Filing taxes as a foreigner

Whats an Individual Tax Identification Number (ITIN)?

In today’s global economy, business ventures increasingly reach overseas to leverage the established business operations and processes in new markets. Every year, more and more people decide to bring their business to the United States. If these individuals are not U.S. citizens, they are still required to file taxes with the Internal Revenue Service (IRS). The IRS issues an Individual Tax Identification Number (ITIN) to foreign individuals so they may file taxes with the IRS. Foreigners who are ineligible to receive a Social Security Number (SSN) receive an Individual Tax Identification Number. ITINs play a critical role in a foreign nationals ability to file taxes. The IRS has issued over 21 million individual tax identifications numbers since the program began in 1996.

Do I need an Individual Tax Identification Number (ITIN)?

foreign individuals receive ITINs regardless of their immigration status. ITINs serve no purpose other than taxes. An ITIN does not allow foreign individuals to work in the United States.

You should apply for an ITIN if you cannot obtain a Social Security number. If you are a foreign individual, dependent, or spouse of a foreign individual required to file a tax return with the IRS, you should apply for an ITIN. If you are a non-U.S. resident claiming a tax treaty benefit, or an international student, professor or researcher filing a U.S. tax return or requesting an exception, you should apply for an Individual Tax Identification Number.

Does an ITIN expire?

Yes. If you are planning on filing a tax return in 2018 and your Individual Tax Identification Number has or will expire before you’ve filed, the IRS recommends you submit your renewal application now. do not use an expired ITIN when you file your tax return. If you file a tax return with an expired ITIN, the IRS will process your taxes, but you will not receive any exemptions, credits claimed, and you will receive no refund.

For help with U.S. taxes for foreign taxpayers, assistance with tax planning and more, contact Boyer Law Firm.

 

 

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