What is an ITIN?
The ITIN, or Individual Taxpayer Identification Number, is issued by the IRS (Internal Revenue Service) and is used primarily for tax purposes in the United States. If you don’t qualify for an SSN (Social Security Number) because you’re not a U.S. resident, the ITIN is your key to accessing many U.S.-based services that would otherwise be out of reach.
As someone deeply involved in digital marketing and cross-border business, I found that having an ITIN was incredibly helpful when it came to applying for services that typically require a U.S. SSN. For those of us working internationally, an ITIN can open doors to financial tools that simplify managing U.S.-based revenue streams, even without being a U.S. resident.
What is an ITIN Used For?
An ITIN is essential for filing federal taxes in the U.S. The U.S. is a credit-based country, and many financial accounts—such as credit cards, bank accounts, and even PayPal—often require an SSN or ITIN for setup. The purpose of getting an ITIN is to facilitate access to U.S. services without needing to immigrate. For professionals in the cross-border industry, it’s often paired with an EIN (Employer Identification Number) when forming a U.S. company.
Upgrading Your U.S. PayPal Account with an ITIN
One of the practical uses of an ITIN is upgrading a U.S. PayPal account. Without an SSN or ITIN, PayPal restricts certain features, such as receiving payments. For instance, if you’re earning from an affiliate network or getting payments from U.S. clients, the funds may remain in a pending state until proper identification is provided.
Upgrading your PayPal account with an ITIN allows the funds to be credited as a balance in your account, which you can then withdraw or use for payments. Additionally, with an ITIN, your PayPal account is less likely to face limitations, and you can even purchase cryptocurrencies within PayPal.
Here’s a step-by-step guide on how to link your ITIN with PayPal after obtaining it:
- Log into your U.S. PayPal account: PayPal Account Profile.
- Navigate to the section to edit your SSN:
- Encounter an issue? If you hit a snag like I did (PayPal might initially reject your ITIN), consider using the method of purchasing a small amount of cryptocurrency to trigger an SSN validation, or reach out to PayPal support for assistance.
- Go to Finances in your PayPal account: From there, you can initiate the process of verifying your ITIN by purchasing cryptocurrency.
- Complete the process: Once your ITIN is verified, your PayPal account’s restrictions will be lifted.
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Applying for a U.S. Credit Card with an ITIN
Beyond PayPal, your ITIN can help you apply for U.S. credit cards and bank accounts—essential tools for anyone involved in cross-border eCommerce, affiliate marketing, or freelancing. As of the time of writing, here are some of the banks and credit card companies that accept ITIN:
Banks:
- HSBC Checking
- Citi Checking
- American Express
- Capital One Checking
- U.S. Bank Checking
- Alliant Credit Union
- Varo
- GO2Bank
- Schwab HYI Checking
- Revolut
Credit Cards:
- Apple Card
- Go2Bank Credit
- American Express Credit Card
- Bank of America Secured Credit Card
- Citibank Secured Credit Card
- PayPal Credit
- Capital One Secured Credit Card
- Chase Credit Card
- Venmo Credit Card
Boosting Your eCommerce Platform Standing with an ITIN
If you’re operating an eCommerce business on platforms like eBay, Etsy, or Amazon, having an ITIN can be a game-changer. It can improve your store’s standing when tax information is required, and it provides a solid proof of legitimacy when platforms request additional compliance documentation.
The Differences Between ITIN, SSN, and EIN
In navigating U.S. tax regulations, it’s crucial to understand the differences between ITIN, SSN, and EIN:
- ITIN: A tax ID for individuals who are not eligible for an SSN. This is used by non-U.S. residents.
- SSN: A nine-digit number issued to U.S. citizens, permanent residents, and temporary (working) residents.
- EIN: A tax ID for businesses in the U.S., known as an Employer Identification Number.
Who Should Apply for an ITIN?
If you’re involved in digital marketing, cross-border eCommerce, or investing in the U.S., applying for an ITIN is a wise decision. Here’s who would benefit most:
- Digital marketers working internationally
- Affiliate marketers
- U.S. stock market investors
- Cross-border eCommerce professionals
- Individuals looking to open U.S. financial accounts (bank accounts, credit cards)
- Entrepreneurs planning to start a U.S. company
- Investors interested in U.S. real estate or businesses
How to Apply for an ITIN
There are three primary ways to apply for an ITIN:
- DIY Application: You can fill out the necessary forms and submit them yourself. This method requires you to certify your passport at a U.S. embassy.
- Using Fiverr: The most recommended method, especially for non-U.S. residents, is to hire a freelancer on Fiverr who specializes in ITIN applications.
- For example, top-rated sellers like theshstudio, moorochka, and jingxu410 offer these services.
- CAA Agents: Certified Acceptance Agents (CAA) can assist with the application, making the process smoother and ensuring everything is in order.
Required Documents for ITIN Application
Regardless of how you apply, you’ll need the following documents:
- Passport copy (or a combination of national ID and driver’s license)
- U.S. address
- U.S. phone number
- W-7 Form (Download here)
- 1040NR Form
Comparing the Application Methods
Here’s a quick comparison of the three methods:
- DIY: Cost-effective but time-consuming and requires careful attention to detail.
- Fiverr: Convenient and professional; costs are higher, but worth the peace of mind. Top-rated sellers like theshstudio, moorochka, and jingxu410
- CAA Agents: Ideal for those setting up a U.S. company or looking for a hassle-free experience.
Common Questions About ITIN
How long does it take to get an ITIN?
The process can take up to two months, and it may be longer during peak tax season (January 15 to April 30). Plan ahead to avoid delays.
Where do I send my ITIN application?
Send it to: Internal Revenue Service, ITIN Operation, P.O. Box 149342, Austin, TX 78714-9342.
Can ITIN serve as proof of residency?
No, ITIN is solely for tax purposes and cannot be used as proof of residency.
What are the maintenance fees for ITIN?
ITIN must be renewed every five years, and the process costs around $200 if done through a CAA agent.
Does applying for an ITIN affect immigration status?
No, applying for an ITIN does not impact your immigration status. It is purely for tax reporting purposes.
Using a Top service expert on Fiverr for ITIN applications can significantly speed up the process—this was especially helpful when my wife applied, and we saw a noticeable difference in how quickly everything was handled. I highly recommend checking out theshstudio, moorochka, and jingxu410 on Fiverr for top-notch assistance.
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Final Thoughts
Applying for an ITIN may seem like a daunting process, but with the right guidance and resources, it can be relatively straightforward. Whether you’re a digital marketer, an affiliate professional, or a cross-border entrepreneur, having an ITIN can significantly streamline your operations in the U.S.
I hope this guide helps you in your journey. If you found it useful, feel free to share it with others who might benefit. And as always, if you have any questions or need further assistance, leave a comment below, and I’ll do my best to help!
