Social Security Number/Individual Tax
Identification Number Similar to the Social Insurance Number issued in Canada , the US
issues a Social Security Number but take note, they are two completely
different numbers for two different countries! Your SIN is
of no use in the US except as noted in getting a credit rating .
Do not attempt to give your SIN to a US bank or use it on
a US tax return, as you will cause yourself no end of grief.
Besides, it can be considered fraud if you try to pass off your
SIN as an SSN. Once you have taken up residency in the US and are permitted to
work via a valid visa or Green Card, you are required to apply for
a Social Security Number using Form SS-5. The reason you need
an SSN is because the income paid to you from an employer, interest
from a bank account or a dividend from a mutual fund at a brokerage
firm needs to be tracked to an SSN for income tax purposes.
To apply for a Social Security Card/Number, click
here and print out the application and instructions.
For family members residing in the US but ineligible to work, you
are still able to claim them on your taxes and get the ensuing tax
benefits. To do so, however, you must have an Individual Tax
Identification Number for them or the IRS will deny any tax claims
for your dependents. To obtain an ITIN, you must fill out
a W-7 Form and provide the required documentation to the IRS who
will issue an ITIN in approximately eight to 12 weeks so. Unfortunately,
recent rule changes mean that you cannot apply for an ITIN unless
the W-7 form is attached to your tax return . . . the IRS has stopped
issuing ITINs unless there is demonstrated need to have one.
Once your family member receives authorization to work, they will
need to replace their ITIN with a SSN. To do so, just fill
out the SS-5 form outlined above and submit it to the Social Security
Administration. There is a spot on the form to provide your
ITIN and they will ensure it is replaced in the IRS system with
your new SSN.
Please note that sometimes a spouse that is ineligible to work will
be issued a SSN but stamped across it will be "Not eligible for
employment." In this case, do not file an ITIN, as you will
have two tax numbers to identify yourself causing untold confusion
with the government authorities.
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