ITIN or SSN for a spouse or parent in India: who needs which, and how to apply

Families split across two countries run into the same problem every spring: a US tax return that asks for a number the spouse or parent does not have. There are two numbers, and they are not interchangeable.

The difference

• SSN (Social Security number). Issued by the Social Security Administration, mainly to citizens and to non-citizens with permission to work in the US. It is the number that credits, employers and many forms expect.
• ITIN (Individual Taxpayer Identification Number). Issued by the IRS to people who have a federal tax purpose but are not eligible for an SSN. It is for tax filing only.

The IRS is clear on what an ITIN does not do. It does not authorise work, does not provide or change immigration status, does not qualify the holder for Social Security benefits or the Earned Income Tax Credit, and is not identification outside the tax system.

Citizens, green card holders and anyone eligible for an SSN should not apply for an ITIN.

A spouse in India

If your spouse is a non-resident alien, whether they need a number depends on the filing choice.

The joint election brings your spouse's Indian income into the US return. It is a bigger decision than the number. See the spouse article.

A spouse who moves to the US on H-4

An H-4 spouse generally cannot obtain an SSN without work authorisation. An H-4 spouse who has an Employment Authorization Document can, and the SSA issues it on that basis. Until then, an ITIN is the route if you want to file jointly. Families sometimes file separately first and amend to joint once the SSN arrives, but check that the lower tax from a joint return justifies the extra work.

Parents in India

Parents who are Indian citizens, live in India and have never been US residents are not eligible to be your dependents, however much you support them. So there is nothing to claim and normally no need for an ITIN for them. Parents who become US residents, for example on a green card, can qualify as dependents if the dependency tests are met, and then need a number.

Money you send them is a separate matter: see gifts and loans.

Children

A child who holds an SSN valid for work is a different case from a child with only an ITIN. The Child Tax Credit requires the child's SSN, so an ITIN child generally qualifies only for the smaller credit for other dependents. If your child was born in India and has come to the US, get the SSN before you file.

How the ITIN application works

1. Form W-7 is the application. It goes in the same package as your tax return. The IRS says not to file it separately, except in the narrow cases it lists.
2. Documents. A valid passport is the one document that proves identity and foreign status by itself. Without it, you need a combination of other documents. Original or certified copies are required.
3. Where to apply. By mail to the IRS, in person at an IRS assistance centre, or through a Certifying Acceptance Agent, who can verify your documents so you do not have to mail your passport.
4. Timing. Allow about 7 weeks for notice, and 9 to 11 weeks during the filing season or when you apply from overseas. Apply on or before the return's due date or after an extension.

Because the application travels with the return, a joint return that waits for a spouse's ITIN is usually filed on paper, not e-filed.

Keeping the ITIN alive

An ITIN that is not used on a federal return for three consecutive years expires. Renew it with Form W-7 before the next return that needs it. When the holder later receives an SSN, the SSN replaces the ITIN. Tell the IRS and stop using the old number.

What to do

1. Decide the filing choice before applying for anything.
2. Check whether the spouse is eligible for an SSN through an EAD before paying for an ITIN.
3. Do not list parents in India as dependents.
4. Put the ITIN renewal date in a calendar.

Applying for the wrong number delays the return and can slow a refund.