If you’ve ever filled out U.S. tax forms as a non-U.S. resident, you’ve probably seen the terms ITIN and EIN. They sound similar, but they serve very different purposes.
At Nolly.com, we help international clients understand and apply for the correct identification number. Here’s a simple explanation of what each one is, who needs it, and how to get it.
What Is an ITIN?
An Individual Taxpayer Identification Number (ITIN) is issued by the IRS to people who must file or report U.S. income but don’t qualify for a Social Security Number.
You may need an ITIN if you:
- Earn rental income from U.S. property
- Sell real estate and need a FIRPTA refund
- File a 1040NR tax return as a non-resident
- Are a dependent or spouse of a U.S. taxpayer
An ITIN allows you to pay taxes and receive refunds. It is only for individuals—not for companies—and it does not authorize you to work in the U.S.
What Is an EIN?
An Employer Identification Number (EIN) is used for businesses, partnerships, and corporations. It’s like a Social Security Number for a company.
You may need an EIN if you:
- Own a U.S. business or partnership
- Hire employees or plan to open a business bank account
- Withhold taxes for U.S. workers or contractors
- Need to file corporate or partnership returns (such as Form 1065 or 1120)
Main Differences
- Purpose: ITINs are for individuals; EINs are for businesses.
- Who Issues Them: Both come from the IRS, but the application process differs.
- Forms: ITINs use Form W-7, while EINs use Form SS-4.
- Use Case: An investor filing a 1040NR return uses an ITIN. A company that manages rental properties might need an EIN.
Can You Have Both?
Yes. A non-U.S. person can have both if they run a U.S. business and also file personal taxes. For example, a Canadian who owns a U.S. rental property through a company might need an EIN for the company and an ITIN for personal filing.
How to Apply for an ITIN
To get an ITIN, complete Form W-7 and include:
- Proof of identity (usually a passport)
- A supporting tax document, like a 1040NR or 8288-B form
The simplest and safest option is to apply through a Certified Acceptance Agent (CAA) such as Nolly.com. We verify your identity digitally, so you never mail original passports or visit an IRS office.
How to Apply for an EIN
EINs can be applied for directly with the IRS by completing Form SS-4. Non-U.S. applicants can submit by mail or fax. Nolly.com also assists clients in completing this process correctly, ensuring no delays or rejections.
Choosing the Right One
If you’re unsure which number you need, think about your goal.
- If you’re filing a personal tax return, claiming a refund, or receiving U.S. rental income, you need an ITIN.
- If you’re forming a company or hiring employees, you need an EIN.
Final Thoughts
Getting the right identification number is essential for smooth tax filing and compliance. The process doesn’t have to be confusing. Start your ITIN application with Nolly.com today and let our certified experts guide you every step of the way. We’ll help you choose the right number and complete your IRS filing quickly and correctly.
