ITIN vs. SSN – When Should You Use Each?
When dealing with taxes, banking, or employment in the U.S., you may need either an Individual Taxpayer Identification Number (ITIN) or a Social Security Number (SSN). While both serve as taxpayer identification numbers, they have distinct purposes and eligibility requirements. Understanding the differences between ITIN and SSN will help you determine which one you need.
What is an ITIN?
An Individual Taxpayer Identification Number (ITIN) is a nine-digit number issued by the Internal Revenue Service (IRS) to individuals who need to file U.S. taxes but are not eligible for a Social Security Number (SSN).
Who Needs an ITIN?
- Non-U.S. residents with U.S. tax obligations.
- Foreign investors in U.S. businesses or real estate.
- Dependents or spouses of U.S. citizens/residents who don’t qualify for an SSN.
- Self-employed individuals earning U.S. income but ineligible for an SSN.
- International students who need to file tax returns.
What Can You Do with an ITIN?
- File U.S. tax returns as required by the IRS.
- Open a U.S. bank account (at select institutions).
- Claim certain tax benefits (if eligible).
- Conduct financial transactions in the U.S.
What is an SSN?
A Social Security Number (SSN) is a unique identifier issued by the Social Security Administration (SSA) to U.S. citizens, permanent residents, and some work-authorized non-citizens.
Who Needs an SSN?
- U.S. citizens and permanent residents.
- Non-U.S. citizens with work authorization in the U.S.
- Individuals applying for Social Security benefits.
What Can You Do with an SSN?
- Work legally in the U.S.
- Pay into Social Security benefits for retirement, disability, or survivor benefits.
- Apply for credit cards, loans, and mortgages.
- Claim tax benefits that require an SSN (e.g., Earned Income Tax Credit).
- Open bank accounts and establish credit history.
Key Differences Between ITIN and SSN
| Feature | ITIN | SSN |
| Issuing Agency | IRS | Social Security Administration (SSA) |
| Purpose | Tax filing for non-SSN-eligible individuals | Identification & employment authorization |
| Work Authorization | ❌ Not valid for work | ✅ Required for employment |
| Social Security Benefits | ❌ Not eligible | ✅ Eligible |
| Validity | Expires if not used for 3 consecutive years | Lifetime validity (unless revoked) |
When Should You Use ITIN or SSN?
- Use ITIN if: You need to file taxes but do not qualify for an SSN.
- Use SSN if: You are eligible for employment or government benefits in the U.S.
How TAXtical LLC Can Help You with ITIN Applications
At TAXtical LLC, we specialize in helping individuals obtain their ITINs quickly and hassle-free. As an IRS Certified Acceptance Agent (CAA), we offer:
✅ Identity document verification – No need to mail originals to the IRS.
✅ Faster processing & reduced rejections.
✅ Expert guidance on ITIN applications and renewals.
✅ Personalized tax compliance solutions.
Get Your ITIN with TAXtical LLC Today!
If you need an ITIN for tax compliance or financial purposes, let TAXtical LLC simplify the process for you.
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