Temporary Tax ID Number (ITIN) Explained
Published June 30, 2009 @ 08:08PM PT
Immigration Impact has written your one-stop ITIN post. For the uninitiated, ITIN stands for Temporary Tax ID Number. If you are an immigrant in need of a way to pay taxes without a social security number OR if you are in need of a handy fact sheet to combat anti-immigrant falsehoods, then this post and fact sheet (pdf) are for you. A sample:
- Although many use ITINs to file their federal tax forms, ITIN holders are not eligible to receive most of the benefits their tax dollars go toward. For example, an ITIN cannot be used to get Social Security benefits or the Earned Income Tax Credit (EITC).
- An ITIN does not grant anyone legal status or work authorization.
- An ITIN cannot be used in lieu of an SSN on the I-9 work authorization form.
- An ITIN cannot be used to prove legal status.
And here is the IRS ITIN page, with the W-7 Form itself (pdf).
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Comments (19)
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David is an attorney in Philadelphia, PA, where he helps immigrants to the U.S. navigate the complex immigration legal system. Views he expresses at change.org are his alone and don't represent the views or opinions of his employer, Nationalities Service Center. The information contained on this site is intended for educational and advocacy purposes only.
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Our system sure does hurt the person mostly when they want to come forward and fill out a form to pay their taxes even though they know that they are not receiving benefits back from paying taxes.
Our IRS is suppose to keep a persons documents private and unfortunately by allowing these documents to be used only hurts all of us. People then became too fearful to report and pay into out tax system.
Posted by Mary Pranzatelli on 06/30/2009 @ 09:32PM PT
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This is but a half truth topic.
They are not eligible for "certain credits" as described above, however they are entitled to deductions, exemptions, and some credits which in turn do result in receiving more from a tax return than they had paid in through their taxes.
See publication 501 and 519 US Tax guide.
Pub. 519
Nonresident Aliens
You can claim some of the same credits that resident aliens can claim. You can also report certain taxes you paid, are considered to have paid, or that were withheld from your income.
Credits
Credits are allowed only if you receive effectively connected income. You may be able to claim some of the following credits.
Foreign tax credit. If you receive foreign source income that is effectively connected with a trade or business in the United States, you can claim a credit for any income taxes paid or accrued to any foreign country or U.S. possession on that income. If you do not have foreign source income effectively connected with a U.S. trade or business, you cannot claim credits against your U.S. tax for taxes paid or accrued to a foreign country or U.S. possession. You cannot take any credit for taxes imposed by a foreign country or U.S. possession on your U.S. source income if those taxes were imposed only because you are a citizen or resident of the foreign country or possession. If you claim a foreign tax credit, you generally will have to attach to your return a Form 1116. See Publication 514 for more information. Child and dependent care credit. You may qualify for this credit if you pay someone to care for your qualifying child who is under age 13, or your disabled dependent or disabled spouse, so that you can work or look for work. Generally, you must be able to claim an exemption for your dependent. Married nonresident aliens can claim the credit only if they choose to file a joint return with a U.S. citizen or resident spouse as discussed chapter 1, or if they qualify as certain married individuals living apart (see Joint Return Test in Publication 503). The amount of your child and dependent care expense that qualifies for the credit in any tax year cannot be more than your earned income from the United States for that tax year. Earned income generally means wages, salaries, and professional fees for personal services performed. For more information, get Publication 503. Education credits. If you are a nonresident alien for any part of the year, you generally cannot claim the education credits. However, if you are married and choose to file a joint return with a U.S. citizen or resident spouse as discussed in chapter 1, you may be eligible for these credits. Retirement savings contributions credit. You may qualify for this credit (also known as the saver's credit) if you made eligible contributions to an employer-sponsored retirement plan or to an individual retirement arrangement (IRA) in 2008. You cannot claim this credit if:
You were born after January 1, 1991,
You were a full-time student,
Your exemption is claimed by someone else on his or her 2008 tax return, or
Your adjusted gross income is more than $26,500.
Use Form 8880 to figure the credit. For more information, see Publication 590. Child tax credit. You may be able to take this credit if you have a qualifying child. A qualifying child for purposes of the child tax credit is a child who:
Was under age 17 at the end of 2008.
Is your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, or a descendant of any of them (for example, your grandchild, niece, or nephew).
Is a U.S. citizen, a U.S. national, or a resident alien.
Did not provide over half of his or her own support for 2008.
Lived with you more than half of 2008. Temporary absences, such as for school, vacation, or medical care, count as time lived in the home.
Posted by Liquids Reign on 06/30/2009 @ 09:59PM PT
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they are entitled to deductions, exemptions, and some credits which in turn do result in receiving more from a tax return than they had paid in through their taxes.
What you pasted does not prove your bolded assertion above. Hence we have no way to evaluate the truth of your assertion based on what you've provided.
Posted by Dave Bennion on 07/01/2009 @ 04:36AM PT
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Well the bold end tag I put in didn't work. We'll see if all subsequent comments are bolded and then we'll be having a very stern and forceful conversation :)
Posted by Dave Bennion on 07/01/2009 @ 04:42AM PT
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I didn't bolden that, you did, don't blame me.
You are correct about what you boldened though, "do" actually should have been "can".
Posted by Liquids Reign on 07/01/2009 @ 06:04AM PT
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Yes, my end tag didn't work, my fault. Didn't say you did it. Didn't transmit to later comments as it sometimes does.
Even the modified version:
They are not eligible for "certain credits" as described above, however they are entitled to deductions, exemptions, and some credits which in turn *can* result in receiving more from a tax return than they had paid in through their taxes.
is still not supported by what you've pasted above. Perhaps it's true, I don't know--doesn't make much sense--but we still can't evaluate the truth of your assertion based on what you've provided.
Posted by Dave Bennion on 07/01/2009 @ 06:05PM PT
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We'll see if all subsequent comments are bolded and then we'll be having a very stern and forceful conversation :)
Sure seems like a projection of fault towards me, as the "very stern and forceful conversation" was directed at me.
I also directed you to Publication 501. Now, if you really want to get technical about the ITIN number, unless the person using it owns a business or is self employed, legally they can not use it in order to pay their taxes. And as a business owner they would owe business taxes, as an self employed person, they would be considered as an Independent Contractor, for which they would be required to have a 1099 from said main conatractors.
Posted by Liquids Reign on 07/01/2009 @ 07:04PM PT
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You misconstrued what I said. Moving on.
Undocumented workers use an ITIN to pay taxes all the time. The IRS would rather have the tax dollars than not. Payment of taxes is routinely considered as a favorable equity in cancellation of removal cases and other discretionary relief in removal proceedings. So that's DHS/DOJ in favor of using an ITIN to pay. Most U.S. citizens would rather that undocumented immigrants be paying taxes than not. It's only the warped logic of restrictionism that says that using an ITIN to pay taxes is a bad thing.
Also, you directing me to Publ. 501 doesn't address my earlier problem with your assertion. I've still not seen evidence that someone can get back in a refund more than they paid in taxes.
Posted by Dave Bennion on 07/01/2009 @ 07:33PM PT
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Undocumented workers use an ITIN to pay taxes all the time.
Sorry, Dave, but what you are stating can not be supported by what you have shown, due to lack of evidence. You have not proven they "pay" taxes. An ITIN only shows they have "filed" tax papers.
Posted by Liquids Reign on 07/02/2009 @ 07:35AM PT
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unless the person using it owns a business or is self employed, legally they can not use it in order to pay their taxes
I left that very confusing... the person using the ITIN must be a business owner or be self-employed, illegal aliens can not legally use it in order to pay thier taxes if they are working for someone else, they themselves must be a business owner or an Independent Contractor, for which they would receive a 1099-misc at the end of the year from the main contractors of whom they worked for.
Posted by Liquids Reign on 07/01/2009 @ 07:07PM PT
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I suggest Dave, instead of deleting my stance in regards to Mary, you had also better remove her accusations and assumptions in accusing me of something I have not done. I know you don't like that I am here, however you should be a little more even handed when it comes to these false accusations and assumptions which result in SLANDER. I also suggest you take it up with Mary and inform her that her situation is in dire straights with me. I expect and demand a PUBLIC APOLOGY.
Posted by Liquids Reign on 07/01/2009 @ 08:16PM PT
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Stop googling my name, stop posting comments using my name on other websites. If you went and checked out that website than obviously you keep googling information on me. Please, leave me alone.
I do not know you...all I know is that you have used my name on your own personal website. I called the main headquarters of that website and that account with my name posted on it is a privately owned account so I ask you one question. Since you have a reputation of following woman around on the internet...how what anyone have a way to know how far you would take it.
I am not blaming you but I want you to not use my name without my permission anywhere.
Posted by Mary Pranzatelli on 07/01/2009 @ 08:36PM PT
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I have followed nobody around on any web site lat-alone you. What reputation is it I have?? Again you are assuming with no proof of anything. I have responded only to your points in your comments, you have gone beyond that towards me.
Now you have apologised for the slander and I have accepted, I now suggest you either discuss the points made in comments in regards to these topics and drop the accusations and assumptions of and towrds me.
Posted by Liquids Reign on 07/01/2009 @ 09:20PM PT
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OK, lets drop it...anyway Im OK now. It was really freaky to see that when I googled my name and well...Liquiod if you were a girl you would have a panick attack over that too.
So let me see what the topic was.
Posted by Mary Pranzatelli on 07/01/2009 @ 09:28PM PT
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OK, Liquid Hmmm I guess if I were to comment on that topic all I have to say is if I was an undocumented person I would avoid filling any paperwork.
I think that the IRS should keep the paperwork private because if the undocumented came forward and paid taxes it does benefit us.
Posted by Mary Pranzatelli on 07/01/2009 @ 09:31PM PT
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Mary Spagetti? If that's a real name, then I am not Wire Palladin.
Posted by Wire Paladin on 07/01/2009 @ 09:57PM PT
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No Wire...lol...its not my real name. Someone took my comments and name and put them on a porn website. Someones private account and I do not know who did it...so for a few weeks I'm going to be Mary Spagetti.
I will change back when I am over my post tramatic stress. I am a little shell shocked over it.
Well its change.org so I'm changing for a little while.
Posted by Mary Pranzatelli on 07/01/2009 @ 10:21PM PT
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No Wire...lol...its not my real name. Someone took my comments and name and put them on a porn website. Someones private account and I do not know who did it...so for a few weeks I'm going to be Mary Spagetti.
I will change back when I am over my post tramatic stress. I am a little shell shocked over it.
Well its change.org so I'm changing for a little while.
Posted by Mary Pranzatelli on 07/01/2009 @ 10:21PM PT
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Im not too happy about it though Wire....I figured if I had to pick a name that wasn't mine I would pick something that most people like.
Posted by Mary Pranzatelli on 07/01/2009 @ 10:24PM PT
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