When filing taxes with the IRS, it’s imperative that you use the right tax ID number so that everything is submitted properly. However, for personal use, many people have a social security number. Are these the same thing? If not, when are they different? If you need help getting a tax ID formfilled out, you can go to govdocfiling.com.
What is a Tax ID Number?
Simply put, this is the nine-digit code that the IRS uses to identify any entity for tax purposes. Tax IDs can be issued for individuals or businesses, but most companies will have an employer ID number (EIN) instead.
Your SSN is a version of a tax ID number. Instead of applying for one, you are issued one when you’re born in the United States. The terms are technically interchangeable since TIN can refer to any tax ID, including your social security.
When is Filing for a TIN Necessary?
If you weren’t born in the United States, then you will have to apply for a tax ID number so that you can pay your taxes. There are two ways that you can do this.
First, you can apply for a social security number (SSN). This is the best course of action, assuming that you are seeking citizenship and will become a permanent resident of the country.
Second, you can apply for an Individual Tax ID Number (ITIN). However, this is only an option for people who are ineligible for an SSN. For example, some non-resident aliens may have to pay taxes, but since they don’t live in the country permanently, they have to obtain an ITIN instead.
Bottom Line
Overall, unless you cannot get a social security number, you shouldn’t worry about obtaining an individual tax ID number. An SSN is much better and offers you more security. Also, the term “tax ID number” can be used to describe any one of these, whether it’s an SSN, an ITIN, or an EIN.
