The Individual Identification Number (ITIN) is an important document for immigrants filing taxes or receiving benefits in the United States. Foreigners with a permanent resident card with a work permit or undocumented immigrants must have the ITIN. The Internal Revenue Service (IRS) informs people of the obligation to update the ITIN immediately. The purpose of this notice is related to the need to file next year’s tax return.
ITIN numbers will expire on December 31 for users who have not reported their 2020, 2021, and 2022 tax obligations. Digits previously granted in 2013 must be renewed via Form W-7.
The advantages of an identification number
Obtaining the ITIN does not change the immigration status of foreign citizens nor does it grant a work permit. However, these numbers will allow you to more quickly access Temporary Protected Status (TPS) provided by Citizenship and Immigration Services (USCIS).
The American Immigration Council reported that several people with ITINs are eligible to elect the Child Tax Credit (CTC). The law passed in March 2021 provides that the CTC for children under 6 years of age is worth $3,600.00. Parents with teenagers up to 17 years old may charge a fee of $3,000.00.
In 2014, the CTC benefited 4 million children because their parents had the ITIN. Another benefit that immigrants with the ID number can also apply for is the Child and Dependent Care Credit (CDCC).
The IRS clarifies that the CDCC is requested via Form 2441. This federal agency will change tax rules next year due to the inflation Americans are facing.
