What to Do with ITIN After Receiving SSN
Receiving an ITIN (Individual Taxpayer Identification Number) can be a significant milestone for individuals who are not eligible for a Social Security Number (SSN). The ITIN is a unique nine-digit number issued by the IRS to individuals who are required to have a taxpayer identification number but are not eligible for an SSN. After receiving an ITIN, it is crucial to understand what to do with it to ensure compliance with tax regulations and to make the most of its benefits.
Firstly, it is essential to keep your ITIN secure and confidential. Since the ITIN is a sensitive piece of information, it should be treated with the same level of care as your SSN. Avoid sharing your ITIN with anyone who does not have a legitimate reason to know it, such as tax preparers, employers, or financial institutions. This will help protect you from identity theft and unauthorized use of your ITIN.
Once you have received your ITIN, you may need to update your tax records. If you have already filed a tax return using your ITIN, ensure that you keep a copy of the return for your records. If you have not filed a tax return, it is advisable to do so as soon as possible. By filing a tax return, you can claim any applicable tax credits and deductions, which may result in a refund or a lower tax liability.
Another important step is to inform your employer if you are required to provide an ITIN for tax purposes. Employers are required to withhold taxes from the income of non-resident aliens, and the ITIN is necessary for this purpose. Make sure to provide your employer with a valid ITIN and keep them informed of any changes to your ITIN or tax status.
It is also essential to understand the expiration policy for ITINs. The IRS has implemented a policy requiring ITINs to be renewed every five years. To renew your ITIN, you will need to file a tax return with the IRS. This process ensures that the ITIN is still valid and that you are up-to-date with your tax obligations. Failure to renew your ITIN may result in the loss of eligibility for certain tax benefits and credits.
Lastly, if you have received an ITIN but are later eligible for an SSN, it is important to replace your ITIN with your SSN. This can be done by updating your tax records and notifying the IRS of the change. Once you have an SSN, you will no longer be required to use your ITIN for tax purposes.
In conclusion, after receiving an ITIN, it is crucial to keep it secure, update your tax records, inform your employer, renew your ITIN as required, and replace it with an SSN if you become eligible. By following these steps, you can ensure compliance with tax regulations and make the most of the benefits that come with having an ITIN.
