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QuickBooks Payroll ITIN

QuickBooks Payroll ITIN

Using Individual Taxpayer Identification Number [ITIN] Intuit QB Payroll

QuickBooks is an excellent software that has positively changed the accounting domain by streamlining all kinds of tasks and activities. QuickBooks Payroll aids in making payday a delight because all kinds of work become more organized and leads to better output. It makes the whole process tremendously hassle-free and faster. Accounting departments of different corporations prefer using QuickBooks Payroll Calculation for all payroll management-related activities.

During the taxation time, it is much easier to deal with tax-related formalities with the help of QuickBooks Payroll. This includes calculating different percentages or filling out forms. It is a tremendously useful software. To make taxation time easier for everyone, there are different kinds of things. One of them is ITIN QuickBooks Payroll. Let us explore a little more about it.

Why IITN is required by business owners?

The business owners do have ITIN because it is used for federal tax reporting. This is important to file the U.S. tax returns. So for this, you have to apply as soon as possible to have the ITIN if you don’t have any.

How to Get an ITIN?

For ITIN, you have to complete the IRS Form W-7, an application of IRS for the ITIN (Individual Taxpayer Identification Number). The W-7 requires a true identity for every individual. Now mail your documentation to the address mentioned on your Form W-7. You can also process it via an acceptance agent like accounting firms, colleges, financial institutes, and more. They are the IRS-authorized entities that assist applicants in getting their ITIN.

Why ITIN Essential For Running Payroll QuickBooks

Understanding ITIN

The full form of ITIN is an individual taxpayer identification number. It is a tax processing number. This is issued by the IRS (Internal Revenue Service). It is a 9-digit number that begins with the number 9. Internal Revenue Service issues ITINS to all those who are supposed to have a US taxpayer identification number but do not have it or it might be possible that according to eligibility criteria, they cannot get a social security number (SSN) from the SSA i.e. Social Security Administration.

ITINs are usually issued irrespective of the individual’s immigration status. Both residents and non-residents may have to file taxes according to US filing requirements according to the Internal Revenue Code. Individuals who need to file a valid federal income tax return will receive an ITIN until the exception is met. The employer uses ITIN no for Payroll Deductions QuickBooks and filing taxes.

Pay Tax Using ITIN Intuit Payroll

Uses of ITIN

ITIN is used for federal tax reporting and cannot be used for any other purpose. IRS helps individuals in complying with the U.S. tax laws. This helps to efficiently process and account the tax returns and payments properly, even for people who are not eligible for Social Security numbers. Online Payroll doesn’t support ITINs. This is according to the IRS regulations. Only employees with valid SSNs are supported.

Users of QuickBooks who want to know about QuickBooks Payroll or any detailed information about ITIN can contact the specialized and QuickBooks-trained team of QBPayrollhelp on QB Payroll Support. This team is there to guide you at all times regarding varied kinds of doubts during taxation time.

Filing Taxes with an ITIN

  1. The IRS issues ITINs (Individual Taxpayer Identification Numbers) for federal tax purposes exclusively. ITINs are strictly for tax reporting and do not confer authorization to work in the U.S. or eligibility for Social Security benefits.
  2. When filing tax returns using an ITIN, it’s crucial to note that any reported wages must be associated with the Social Security Number (SSN) under which the wages were earned. This can create an ITIN/SSN mismatch. Previously, returns with this mismatch could only be submitted via paper filing. However, recent programming updates have enabled the IRS e-file system to accept such returns. On Form 1040, the taxpayer’s correct ITIN should be used as the identifying number at the top. When entering W-2 information, the SSN must match exactly as shown on the W-2 issued by the employer. It’s now feasible to e-file a return even with an ITIN/SSN mismatch.
  3. Regarding eligibility for certain tax benefits, if either the primary taxpayer, spouse, or both possess ITINs, they are ineligible to receive the Earned Income Tax Credit (EITC), regardless of whether their dependents have valid SSNs. However, if the taxpayer and spouse (if filing jointly) have valid SSNs, only dependents with valid SSNs—not ITINs—qualify to receive EITC.

Applying for an ITIN

  1. Individuals seeking an ITIN must have a valid federal tax purpose for obtaining one. Typically, this purpose is demonstrated by including an original federal tax return with Form W-7, the Application for Individual Taxpayer Identification Number. This package, along with proof of identity and foreign status documents, is then mailed to the IRS address specified in the Form W-7 instructions.
  2. In instances where a taxpayer has already filed a tax return for the current year but omitted a spouse or dependent who requires an ITIN, they should complete Form 1040X, the Amended U.S. Individual Income Tax Return. This form should include the necessary information for the ITIN applicant and be submitted along with Form W-7.

Valid Documents for ITIN Application (W-7)

The IRS has streamlined the list of documents accepted as proof of identity and foreign status for obtaining an ITIN. There are now 13 acceptable documents, each of which must be current and include an expiration date. If an expiration date is not typically available, the IRS will consider documents issued within 12 months of the application. Additionally, these documents must display your name and photograph and support your claim of foreign status.

Here’s the list of accepted documents:

  1. Passport (as a stand-alone document)
  2. National identification card (must include photo, name, current address, date of birth, and expiration date)
  3. U.S. driver’s license
  4. Civil birth certificate (mandatory for dependents under 18 years of age)
  5. Foreign driver’s license
  6. U.S. state identification card
  7. Foreign voter’s registration card
  8. U.S. military identification card
  9. Foreign military identification card
  10. Visa
  11. U.S. Citizenship and Immigration Services (USCIS) photo identification
  12. Medical records (for dependents only – under 6 years old)
  13. School records (for dependents only – under 14 years old, or under 18 if a student)
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FAQs


  1. The ITIN tax processing number issues by whom and is there any specific number it is started from?

    The ITIN tax number is issued by the IRS and it is a 9-digit number that is started from the number 9.

  2. What if I don’t have an SSN; can it work only having ITIN?

    If you are a U.S. taxpayer then you must know that the ITIN is provided by the IRS to all individuals and foreign nationals who are required to have the U.S. taxpayer Identification number. It works if you do not have the Social Security Number (SSN).

  3. What cannot be done using the ITIN?

    If you have the ITIn then it does not mean that you can do all the things. It is for a few purposes only.

    The things you are not able to do with ITIN are as follows:-

    💠 You won’t get any social security benefits
    💠 You are not able to work in the United States.


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