Frequently asked questions
1. What is an ITIN?
An Individual Taxpayer Identification Number (ITIN) is one type of Taxpayer Identification Number (TIN) issued by the Internal Revenue Service (IRS).
In the U.S., the IRS uses different types of TINs to track tax obligations:
SSN (Social Security Number): Issued by the Social Security Administration, mainly for U.S. citizens and individuals authorized to work in the U.S.
EIN (Employer Identification Number): Issued to businesses, trusts, and estates for tax reporting.
ITIN (Individual Taxpayer Identification Number): Issued to individuals who need to comply with U.S. tax laws but are not eligible for an SSN.
Key facts about ITIN:
It is a nine-digit number that always begins with “9” (format: 9XX-XX-XXXX).
It is used only for tax processing and reporting to the IRS.
It does not authorize work in the U.S. or provide Social Security benefits.
The ITIN ensures that foreign nationals, nonresident aliens, dependents, and others who cannot get an SSN can still file taxes, receive income, or be properly identified for U.S. tax purposes.
2. Who needs an ITIN?
You may need an ITIN in several situations:
A. For U.S. Tax Filing Purposes
You are a nonresident alien required to file a U.S. tax return.
You are a U.S. resident alien (based on days of presence) filing a U.S. tax return.
You are a dependent or spouse of a U.S. citizen/resident alien etc.
B. For Non-Tax Purposes (other common uses)
Even if you don’t have a current filing requirement, an ITIN may be required for:
Opening a U.S. bank account if you are not eligible for an SSN.
Receiving U.S. investment income (e.g., interest, dividends, rental income) where tax withholding applies.
Claiming tax treaty benefits to reduce U.S. withholding tax on income.
Buying or selling U.S. real estate (ITIN is needed for FIRPTA withholding).
Filing informational returns with the IRS (e.g., being listed as a partner/shareholder in a U.S. business).
Mortgage reporting (some lenders require ITIN for home loans).
State tax filings (many states require ITIN if you cannot get an SSN).
3. What documents are required for ITIN application?
When applying for an ITIN, you must provide proof of identity and foreign status. The IRS accepts only certain documents, and these must be either:
Originals, or
Certified copies verified by a Certified Acceptance Agent (CAA) or the original issuing authority.
The most commonly accepted documents include:
Passport (standalone document, most preferred)
OR, if no passport:National ID card (must show photo, name, current address, date of birth, and expiration date)
U.S. driver’s license
Foreign driver’s license
U.S. state ID card
Foreign voter’s registration card
Birth certificate (required for dependents under 18, unless passport is provided)
School or medical records (for dependents, if applicable)
Note: If you apply through a Certified Acceptance Agent (CAA), they can verify your documents and you don’t have to mail the originals to the IRS.
For the complete list of acceptable documents, please visit the IRS page here:
https://www.irs.gov/tin/itin/itin-acceptance-agents
5. How long does it take to get an ITIN?
Processing time is typically 70-12 weeks (longer if applying during peak tax season or from outside the U.S.).
4. How do I apply for an ITIN?
To apply for an ITIN, follow these steps:
Step 1: Complete Form W-7 (Application for IRS Individual Taxpayer Identification Number).
👉 Download Form W-7 (PDF): https://www.irs.gov/pub/irs-pdf/fw7.pdf
👉 Instructions for Form W-7: https://www.irs.gov/instructions/iw7
Step 2: Gather your required supporting documents (see FAQ #3).
Step 3: Submit your Form W-7 along with all required supporting documents certified by a Certified Acceptance Agent (CAA).
A CAA is authorized by the IRS to review and certify your documents, ensuring accuracy and completeness.
6. When does an ITIN expire and how do I renew it?
Expiration rules:
An ITIN will expire if it has not been used on a U.S. federal tax return for at least 3 consecutive years.
Renewal process:
To renew your ITIN, you must submit a Form W-7 (Application for ITIN) again, but this time mark the box for “Renewal.”
You must also provide the same required identity and foreign status documents (see FAQ #3).
If you use a Certified Acceptance Agent (CAA), they can certify your documents and handle the renewal process securely.
Want to learn more?
Read our ITIN Blog for a complete overview of ITIN, including who needs it, why it matters, and the renewal process.
ITIN
Frequently asked questions
1. What is Form W-8BEN?
Form W-8BEN, or the Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals), is used by non-U.S. persons to:
Certify their nonresident status for U.S. tax purposes.
Claim benefits under an applicable income tax treaty to reduce or eliminate U.S. withholding.
It is submitted to the U.S. payer or withholding agent, not directly to the IRS.
2. Who needs to submit Form W-8BEN?
Non-U.S. individuals receiving certain types of U.S.-source income, such as:
Dividends from U.S. corporations
Interest on U.S. bank accounts or bonds
Royalties on intellectual property
Other payments subject to U.S. withholding
Individuals claiming treaty benefits
Note: Other situations may require W-8BEN depending on the payer and income type.
3. What happens if I don’t submit a W-8BEN?
Without a valid W-8BEN, U.S. payers are required to withhold tax at the default 30% rate on U.S.-source payments. This may result in higher withholding than necessary and require filing a U.S. tax return to claim a refund.
4. How long is Form W-8BEN valid?
Generally valid for three calendar years from the date signed.
Must be updated if personal information changes (address, country of residence, tax treaty eligibility).
Each payer usually requires a separate form.
5. Do I need an ITIN to complete W-8BEN?
An ITIN is required only if you are claiming tax treaty benefits.
If you do not have an ITIN, treaty benefits may not apply, and the default 30% withholding may be applied.
Form W-8BEN FAQ
6. How do I claim a tax treaty benefit?
Enter the country of residence and specify the applicable treaty article on the form.
Ensure you have an ITIN if required.
Certify your eligibility by signing the form.
Example:
A Canadian investor receives dividends from a U.S. company. By completing W-8BEN and claiming benefits under the Canada-U.S. tax treaty, withholding may be reduced from 30% to 15%.
7. Where do I submit Form W-8BEN?
Always submit to the U.S. payer or withholding agent, not directly to the IRS.
Each payer requires a separate form.
Keep copies for your records.
8. Where can I find the official IRS Form W-8BEN and instructions?
Form W-8BEN (PDF): https://www.irs.gov/pub/irs-pdf/fw8ben.pdf
Instructions for Form W-8BEN: https://www.irs.gov/instructions/iw8ben
9. Can I fill W-8BEN online?
Some financial institutions and platforms allow electronic submission of W-8BEN through their systems. Always follow the payer’s instructions for electronic submission.
10. What if my information changes after submitting W-8BEN?
You must submit a new W-8BEN to the payer whenever personal information, country of residence, or treaty eligibility changes.
Failure to update may result in incorrect withholding.
11. Do I need to renew W-8BEN?
Yes, typically every three years or when any relevant information changes.
Early renewal is recommended to avoid unnecessary withholding or compliance issues.
Want to learn more?
W-8BEN form, its purpose, and how to file it correctly? Read our W-8BEN Blog for a complete overview, including who needs it and common mistakes to avoid.
Frequently asked questions
1. What is the Foreign Earned Income Exclusion (FEIE)?
The FEIE allows U.S. citizens and resident aliens working abroad to exclude a portion of their foreign-earned income from U.S. federal taxation. For 2025, the maximum exclusion is $126,000. Eligible taxpayers may also qualify for a Foreign Housing Exclusion for qualified housing costs incurred overseas.
2. Who is eligible to claim the FEIE?
To claim the FEIE, you must:
Be a U.S. citizen or resident alien.
Earn income from services performed outside the U.S. (e.g., salary, wages, or self-employment income).
Maintain a tax home in a foreign country.
You must also meet either the Bona Fide Residence Test (residing abroad for a full tax year) or the Physical Presence Test (being abroad for at least 330 full days within a 12-month period).
3. What income qualifies for the FEIE?
Qualifying income includes compensation for active work performed outside the U.S., such as wages, salaries, or self-employment earnings. Non-qualifying income includes dividends, interest, capital gains, pensions, and certain deferred compensation.
4. How does the Foreign Housing Exclusion work?
The Foreign Housing Exclusion allows you to deduct certain housing expenses incurred abroad that exceed an IRS-determined base amount (typically $18,000 in 2025). Expenses above this base, such as rent, utilities, and some overseas living costs, can be excluded to further reduce U.S. taxable income. Limits vary depending on the location of residence.
5. Do I still have to pay U.S. taxes if I claim the FEIE?
Yes, income above the exclusion limit or non-qualified income is still subject to U.S. tax. Additionally, self-employed individuals must pay self-employment taxes even on excluded income. In some situations, claiming the Foreign Tax Credit may be more beneficial than the FEIE.
U.S. Citizens Living Abroad and FEIE
1. What is the Foreign Earned Income Exclusion (FEIE)?
The FEIE allows U.S. citizens and resident aliens working abroad to exclude a portion of their foreign-earned income from U.S. federal taxation. For 2025, the maximum exclusion is $126,000. Eligible taxpayers may also qualify for a Foreign Housing Exclusion for qualified housing costs incurred overseas.
2. Who is eligible to claim the FEIE?
To claim the FEIE, you must:
Be a U.S. citizen or resident alien.
Earn income from services performed outside the U.S. (e.g., salary, wages, or self-employment income).
Maintain a tax home in a foreign country.
You must also meet either the Bona Fide Residence Test (residing abroad for a full tax year) or the Physical Presence Test (being abroad for at least 330 full days within a 12-month period).
3. What income qualifies for the FEIE?
Qualifying income includes compensation for active work performed outside the U.S., such as wages, salaries, or self-employment earnings. Non-qualifying income includes dividends, interest, capital gains, pensions, and certain deferred compensation.
4. How does the Foreign Housing Exclusion work?
The Foreign Housing Exclusion allows you to deduct certain housing expenses incurred abroad that exceed an IRS-determined base amount (typically $18,000 in 2025). Expenses above this base, such as rent, utilities, and some overseas living costs, can be excluded to further reduce U.S. taxable income. Limits vary depending on the location of residence.
5. Do I still have to pay U.S. taxes if I claim the FEIE?
Yes, income above the exclusion limit or non-qualified income is still subject to U.S. tax. Additionally, self-employed individuals must pay self-employment taxes even on excluded income. In some situations, claiming the Foreign Tax Credit may be more beneficial than the FEIE.