The IRS Form W-7 (Application for IRS Individual Taxpayer Identification Number) is used by nonresident individuals to apply for a U.S. tax ID number when they are not eligible for a Social Security Number (SSN).

An ITIN is a taxpayer identification number (TIN) used by nonresidents to comply with U.S. withholding tax obligations and to file Form 1040-NR (US Nonresident Alien Income Tax Return).

Who Needs to File Form W-7?
  • Nonresident with Form 1040-NR Filing Obligation: If a nonresident receives effectively connected income (ECI) with a U.S. trade or business, they generally must file a Form 1040-NR to report the income and pay U.S. income taxes. Nonresidents must also file Form 1040-NR to report U.S. source FDAP income that wasn’t subject to the correct amount of withholding taxes.
  • U.S. Resident Aliens: A nonresident who is physically present in the United States for enough days to meet the substantial presence test is considered a U.S. tax resident for that tax year. The individual must apply for an ITIN and file Form 1040 as a U.S. tax resident.
  • Dependents or Spouses: A dependent or spouse may need an ITIN if they are not eligible for an SSN.
  • Nonresident Alien Claiming Tax Treaty Benefits: A nonresident may be exempt from U.S. income taxes under a relevant income tax treaty. However, in order to claim the treaty benefits, the individual must affirmatively claim the benefits on an income tax filing which would require an ITIN.
Example of Form W-7 Requirements

John Doe is a citizen and resident of Bermuda. John invests $50,000 into a Florida restaurant business for a 15% ownership stake. The restaurant is organized as a Florida limited liability company (LLC), taxable as a partnership. Because the Florida LLC is engaged in a U.S. trade or business and is taxable as a partnership, the flow-through ordinary income to John is subject to federal income taxes.

John files Form W-7 to obtain an ITIN. Each year, John receives a Schedule K-1 (Form 1065) from the restaurant and uses the information to complete his Form 1040-NR tax filing. John pays federal income taxes on his net profits from the business.

Key Points to Remember
  • No Employment Authorization: An ITIN does not authorize the individual to work in the U.S. or provide eligibility for Social Security benefits.
  • Expiration Dates: An ITIN will expire unless the taxpayer regularly uses it by filing annual federal income tax returns. Generally, if an ITIN hasn’t been used at least once on a U.S. federal tax return for any of the prior three tax years, it will expire at the end of the current year.
  • ITIN vs. SSN: Not all nonresidents are required to file for an ITIN. If a nonresident already has an SSN because they previously lived and worked in the U.S. on a temporary resident visa, their SSN is valid forever, and they can continue to use it.

Video Tutorials on Form W-7

Please view some of our tutorials below on the Form W-7 and Form 1040-NR filings:

Additional Information

Taxpayers can find more information in the Form W-7 instructions and the IRS website.