Business Entities

ITIN

An ITIN, or individual taxpayer identification number, is a tax processing number for certain individuals who need a US tax ID but are not eligible for a Social Security number.

Quick answer

An ITIN, or individual taxpayer identification number, is a tax processing number for certain individuals who need a US tax ID but are not eligible for a Social Security number.

It matters because some filings cannot be completed properly until the right taxpayer ID is in place.

A spouse or foreign individual with a filing requirement may need an ITIN to be included on a return.

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Plain-English Definition

What ITIN means

An ITIN, or individual taxpayer identification number, is a tax processing number for certain individuals who need a US tax ID but are not eligible for a Social Security number.

Why it matters It matters because some filings cannot be completed properly until the right taxpayer ID is in place.
Simple example A spouse or foreign individual with a filing requirement may need an ITIN to be included on a return.
Related Questions

Questions people ask about ITIN

What does ITIN mean?

An ITIN, or individual taxpayer identification number, is a tax processing number for certain individuals who need a US tax ID but are not eligible for a Social Security number.

Why does ITIN matter?

It matters because some filings cannot be completed properly until the right taxpayer ID is in place.

What is a simple example of ITIN?

A spouse or foreign individual with a filing requirement may need an ITIN to be included on a return.

When should I ask a CPA about ITIN?

Ask a CPA when the term affects how your business is taxed, how owners are paid, or whether an election could reduce tax.

How is ITIN different from EIN?

ITIN means An ITIN, or individual taxpayer identification number, is a tax processing number for certain individuals who need a US tax ID but are not eligible for a Social Security number. EIN means An EIN, or employer identification number, is the business tax ID issued by the IRS. The difference is that they apply to different tax, accounting, or business situations and should not be treated as interchangeable.

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