An ITIN, or Individual Taxpayer Identification Number, is a tax processing number only available for certain United States non-resident and resident aliens, their spouses, and dependents who are not eligible for a Social Security Number (SSN). It is a nine-digit number issued by the IRS to taxpayers so they can comply with the U.S. tax laws. Taxpayers use their ITINs to file their tax returns, pay any taxes owed, and claim those tax benefits to which they are entitled under the law. The tax professionals at Orlando, Florida based CPA Accounting & Tax Services outlines the top 3 advantages of having an ITIN number.
1. You Can File Your Taxes Electronically: Now, more than ever, filing your taxes electronically is the fastest and safest way to file a return, get your refund or pay your tax bill in a timely manner. Most taxpayers without an ITIN are prohibited from filing electronically, causing unnecessary extreme delays in many cases.
2. You Can Claim Certain Tax Credits: Many ITIN taxpayers have children with social security numbers who are eligible for the Child Tax Credit but must wait an extended period during the pandemic to receive this much needed money for their children. While Congress has introduced measures recognizing the urgency for parents to receive these payments timely, there are still delays. The same goes for taxpayers with a social security number who need to file jointly with a spouse who needs an ITIN. They will also have to wait extended periods to receive a stimulus payment if they did not initially receive the Economic Impact Payments and will need to claim the Recovery Rebate Credit on their paper returns.
3. You Can Now Qualify to Receive PPP Funds: Non-U.S. Citizens now have more access to Payroll Protection Program (PPP) funds that they were unable to qualify for previously. The new changes would allow U.S. residents to use their Individual Taxpayer Identification Number (ITINs) and allow Green Card holders and individuals in the U.S. on a Visa to apply for PPP relief. Read more about this in our March blog: PPP Round 2 Changes To Benefit Smaller Sized Businesses, Self- Employed and Sole Proprietors
If you need an ITIN number, we can help navigate you through the complexities of the application process. Contact the professionals at CPA Accounting & Tax Services to help guide you through tax season and beyond. We specialize in Business Accounting Services, Individual Tax Services, Tax Preparation, International Tax Services, Tax Planning and Tax Resolution Services. We have offices in Orlando, Florida and service clients worldwide. Find out how we can serve all of your accounting needs by contacting us today.