While a Social Security Number (SSN) is the most common identifier requested for credit card applications in the U.S., individuals who do not have an SSN and are not eligible for one can often apply for a credit card using an Individual Taxpayer Identification Number (ITIN).
I. What is an ITIN?
- Issued By: The Internal Revenue Service (IRS).
- Purpose: An ITIN is a tax processing number issued to individuals who are required to have a U.S. taxpayer identification number but do not have, and are not eligible
for, an SSN. Its primary function is to facilitate compliance with U.S. tax laws and ensure efficient processing of tax returns. - Format: A nine-digit number structured similarly to an SSN (XXX-XX-XXXX).
- Limitations: An ITIN does not authorize work in the U.S., provide eligibility for Social Security benefits, or qualify a dependent for Earned Income Tax Credit purposes.
II. Do You Need an ITIN?
You generally need an ITIN if you do not have an SSN (and are not eligible to obtain one) and are required to furnish a federal tax identification number or file a federal tax return. Common scenarios include:
- Nonresident aliens required to file a U.S. tax return.
- U.S. resident aliens filing a U.S. tax return (who don't have an SSN).
- Dependents or spouses of U.S. citizens/resident aliens or nonresident alien visa holders.
- Nonresident aliens claiming a tax treaty benefit.
- Nonresident alien students, professors, or researchers filing a U.S.
tax return or claiming an exception to tax laws.
III. How to Apply for an ITIN
You apply for an ITIN by submitting Form W-7, Application for IRS Individual Taxpayer Identification Number, along with original or certified copies of identity and foreign status documents.
A. Application Methods:
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By Mail:
- Process: Mail Form W-7, your original federal income tax return (or documentation for an exception if you are not filing a return), and original or certified copies of your identity and foreign status documents to the IRS Austin Service Center.
- IRS Austin Service Center Address: Internal Revenue Service ITIN Operation P.O. Box 149342 Austin, TX 78714-9342
- Timeframe (ETA): You should typically receive your ITIN by mail within approximately 7 weeks if your application is complete and you qualify. During peak tax filing seasons, this timeframe may be longer.
- Document Return: Original documents are returned to the mailing address provided on your Form W-7. For faster return, you can include a pre-paid Express Mail or courier service envelope. If your documents are not returned within 14 weeks, you should contact the IRS.
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Through an IRS-authorized Certifying Acceptance Agent (CAA):
- Process: CAAs are individuals or entities authorized by the IRS to assist applicants with ITIN applications. A significant advantage of using a CAA is that they can verify your original documents (e.g., passport), eliminating the need for you to mail valuable original documents to the IRS.
- Cost (ETA): CAAs are private businesses and may charge a fee for their services, which can range from $50 to over $300, depending on the complexity of your application and the specific agent.
- Practical Tip: Search the IRS website for a list of authorized CAAs in your area.
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At a Designated IRS Taxpayer Assistance Center (TAC):
- Process: You can make an appointment at specific IRS TACs that offer ITIN application services. Applying in person at a TAC also allows you to avoid mailing your original identity documents.
- Cost: There is no direct fee from the IRS for the ITIN application when submitted at a TAC.
- Practical Tip: Check the IRS website for a list of TACs that provide ITIN application services and to schedule an appointment.
B. When to Apply:
- You should apply for an ITIN whenever you have a tax filing or reporting requirement in the U.S. It is generally most practical to complete Form W-7 concurrently with preparing your federal income tax return, ensuring you submit it by the tax return's due date to avoid potential interest and penalties.
C. Checking Status:
- You can check the status of your ITIN application by calling the IRS toll-free at 1-800-829-1040 (within the U.S.) or 1-267-941-1000 (for international callers, not toll-free). It is advisable to wait at least 7 weeks after submission before checking the status.
IV. ITIN Renewal and Updates
- Renewal: If your ITIN is used solely for information returns (e.g., 1099-INT), current IRS policy may not require immediate renewal. However, if you will need to use your ITIN for filing a U.S. federal tax return in the future, you will likely need to renew it at that time. The IRS generally notifies ITIN holders if their ITIN is approaching expiration. All Form W-7 applications, including renewals, generally require the inclusion of a U.S. federal tax return, unless you meet a specific exception.
- Change of Address: It is critical to notify the IRS immediately if your mailing address changes before you receive your ITIN. This ensures you receive all necessary notices and the return of your original documents. You can update your address with the IRS using Form 8822, Change of Address.
- Name Change: If your legal name changes (e.g., due to marriage, divorce, or a legal name change), you should send a letter to the IRS (to the same address where Form W-7 is submitted) explaining the circumstances. Include supporting documentation such as a marriage license, divorce decree, or court order.
V. Credit Card Issuers Accepting ITINs
While many credit card online applications are primarily designed for SSN input, several major credit card issuers do accept an ITIN in place of an SSN. It is important to confirm the specific policy of the issuer and the card you are interested in, as requirements can vary.
- American Express: Generally accepts an ITIN or SSN for applications.
- Bank of America: Often accepts an ITIN, a foreign passport, or other government-issued ID. However, some online applications may still require an SSN. Applying in person at a Bank of America branch might be a more straightforward option for ITIN holders.
- Citi: For certain credit cards, Citi may accept a copy of a passport, national ID card, or other valid government-issued ID. Often, an in-person application at a Citibank branch is required or highly recommended.
- Capital One: Generally accepts an ITIN or SSN for applications.
Practical Advice: If an online credit card application form only provides an SSN field and you only have an ITIN, it is highly recommended to call the credit card company's customer service line or visit a physical branch (if available) to inquire about their process for ITIN holders. Some issuers may require a paper application or specific verification steps.
VI. Building Credit with an ITIN
Even without an SSN, you can effectively build a credit history in the U.S. Credit bureaus primarily use your name, address, and birthdate to identify you and gather information about your financial activities. When you obtain a credit card or other forms of credit using your ITIN, your payment history and account activity will be reported to the major credit bureaus (Equifax, Experian, TransUnion). This enables you to establish a credit file and generate a credit score, which is crucial for future financial endeavors such as:
- Renting an apartment.
- Obtaining loans (e.g., auto loans, mortgages).
- Securing better interest rates.
- Even some employment opportunities.
VII. Accessing Your IRS Online Account with an ITIN
Taxpayers with an ITIN can register for an IRS online account, providing convenient access to a range of personal tax information and services.
A. Registration Process:
- Registering for an IRS online account with an ITIN requires a robust identity verification process. This often involves a video chat session with an IRS representative.
- You will need a valid email address.
- You must provide proof of your ITIN.
- You will also need to provide one primary identity document and one secondary identity document, at least one of which must clearly prove your current address.
B. Covered Services:
- Once successfully registered, your IRS online account allows you to access various services, including:
- Viewing your balance due.
- Reviewing your payment history.
- Setting up payment plans.
- Accessing your tax records (transcripts).
- Using services like "Get Transcript Online."
- Accessing the "Online Payment Agreement" tool.
- Obtaining an Identity Protection PIN (IP PIN).
- Utilizing the "Tax Pro Account" for tax professionals.
- Accessing e-Services.
- Submitting authorization forms like Forms 2848 (Power of Attorney) and 8821 (Tax Information Authorization) online.
Practical Tip: Be prepared for the identity verification process, as the IRS employs stringent measures to protect taxpayer data. Have your documents readily available for the video chat or in-person verification.