The IRS issues ITINs to people who need a tax identification number to process tax returns and payments.Who might need an ITIN: non-resident fax number database alien who is filing a U.S. tax return and not eligible for an SSN A U.S. resident alien (based on days present in the United States) filing a U.S. tax return and not eligible for an SSN A dependent or spouse of a U.S. citizen/resident alien A dependent or spouse of a non-resident alien visa holder ITINs are for tax-reporting purposes fax number database only; the number cannot be used for identification purposes. The IRS emphasizes that the ITIN is NOT used:
To authorize someone to work in the U.S. To make someone eligible for Social Security benefits, or To qualify a dependent for an Earned Income fax number database Tax Credit (EITC).4 Dependents no longer need Social Security numbers for taxpayers to qualify for the EITC, beginning with the 2021 tax year, but taxpayers will receive a credit based on the rules for childless households. This change was implemented by the American Rescue Plan Act in March 2021.5Employer ID Numbers: Who Needs fax number database Them An Employer ID (or EIN) is a federal tax identification number for businesses. Although it's labeled as an identifier for "employers," you don't have to have employees to need an EIN.6
In addition to being used for paying business income taxes, an Employer ID is used:
By banks, as a requirement for opening a business bank account For a business loan application By localities as an identifier fax number database for business licenses and permits For reporting and paying federal payroll taxes (federal income tax and FICA (Social Security/Medicare) taxes Read more about when your business might need an EIN.Business Types and Tax ID Numbers A fax number database sole proprietorship commonly uses the owner's Social Security number for the tax number for the business. Since the business files and pays taxes through the owner's personal tax return, the SSN is the only Taxpayer ID Number needed.