Posted by Larry Hurt

W 7 Tax Form: What is the Purpose?

W 7 Tax Form: What is the Purpose?

The W7 tax form was introduced solely to issue out an Individual Tax Identification Number (ITIN.) The Internal Revenue Service issues the ITIN number to help file taxes. Individuals that need to have the U.S. taxpayers I.D. number but cannot because they are not qualified for social security number.

Some residents and non-residents have payment and tax responsibilities according to the I.R. code. These residents qualify for ITINs. ITIN is a nine digit number in the format "9XX-7X-XXXX." Classes of individuals hat need ITINs are:

  • Immigrants filing a U.S. tax return, not qualified for a SSN
  • U.S. resident not eligible but filing a U.S. tax return
  • Spouse or dependent of a U.S. citizen or a non U.S. citizen

With this article, we will shed light on the concept of the W7 form and its purpose.

W7 form and its purpose

The W7 form is an important document used by the IRS to confirm the identity of a tax-paying noncitizen. The IRS also uses it to request relevant information like contact info.

The process of issuing ITIN commenced in July 1996. If one’s spouse or dependent is not qualified and does not have a social security number, ITINs is applied to individual income tax return to claim an exemption. 

It is essential to understand that the W7 form gives the same kind of info that qualified and taxpaying U.S. citizens supply to the IRS. The W7 form, however, allows those that are not eligible for social security number to also file their tax returns and make payment.

The process of completing and sending over the ITIN W7 application is easy, as everything you need is available online. The ITIN application page has the resources you need. You can then gather the documents to mail after completing the online paperwork.

Important Things to Note

  • Everyone should be aware that all W7 forms should be submitted by the last day of this year (Dec, 31st 2019) as the ITIN expires that day.  
  • Also, the primary purpose of ITIN is for federal tax only. It does not qualify people for social security benefits. Also, it does not alter the immigration status or affect your right to work in the United States.
  • In the same manner, people filing tax returns with an ITIN are not qualified for Earned Income Credit (EIC)
  • People filing their tax returns using ITIN are not eligible for government retiree credit and work pay. The exception to this is if the person files a joint return with a spouse that already has a social security number.
  • You do not need to fill the W7 form if you qualify for the social security number. United States Citizens, people admitted into the U.S. for permanent residence or employed are qualified for an SSN.
  • You do not have to fill the W7 form if your application for SSN is pending. You can, however, proceed to complete the W7 form if you were notified that you are not eligible for an SSN.
  • You need a letter of SSN denial attached to your W7 form if the SSA states that you are not qualified for an SSN. You need to do this if you are attaching your federal tax return or making a request for ITIN.

Steps to fill out the W7 form

The following will guide you in filling your W7 form:

  • You need to confirm that all information you are submitting corresponds with what you have on your supporting documents 
  • Complete the online application form carefully
  • Attach the W7 PDF form sent to you via mail to the front of your tax return. This is in addition to your original federal tax return(s) that you need the ITIN for
  • The area of the SSN should be blank since you are already applying for ITIN
  • Attach your original documents, and you can also use certified copies
  • Include any additional information should your application be filed under "EXCEPTION." In addition, include any supporting application and required documents
  • Forward your packages, which include W7 form, Documentation, and tax returns to the IRS.
Larry Hurt
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