Review the following ITIN topics for more information.
What is an ITIN?
Publication 1915 explains –
"An ITIN is a tax processing number, issued by the Internal Revenue Service, for certain resident and nonresident aliens, their spouses, and their dependents. It is a nine-digit number beginning with the number “9”, has a range of numbers from "50" to "65", "70" to "88", “90” to “92” and “94” to “99” for the fourth and fifth digits and is formatted like a SSN (i.e. 9XX-7X-XXXX).
The ITIN is only available to individuals who are required to have a
taxpayer identification number for tax purposes but who do not
have, and are not eligible to obtain a SSN from the Social Security
Administration (SSA). Only individuals who have a valid filing
requirement or are filing a U.S. Federal income tax return to claim a
refund of over-withheld tax are eligible to receive an ITIN.
ITINs are issued regardless of immigration status because both resident and nonresident aliens may have a U.S. filing or reporting requirement under the Internal Revenue Code. Individuals must have a filing requirement and file a valid federal income tax return to receive an ITIN, unless they meet an exception.
ITINs are used for tax purposes only, and are not intended to serve any other purpose. IRS issues ITINs to help individuals comply with the U.S. tax laws, and to provide a means to efficiently process and account for tax returns and payments for those not eligible for Social Security Numbers.
- Does not authorize work in the U.S. or provide eligibility for Social
- Security Benefits or the Earned Income Tax Credit.
- Is not valid for identification outside of the tax system.
- Does not change immigration status
Examples of who needs an ITIN:
- A nonresident alien individual eligible to obtain the benefit of a reduced tax withholding rate under an income tax treaty.
- A nonresident alien individual not eligible for a SSN who is required to file a U.S. Federal income tax return or who is filing a U.S. tax return only to claim a refund.
- A nonresident/resident alien individual not eligible for a SSN who elects to file a joint U.S. Federal income tax return with a spouse who is a U.S. citizen or resident.
- A U.S. resident alien (based on the substantial presence test) who files a U.S. Federal income tax return but who is not eligible for a SSN.
- An alien spouse, claimed as an exemption on a U.S. Federal income tax return, who is not eligible to obtain a SSN.
- An alien individual eligible to be claimed as a dependent on a U.S. Federal income tax return but who is not eligible to obtain a SSN.
- A nonresident alien student, professor, or researcher who is required to file a U.S. Federal income tax return but who is not eligible for a SSN.
Also see: General ITIN Information
Note: Per Publication 17, page 13: You cannot e-file a return using an ITIN in the calendar year the ITIN is issued; however, you can e-file returns in the following years.
Who Needs to Renew
- Each year, certain ITIN holders are required to renew their numbers. The numbers that are set to expire are listed in Publication 1915 for that year.
When to Renew
- Taxpayers whose ITINs are scheduled to expire may renew their ITIN immediately. You don’t have to wait for IRS to send a notice of expiration if your fourth and fifth digits have been identified for expiration by IRS. You should allow 7 weeks from the mailing date of the Form W-7, for the IRS to notify you of your ITIN application status (9 to 11 weeks if you submit the application during peak processing periods (January 15 through April 30) or if you’re filing from overseas).
- Federal tax returns that are submitted in 20YY with an expired ITIN will be processed. However, certain tax credits and any exemptions will be disallowed. Taxpayers will receive a notice in the mail advising them of the change to their tax return and their need to renew their ITIN. Once the ITIN is renewed, applicable credits and exemptions will be restored, and any refunds will be issued. See IRS News Release IR-2020-181 for more information.
How to Renew in Drake Tax
- Open Drake Tax.
- Type "W7" in the selector field or click W7 from the Foreign tab.
- Select T/S in the drop list or enter the number of the Dependent for whom the renewal application is needed.
- Check the box Renew an existing ITIN.
- Complete the remainder of the screen as applicable.
- If additional screens are needed for other members of the household, press Page Down for a new screen.
- The completed Form(s) W-7 show in View.
- Print and mail the W-7 form, the tax return (as applicable) and any required documentation to:
Internal Revenue Service
P.O. Box 149342
Austin, TX 78714-9342
- A completed Form W-7, Application for IRS Individual Taxpayer Identification Number.
- You can complete a Form W-7 within Drake Tax by going to the Foreign tab > W7 ITIN Application/Renewal screen (located on the Other Forms tab in Drake15 and prior).
- Form W-7 is not an e-filable form.
- Taxpayers submitting a Form W-7 to renew their ITIN are not required to attach a federal tax return. However, taxpayers must still note a reason for needing an ITIN on the Form W-7. See the Form W-7 instructions for detailed information.
- Spouses and dependents only need to renew their ITIN if filing an individual tax return, or if they qualify for an allowable tax benefit (e.g., a dependent parent who qualifies the primary taxpayer to claim head of household filing status). In these instances, a federal return must be attached to the Form W-7 renewal application.
- Proof of foreign status and identity; per Revised Application Standards of ITIN:
- Passport (Note: A passport is the only document that proves both identity and foreign status. For dependents, the passport must have a date of entry to be a stand-alone document, unless the dependent is from Military Overseas. If a passport is submitted, a combination of two or more documents must be submitted to meet the document requirements.)
- National ID card (must show photo, name, current address, date of birth and expiration)
- U.S. driver's license
- Civil birth certificate (required for dependents under 18)
- Foreign driver's license
- U.S. state ID card
- Foreign voter's registration card
- U.S. military ID card
- Foreign military ID card
- U.S. Citizenship and Immigration Services (USCIS) photo identification
- Medical records (only dependents under 6)
- School records (dependents under 14, or under 18 if a student)
Only originals of identification documents or certified copies of the documents from the issuing agency will be accepted.
- Dependent requirements- If choosing to renew the entire family at once. The passport is no longer accepted as a stand-alone identification document for dependents if the passport does not have a date of entry, unless the dependent is Military Overseas. Applicants will be required to submit (along with the passport) either:
- U.S. medical records for dependents under age 6, or
- U.S. school records for dependents under age 18
- U.S. school records for dependents age 18 and over or
- Rental Statement listing the Applicant’s Name and U.S. Address or
- Utility Bill listing the Applicant’s Name and U.S. Address or
- Bank Statement with Applicant’s Name and U.S. Address
Failure to renew your ITIN before filing a tax return can delay certain credits or timely refunds.
For more information about ITINs, Renewals, and initial W-7 Applications, see IRS ITIN Expiration FAQs, IRS How do I renew my ITIN?, and Related Links below.