What is an Individual Taxpayer Identification Number (ITIN) used for?

An Individual Taxpayer Identification Number (ITIN) is specifically designed for individuals who are required to have a taxpayer identification number but do not qualify for a Social Security Number (SSN). This is particularly relevant for non-resident aliens, their spouses, and dependents who cannot obtain an SSN. The ITIN allows these individuals to comply with U.S. tax laws by facilitating the reporting of income and, where applicable, the filing of tax returns.

While it is true that foreign entities and businesses have their own identification requirements, these are typically handled through other means such as Employer Identification Numbers (EINs). Additionally, while dependent family members may need an ITIN for tax purposes, the primary function of the ITIN itself caters to individuals rather than simply being a tool for dependents. Therefore, understanding the primary use of an ITIN helps clarify its purpose in ensuring that individuals without Social Security coverage still have a way to engage with the tax system in the U.S.