIN without having SSN. Get Quote for Tax Id Number in USA.