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What are the differences between EIN, ITIN, SSN, and tax ID in the United States?

    What are the differences between EIN, ITIN, SSN, and tax ID in the United States?

    Last Updated on: 24th January 2023, 08:22 pm

    In the United States, there are several different types of identification numbers that are used for tax purposes. These include the Employer Identification Number (EIN), Individual Taxpayer Identification Number (ITIN), Social Security Number (SSN), and Tax ID. Each of these numbers serves a specific purpose and is used in different situations.

    Employer Identification Number (EIN)

    An EIN is a unique nine-digit number assigned by the IRS to businesses, including corporations, partnerships, and LLCs.

    It is used to identify the business for tax purposes and is required for any business that has employees or will be filing taxes as a partnership or corporation.

    Individual Taxpayer Identification Number (ITIN)

    An ITIN is a nine-digit number assigned by the IRS to individuals who are required to have a U.S. taxpayer identification number but do not have, and are not eligible to obtain, an SSN.

    ITINs are issued regardless of immigration status because both resident and nonresident aliens may have a U.S. filing or reporting requirement under the Internal Revenue Code.

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    Social Security Number (SSN)

    An SSN is a unique nine-digit number assigned to U.S. citizens, permanent residents, and certain noncitizens for the purpose of tracking their earnings and determining eligibility for Social Security benefits.

    It is also used for tax purposes, and most individuals in the U.S. will use their SSN as their primary taxpayer identification number.

    Tax ID

    A Tax ID is a general term that can refer to any of the above identification numbers, but most commonly refers to an EIN. It is used to identify a business or individual for tax purposes and is required when filing taxes or opening a business bank account.

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    Conclusion

    EIN is used for business, ITIN for non-citizens, SSN for citizens and permanent residents, and Tax ID is a general term that refers to any of the above identification numbers.

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