What Is a Tax Identification Number (TIN)?

A Tax Identification Number (TIN) is a nine-digit number that the 澳洲幸运5官方开奖结果体彩网:Internal Revenue Service (IRS) uses to identify taxpayers. Also known as a Taxpayer Identification Number, one type of TIN is a 澳洲幸运5官方开奖结果体彩网:Social Security number (SSN).

Types of TINs

• Social Security number (SSN): This is the most common TIN issued to U.S. citizens, permanent residents, and certain temporary residents by the 澳洲幸运5官方开奖结果体彩网:Social Security Administration. It's formatted as XXX-XX-XXXX. The SSN is required to secure legal employment in the U.S. and to receive Social Security benefits and other government services.
• Individual Taxpayer Identification Number (ITIN): This is issued by the IRS to certain nonresident and resident aliens, their spouses, and their dependents when they're ineligible for SSNs. It's arranged in the same format as an SSN (XXX-XX-XXXX). The ITIN always begins with a 9. The applicant must complete Form W-7 and submit documents supporting their resident status to get an ITIN.
• Employer Identification Number (EIN): This is used by the IRS to identify corporations, trusts, and estates that must pay taxes. Just like SSNs, EINs are nine digits but they're read as XX-XXXXXXX. Those who qualify for an EIN must apply for and use it to report their capital gains and income for taxation purposes.
• Adoption Tax Identification Number: The ATIN applies to domestic adoptions when the adoptive parents cannot obtain the child's SSN to complete their tax returns. The child must be a U.S. citizen or permanent resident to qualify and the adoption must be pending.
• Preparer Tax Identification Number: The IRS requires a PTIN on each tax return that's filed. Any tax preparer who charges to complete all or part of a tax return for another individual must have and use a PTIN.
  

When Is a TIN Required?

A TIN identifies individuals, corporations, and entities such as 澳洲幸运5官方开奖结果体彩网:nonprofit organizations (NPOs). The TIN is mandatory for anyone filing annual 澳洲幸运5官方开奖结果体彩网:tax returns with the IRS and the agency uses it to track taxpayers. In addition:

• For credit: Banks and other lenders require SSNs on credit applications. This information is then relayed to the credit bureaus to ensure that the right person fills out the application. The 澳洲幸运5官方开奖结果体彩网:credit reporting agencies also use TINs, notably SSNs, to report and track an individual's credit history.
• For employment: Employers require an SSN from anyone applying for employment. This ensures that the individual is authorized to work in the U.S. Employers verify the numbers with the issuing agency.
• For state agencies: Businesses also need state identification numbers for tax purposes to file with their state tax agencies. State taxing authorities issue the I.D. number directly to the filer.

Global TINs

Almost every country uses TINs for various reasons. For example, Canada uses 澳洲幸运5官方开奖结果体彩网:Social Insurance Numbers (SINs) for employment, taxation, the provision of benefits, and credit purposes.

The SIN is a nine-digit unique identifier that's formatted as XXX-XXX-XXX. Countries in the European Union also use TINs that help government agencies identify taxpayers and allow entities to invest money across the EU.

The Bottom Line

A TIN is necessary to have to work in the U.S. and file a tax return. A Social Security number is a type of TIN used by individuals. Corporations, trusts, and nonprofit organizations also use TINs.🍸