If you’re earning income, opening a business, or filing taxes in the United States, you’ll need a valid tax identification number. But should you apply for ITIN vs SSN? Using the wrong one can lead to delays, rejections, or even legal issues.
In this article, we’ll explain the key differences between the ITIN and the SSN, and when to use each one depending on your immigration, tax, or business situation.
What does ITIN stand for?
ITIN stands for Individual Taxpayer Identification Number. It is issued by the IRS to individuals who are required to file taxes in the U.S. but are not eligible for a Social Security Number.
Common uses of an ITIN:
Filing federal or state tax returns
Claiming a dependent on a joint return
Reporting passive income (rent, dividends, interest)
Complying with U.S. tax treaties
Limitations:
Does not authorize employment
Does not grant access to Social Security benefits
Not a valid form of ID for immigration or work purposes
In short, the ITIN is a tax tool. It lets you comply with U.S. tax law, but it doesn’t change your immigration status.
What is a SSN?
A Social Security Number (SSN) is issued by the Social Security Administration to U.S. citizens, permanent residents, and certain foreign nationals with work authorization.
Common uses of a SSN:
- Working legally in the U.S.
Receiving Social Security, Medicare, and other federal benefits
Opening bank accounts, applying for loans and credit cards
Filing tax returns
Accessing public services
How many digits is SSN? A Social Security Number is a 9-digit number, typically formatted as XXX-XX-XXXX. To clarify, it serves as a personal and financial identifier across multiple sectors in the U.S.
ITIN vs SSN: Key differences
Understanding the differences between these two numbers is crucial to staying compliant and avoiding confusion.
| Feature | ITIN | SSN |
|---|---|---|
| Issued by | IRS | Social Security Administration |
| Requires legal immigration status | No | Yes |
| Authorizes employment | No | Yes |
| Used for tax filing | Yes | Yes |
| Access to benefits | No | Yes |
| Valid as general ID | No (only for tax purposes) | Yes (widely accepted) |
Using the right number ensures smoother compliance with tax and legal systems.
When should you use ITIN vs SSN?
Let’s clarify when each number applies so you can make an informed decision between choosing ITIN vs SSN.
Use an ITIN if:
You are not authorized to work in the U.S.
You are a nonresident with U.S. income
You are required to file a tax return but not eligible for a SSN
Use an SSN if:
You are a U.S. citizen or permanent resident
You hold a visa with work authorization
You will apply for public benefits or retirement credits
Choosing the correct tax ID number reduces errors and keeps your record in order.
Common mistakes to avoid ITIN vs SSN
These are some of the most frequent issues individuals face when dealing with tax identification in the U.S.:
Assuming an ITIN grants work authorization
Providing a fake SSN number on official documents (this is a federal offense)
Using an ITIN instead of an SSN after becoming eligible
Forgetting to renew an expired ITIN
Avoiding these mistakes will save you time, legal trouble, and future delays.
Starting a business? Here’s what you need to know
Foreign entrepreneurs often wonder whether they can form a U.S. company without a Social Security Number. To sum up, the answer is yes, but there are key details to manage correctly.
You do not need an SSN to form an LLC
You must apply for an EIN (Employer Identification Number) for your business
If you don’t have a SSN, getting an ITIN is highly recommended for personal tax filings
An ITIN also helps with opening business bank accounts, receiving payments, and demonstrating good tax compliance.
Why work with Loigica?
At Loigica, we help immigrants, investors, and entrepreneurs navigate the U.S. legal and tax system. Our bilingual legal team:
Determines whether you need an ITIN or SSN based on your goals
Guides you through business formation and tax identification setup
Ensures your structure is compliant with both immigration and tax regulations
Book a consultation today and avoid costly mistakes with your U.S. operations.
