Description
An ITIN (Individual Taxpayer Identification Number) is a tax processing number issued by the Internal Revenue Service (IRS) for individuals who are required to have a U.S. taxpayer identification number but who do not have, and are not eligible to obtain, a Social Security Number (SSN) from the Social Security Administration (SSA). ITINs are used for federal tax purposes only, and are issued regardless of immigration status.
Examples of individuals who may need an ITIN include nonresident aliens, resident aliens, and dependents of U.S. citizens or resident aliens. An ITIN can be used to file taxes, claim credits, and/or make payments.
ITINs are formatted like SSNs, but with the prefix “9” and the middle two digits “78” or “79”.
An SSN is primarily used for the purpose of Social Security benefits and tracking an individual’s earnings for Social Security purposes. An ITIN, on the other hand, is used for tax-filing purposes and to identify taxpayers who are not eligible for an SSN, such as nonresident aliens.
Individuals may have both an SSN and an ITIN, but they are not the same thing and should not be used interchangeably.
ITIN can also be used by other foreign nationals and entities that have U.S. filing or reporting requirements, such as foreign corporations, partnerships, and estates.
ITIN holders may have difficulty opening a bank account in the United States, as most banks require a Social Security Number (SSN) or an Employer Identification Number (EIN) as a form of identification. However, some financial institutions may allow ITIN holders to open a bank account with their ITIN, particularly if the individual can provide additional identification documents.
It’s important to note that the process of opening bank account with ITIN varies from bank to bank. Some bank may require additional documentation like proof of address, or may have additional restrictions on certain types of accounts, such as account balance limits or transaction limitations. Also, since ITIN is not a proof of work authorisation, some bank may not offer checking account but allow saving account.
It’s recommended to check with a specific bank to understand the requirements and the process involved in opening a bank account with an ITIN.
