Differences between ITIN and SSN, EIN
Many people will ask: Isn’t the U.S. tax ID number Social Security Number (SSN)? After registering a U.S. company there is a tax code called EIN, ITIN, SSN, and EIN and what is the difference between the three? Let’s do a comparison about the differences between the three:
- SSN: Only available to U.S. residents with legal status. In the U.S., SSN is essential whether you are applying for a loan, or credit card, renting an apartment, or getting a driver’s license.
- EIN: It is the tax identification number belonging to a U.S. company and is usually used for opening a bank account, filing tax returns, and paying taxes.
- ITIN: For all foreigners who are unable to apply for an SSN but have a need to file a tax return.
For example, if you are an Indian and do not have residency or employment status in the US, but you have a property for rent in the US, then the rental income is obviously taxable, in which case an ITIN is a must for you, if you have residency and employment status in the US, then use the SSN to file a tax return, and if the property is in the name of your company, then use the company tax ID number If the property is in your company’s name, then you will have to file your tax return using your company tax ID number, EIN.
What is the ITIN used for besides filing taxes?
- It can be used to open a bank account in the U.S. Today, some traditional banks are increasingly recognizing the ITIN as an alternative to the SSN for foreigners. You can read: Which US banks accept non-US residents to open a bank account with an ITIN tax number?
- Beneficial to the accumulation of U.S. credit, can apply for U.S. domestic credit cards, ITIN has gradually become one of the references of the card issuer to measure the creditworthiness of foreign applicants, and good credit can be used to apply for a loan to buy a car or a house.
- It is helpful for online store opening and operation. E-commerce platforms such as Amazon, eBay, TikTok, Etsy, etc. to open a store and some common payment gateways such as Stripe, PayPal, Shopify Payment, etc., in addition to the enterprise tax identification number (EIN), often require the store owner to provide the ITIN in order to complete the compliant registration.
- It can be used for immigration status and U.S. residency, and in some areas of the U.S., such as the deep blue states, the ITIN can be used as the basis for issuing a driver’s license to foreign nationals.
You can read about the process and fees for foreigners applying for an ITIN in the US: ONLY $265! Application process and fees to apply for an ITIN US tax number.