Getting an ITIN Number for Illegal Immigrants
Many of the 11 million immigrants who reside and work in the US pay taxes regardless of their immigration status. When citizens, born and naturalized, file their taxes each year, they use their Social Security numbers as a way for the IRS to identify them. But how do those immigrants who are not eligible for a Social Security number file taxes? They use an ITIN.
We'll explain how this tax ID for undocumented immigrants works, how to obtain one, and how immigrants of any status can build credit in the US.
What ITINs are used for
An ITIN (Individual Tax Identification Number) is a nine-digit number, similar to a Social Security number that the IRS uses to identify taxpayers who are not eligible for a Social Security number.
All wage earners who make over a certain amount of money each year are required to pay federal taxes regardless of their immigration status. The IRS began issuing ITINs in 1996, so those without Social Security numbers could comply with federal law and file their taxes each year.
ITINs can be useful for other things too even if a person does not work in the US. ITINs can be helpful when doing things like renting an apartment, opening a bank account, and accessing financial products like loans and credit cards. But ITINs do not allow the holder to work or reside legally in the US or make them eligible for Social Security benefits.
ITIN for immigrants
How can an illegal immigrant get an ITIN if they have no official status in the US? You don't need to have any particular immigration status in the US to apply for an ITIN, and the process is easy and straightforward.
Applicants simply fill out an IRS form W-7 and submit it to the IRS along with a completed tax return and something that verifies their identity and foreign status. The following documents are acceptable:
Passport
USCIS photo ID
Visa issued by the US State Department
US driver's license
US military ID card
Foreign driver's license
Foreign military ID card
National ID card
US state ID card
Foreign voter registration card
Civil birth certificate
Medical records (only valid for dependents under the age of 6)
School records (only valid for student dependents under the age of 18)
Once the application is approved by the IRS, the ITIN will be sent via mail to the applicant. From start to finish, the process takes between 7 and eleven weeks.
Building credit with Upwardli
There are a few things you can do after arriving in the US that can serve as the foundation of your new financial life. Open a bank account. A bank account allows you to easily and conveniently receive and send cash and is a safe place to keep your money. When you're ready to rent an apartment or buy a home or a vehicle, you'll need to provide bank statements to the potential landlord or lenders.
Apply for an ITIN for all of the reasons above, and when it comes time to apply for US citizenship, you want to be able to show that you've been a tax-paying member of society.
Start building your credit history. In most cases, any credit history you had in your home country will not follow you to the US. That means you're starting all over. Credit is important in the US personal finance system. Even if you don't use credit cards, preferring to pay for things in cash, most people will need to borrow money for things like buying a vehicle or home. A big part of what determines whether or not you'll be approved for a loan (or an apartment or credit card) is your credit score.
Upwardli can help new immigrants and anyone else build or improve their credit scores. Get pre-approved instantly with no credit check or deposit required. Each account includes an unsecured line of credit designed to build your credit fast as we report your progress to the credit bureaus.
Get your risk-free 30-day trial now and watch your credit grow! We have also created dozens of resources to help you learn about the US financial system, including how to rent an apartment, buy a car, understand your credit report, and much more!