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2.7 SSN, ITIN & Residency Status

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1 Part 1, Chapter 1: Tax Return Basics & Filing Requirements

1.1 Form 1040 Overview & Structure 1.2 Form 1040-SR for Seniors 1.3 Who Must File (Income Thresholds) 1.4 Filing Deadlines & Extensions (Form 4868) 1.5 Penalties: Failure to File vs. Failure to Pay 1.6 Sources of Tax Information (W-2s, 1099s, K-1s) 1.7 Preparer Due Diligence Requirements 1.8 Amended Returns (Form 1040-X)

2 Part 1, Chapter 2: Filing Status & Dependents

2.1 Single & Married Filing Jointly 2.2 Married Filing Separately 2.3 Head of Household Requirements 2.4 Qualifying Surviving Spouse 2.5 Qualifying Child Test (5 Tests) 2.6 Qualifying Relative Test (4 Tests) 2.7 SSN, ITIN & Residency Status

3 Part 1, Chapter 3: Wages & Employee Compensation

3.1 W-2 Income & Withholding 3.2 Employee vs. Independent Contractor 3.3 1099-NEC, 1099-MISC & 1099-K Reporting 3.4 Fringe Benefits (Taxable vs. Non-Taxable) 3.5 Stock Options (ISO vs. NQSO) 3.6 Special Categories (Clergy, Military, Foreign)

4 Part 1, Chapter 4: Interest, Dividends & Other Income

4.1 Taxable vs. Tax-Exempt Interest 4.2 US Savings Bonds & OID 4.3 Ordinary vs. Qualified Dividends 4.4 Schedule B Requirements 4.5 Rental & Royalty Income Basics 4.6 Alimony, Gambling & Other Income 4.7 Cancelled Debt & Form 1099-C 4.8 Net Operating Loss (NOL)

5 Part 1, Chapter 5: Capital Gains & Property Transactions

5.1 Capital vs. Non-Capital Assets 5.2 Cost Basis Calculation 5.3 Inherited & Gifted Property Basis 5.4 Short-Term vs. Long-Term Gains 5.5 Capital Gains Tax Rates (0%, 15%, 20%) 5.6 Netting & the $3,000 Loss Limit 5.7 Wash Sales & Related Party Rules 5.8 Sale of Primary Residence (Section 121) 5.9 Installment Sales (Form 6252) 5.10 Like-Kind Exchanges (Section 1031)

6 Part 1, Chapter 6: Adjustments to Income

6.1 Educator Expenses & HSA Contributions 6.2 Self-Employment Tax Deduction 6.3 IRA Contributions (Traditional) 6.4 Student Loan Interest Deduction 6.5 Alimony Paid (Pre-2019 Divorces) 6.6 Other Adjustments & New OBBBA Deductions (Tips, Overtime, Auto Loan, Senior Bonus)

7 Part 1, Chapter 7: Deductions (Standard & Itemized)

7.1 Standard Deduction by Filing Status 7.2 Medical & Dental Expenses (7.5% Floor) 7.3 State & Local Taxes (SALT $40K Cap) 7.4 Mortgage Interest Deduction 7.5 Charitable Contributions 7.6 Casualty & Theft Losses 7.7 QBI Deduction (Section 199A)

8 Part 1, Chapter 8: Tax Calculation & Credits

8.1 Tax Tables & Rate Schedules 8.2 Alternative Minimum Tax (AMT) 8.3 Self-Employment Tax Calculation 8.4 Child Tax Credit & Additional CTC 8.5 Earned Income Tax Credit (EITC) 8.6 Education Credits (AOC & LLC) 8.7 Child & Dependent Care Credit 8.8 Other Credits (Saver's, Premium Tax)

9 Part 1, Chapter 9: Retirement Accounts & Social Security

9.1 Traditional vs. Roth IRA 9.2 401(k), 403(b) & TSP Basics 9.3 SEP-IRA & SIMPLE IRA 9.4 Required Minimum Distributions (RMDs) 9.5 Early Withdrawal Penalties & Exceptions 9.6 Social Security Taxation

10 Part 1, Chapter 10: Specialized Individual Returns

10.1 Estate Tax (Form 706) 10.2 Gift Tax (Form 709) 10.3 Foreign Income (Form 2555) 10.4 FBAR & FATCA Reporting 10.5 Farm Income (Schedule F) 10.6 Disaster Area Rules

11 Part 2, Chapter 11: Business Entity Types

11.1 Overview of Entity Types 11.2 State Law vs. Tax Classification 11.3 Entity Selection: Reasonable Comp & QBI 11.4 Form 8832 & Rev. Proc. 2009-41 11.5 LLC Deep Dive: Spouses & EINs 11.6 Changing Status: The 60-Month Rule

12 Part 2, Chapter 12: Starting a Business

12.1 Hobby vs. Business (Profit Motive) 12.2 Employer Identification Number (EIN) 12.3 Tax Year Selection 12.4 Recordkeeping Requirements 12.5 Statute of Limitations 12.6 Related Party Transactions 12.7 Start-Up Costs, Entity Choice & OBBBA Business Changes (2025)

13 Part 2, Chapter 13: Worker Classification & Payroll

13.1 Employee vs. Independent Contractor 13.2 Common Law Test (Behavioral, Financial, Relationship) 13.3 Statutory Employees & Non-Employees 13.4 Form 941 & Payroll Deposits 13.5 Trust Fund Recovery Penalty 13.6 FUTA & Unemployment Taxes

14 Part 2, Chapter 14: Accounting Methods & Income

14.1 Cash vs. Accrual Method 14.2 Hybrid Methods & Changes 14.3 Inventory & COGS 14.4 Gross Receipts & Income Recognition 14.5 Constructive Receipt 14.6 Form 1099 Reporting Requirements 14.7 §163(j) Business Interest Expense Limitation 14.8 §174 Research & Experimental Expenditures

15 Part 2, Chapter 15: Depreciation & Asset Treatment

15.1 MACRS Basics & Recovery Periods 15.2 Mid-Month, Mid-Quarter, Half-Year Conventions 15.3 Section 179 Expense Deduction 15.4 Bonus Depreciation 15.5 Listed Property Rules 15.6 Amortization of Intangibles 15.7 Depletion 15.8 Disposition of Business Assets

16 Part 2, Chapter 16: Business Deductions

16.1 Ordinary & Necessary Test 16.2 Business Travel Expenses 16.3 Business Meals (50% Limitation) 16.4 Business Use of Vehicle 16.5 Home Office Deduction 16.6 Business Interest Limitation (163(j)) 16.7 Business Bad Debts

17 Part 2, Chapter 17: Business Credits & Fringe Benefits

17.1 General Business Credit Overview 17.2 R&D Credit & Disabled Access Credit 17.3 Small Employer Health Insurance Credit 17.4 Fringe Benefit Rules 17.5 Cafeteria Plans (Section 125) 17.6 Achievement Awards & Other Benefits

18 Part 2, Chapter 18: Sole Proprietorships

18.1 Schedule C Overview 18.2 Calculating Net Profit/Loss 18.3 Self-Employment Tax (Schedule SE) 18.4 Estimated Tax Payments 18.5 Hobby Loss Rules

19 Part 2, Chapter 19: Partnerships

19.1 Partnership Formation 19.2 Partner's Basis Calculation 19.3 Form 1065 Overview 19.4 Schedule K-1 (Partner's Share) 19.5 Guaranteed Payments 19.6 Partnership Distributions 19.7 At-Risk & Passive Activity Rules 19.8 Partnership Termination & Liquidation

20 Part 2, Chapter 20: C Corporations

20.1 Form 1120 Overview 20.2 Corporate Tax Rate (21%) & CAMT 20.3 Accumulated Earnings Tax 20.4 Dividends Received Deduction 20.5 Earnings & Profits (E&P) 20.6 Corporate Distributions, Dividends & Stock Redemptions 20.7 §351 Transfers, §1032, §1202 QSBS & Other Corporate Provisions 20.8 Corporate Liquidation

21 Part 2, Chapter 21: S Corporations

21.1 S Election Requirements (Form 2553) 21.2 Form 1120-S Overview 21.3 Shareholder Basis Calculation 21.4 Reasonable Compensation 21.5 S Corporation Distributions 21.6 Built-In Gains Tax & Termination

22 Part 2, Chapter 22: Specialized Business Returns

22.1 Trusts & Estates (Form 1041) 22.2 Simple vs. Complex Trusts 22.3 Distributable Net Income (DNI) 22.4 Tax-Exempt Organizations (Form 990) 22.5 Retirement Plans (Form 5500) 22.6 Qualified Retirement Plans Overview 22.7 Farm Taxation 22.8 Rental Real Estate Activities

23 Part 3, Chapter 23: Practice Before the IRS

23.1 What is Practice Before the IRS? 23.2 Who Can Practice (Full Rights) 23.3 Limited Practice Rights (AFSP, Unenrolled) 23.4 Special Relationships (Family, Employees) 23.5 PTIN Requirements 23.6 Circular 230 Overview 23.7 Office of Professional Responsibility (OPR)

24 Part 3, Chapter 24: Becoming & Maintaining EA Status

24.1 Two Paths to EA (Exam vs. IRS Experience) 24.2 Application Process (Form 23) 24.3 Background & Compliance Checks 24.4 Renewal Requirements (Form 8554) 24.5 Continuing Education Requirements 24.6 Inactive Status & Termination

25 Part 3, Chapter 25: Practitioner Duties (Circular 230)

25.1 Due Diligence Requirements 25.2 Knowledge of Client's Omission 25.3 Conflict of Interest Rules 25.4 Fee Requirements (Contingent, Unconscionable) 25.5 Advertising & Solicitation Rules 25.6 Tax Return Position Standards 25.7 Written Advice Standards 25.8 Sanctions & Penalties for Violations

26 Part 3, Chapter 26: Power of Attorney & Authorization

26.1 Form 2848 (Power of Attorney) 26.2 CAF (Centralized Authorization File) 26.3 Form 8821 (Tax Information Authorization) 26.4 Third-Party Designee 26.5 Signing Returns for Taxpayers 26.6 Client Confidentiality & Privilege 26.7 Representing Clients in Audits (Examination) 26.8 Appealing IRS Decisions 26.9 Collection Representation

27 Part 3, Chapter 27: Legal Authority & Research

27.1 Hierarchy of Tax Authority 27.2 Internal Revenue Code 27.3 Treasury Regulations 27.4 Revenue Rulings & Procedures 27.5 Court Cases & Precedent 27.6 Statutes of Limitations

28 Part 3, Chapter 28: Specific Representation Issues

28.1 Trust Fund Recovery Penalty (TFRP) 28.2 Innocent Spouse Relief (Form 8857) 28.3 Injured Spouse Allocation (Form 8379) 28.4 Penalty Abatement (FTA & Reasonable Cause) 28.5 Taxpayer Advocate Service (TAS) 28.6 Freedom of Information Act (FOIA)

29 Part 3, Chapter 29: Final Review & Exam Strategy

29.1 Exam Structure & Logistics (2026-2027) 29.2 The "Clock" of Representation (Master Deadlines) 29.3 Ethics vs. Law (Sanctions & Penalties) 29.4 Final Mock Review & Exam Strategy

30 Part 3, Chapter 30: Filing Process & E-File

30.1 E-File Requirements (The "More Than 10 Returns" Rule) 30.2 ERO Responsibilities 30.3 EFIN & Application Process 30.4 Form 8879 (Signature Authorization) 30.5 Record Retention & Data Security (WISP) 30.6 Preparer Penalties (Filing Specific)

2.7 SSN, ITIN & Residency Status

Key Takeaways Explain This Topic AI

SSN format is XXX-XX-XXXX; ITIN format is 9XX-7X-XXXX or 9XX-8X-XXXX (always starts with 9, 4th/5th digits are 70-88 or 90-99)

2025 rules: CTC and ACTC require a valid SSN for each qualifying child and for the taxpayer (on a joint return, one spouse; the other needs an SSN or ITIN); EITC requires valid SSNs for the taxpayer, spouse and each qualifying child claimed; for 2025, AOTC and the Premium Tax Credit still accept either SSN or ITIN

ITINs expire if not used on a federal tax return for 3 consecutive years; ITINs issued before 2013 follow separate expiration schedules

Resident alien status requires meeting either the Green Card Test OR the Substantial Presence Test (31 days current year + 183-day formula)

Dual-status aliens are taxed as residents for part of the year and nonresidents for the remainder, with special filing rules and restrictions

Last updated: October 2026

Taxpayer identification numbers and residency status are fundamental concepts for federal income tax purposes. The type of identification number a taxpayer holds affects their ability to claim credits, while residency status determines how their income is taxed. Understanding these rules is essential for serving clients who are immigrants, nonresident aliens, or have family members without Social Security Numbers.

Social Security Numbers (SSN)

What is an SSN?

A Social Security Number (SSN) is a 9-digit number issued by the Social Security Administration (SSA). The format is XXX-XX-XXXX (e.g., 123-45-6789). SSNs are required for:

  • Filing federal tax returns
  • Claiming tax credits and deductions
  • Employment eligibility verification
  • Opening bank accounts and applying for credit

Who Can Get an SSN?

The SSA issues SSNs to individuals who fall into these categories:

  • Category SSN Eligibility
  • U.S. Citizens Eligible at birth or naturalization
  • Permanent Residents Eligible (Green Card holders)
  • Work-Authorized Aliens Eligible while authorization is valid
  • Students/Exchange Visitors Eligible if authorized for employment
  • Certain Nonimmigrants Eligible with valid work authorization

SSN vs. Work Authorization: An SSN may be issued with or without work authorization. Cards issued without work authorization are marked "NOT VALID FOR EMPLOYMENT" - these SSNs cannot be used to claim the Earned Income Tax Credit.

SSN Requirements for Tax Returns

Every taxpayer, spouse (on a joint return), and dependent claimed on a federal tax return must have a valid SSN or ITIN. Key requirements:

  • Taxpayer SSN - Required on Form 1040 (or ITIN if not SSN-eligible)
  • Spouse SSN - Required on joint returns
  • Dependent SSN - Required to claim someone as a dependent

Due Date Requirement: For certain credits, the SSN must be issued on or before the due date of the return (including extensions) . For calendar year 2025 returns, this is generally October 15, 2026.

NEW for 2025 (OBBBA - Permanent): The Child Tax Credit (CTC) and Additional Child Tax Credit (ACTC) require each qualifying child and the taxpayer to have a valid SSN issued by the return due date including extensions. On a joint return, only one spouse needs a valid SSN; the other spouse must have an SSN or ITIN. The Earned Income Tax Credit (EITC) separately requires valid SSNs for the taxpayer, the spouse on a joint return, and each qualifying child claimed.

Identity Protection PIN (IP PIN)

What is an IP PIN?

An Identity Protection Personal Identification Number (IP PIN) is a 6-digit number that helps prevent identity theft on tax returns. When you have an IP PIN, it must be included on any federal tax return you file.

Key IP PIN Facts for 2025

  • Feature Details
  • Length 6 digits
  • Who can get one Any taxpayer with an SSN or ITIN
  • Validity period One calendar year (new PIN issued annually)
  • Requirement Must be used on ALL federal returns (current, prior year, amended)
  • Sharing Only share with IRS and trusted tax preparer
  • How to Obtain an IP PIN
  • Online (fastest) - Through IRS Online Account at irs.gov

Form 15227 - For taxpayers with income below $79,000 (individual) or $158,000 (MFJ) who cannot verify identity online

In-person - At a Taxpayer Assistance Center with two forms of ID

Exam tip: The IRS will never call, email, or text to request your IP PIN. Requests for IP PINs are a common fraud tactic.

Individual Taxpayer Identification Numbers (ITIN)

What is an ITIN?

An Individual Taxpayer Identification Number (ITIN) is a tax processing number issued by the IRS to individuals who:

  • Are not eligible for an SSN , AND
  • Need to file a federal tax return or be listed on a return
  • ITIN Format

ITINs have a specific format that distinguishes them from SSNs:

Format: 9XX-7X-XXXX or 9XX-8X-XXXX

  • Position Rule
  • First digit Always 9
  • 4th-5th digits 70-88 or 90-92, 94-99 (center digits identify it as ITIN)
  • Other digits Any number 0-9

Examples:

  • Valid ITIN: 9 12- 78 -1234
  • Valid ITIN: 9 00- 70 -5678
  • NOT an ITIN: 123-78-4567 (doesn't start with 9)

Who Needs an ITIN?

  • Category Examples
  • Nonresident aliens Required to file a U.S. tax return
  • Resident aliens Not eligible for SSN (certain visa categories)
  • Dependents Spouse or children of U.S. citizens not eligible for SSN
  • Spouses on joint returns Nonresident spouse electing to file jointly
  • Students/Scholars Certain F, J, M, Q visa holders
  • How to Apply for an ITIN

File Form W-7 (Application for IRS Individual Taxpayer Identification Number) with:

Completed Form W-7 - Signed by applicant or authorized representative

Supporting documents - Passport (best option - proves both identity and foreign status) OR combination of documents proving identity and foreign status

Federal tax return - Attach Form W-7 to the front of the tax return

Processing Options:

  • Method Documents
  • Mail to IRS Original documents or certified copies
  • Certified Acceptance Agent (CAA) CAA reviews originals, applicant keeps documents
  • IRS Taxpayer Assistance Center Bring originals for in-person verification

Processing Time: 7 weeks typically; 9-11 weeks during tax season (January 15 - April 30) or for overseas applications.

ITIN Expiration Rules

ITINs can expire in two ways:

1. Non-use Expiration:

An ITIN expires if not used on a federal tax return for 3 consecutive tax years .

Example: If an ITIN was last used on a 2020 tax return, it expired on December 31, 2023 (after 3 years of non-use: 2021, 2022, 2023).

2. Pre-2013 ITIN Expiration Schedule:

ITINs issued before 2013 have already expired or follow specific expiration schedules based on the middle digits:

  • Middle Digits Status
  • 70, 71, 72, 73, 74, 75, 76, 77, 78, 79 Expired
  • 80, 81, 82, 83, 84, 85, 86, 87, 88 Expired
  • 90, 91, 92, 94, 95, 96, 97, 98, 99 (if issued before 2013) Expired

Renewal: Expired ITINs must be renewed by submitting Form W-7 with supporting documentation before filing a tax return.

SSN vs. ITIN for Tax Credits

The type of taxpayer identification number directly impacts credit eligibility. This is a high-priority exam topic .

Credit Eligibility Comparison

Credit SSN Required? ITIN Accepted? Notes

Earned Income Tax Credit (EITC) YES - taxpayer, spouse, AND all qualifying children (work-authorized SSN) NO SSN must authorize employment

Child Tax Credit (CTC) YES - taxpayer AND child need valid SSNs by the due date NO for the child; a joint-return spouse may have an ITIN OBBBA 2025: on a joint return only one spouse needs a valid SSN

  • Additional Child Tax Credit (ACTC) YES - filer AND child NO Same as CTC
  • Credit for Other Dependents (ODC) No YES $500 credit for dependents without SSN
  • American Opportunity Credit (AOTC) Yes YES Student can have SSN or ITIN
  • Lifetime Learning Credit (LLC) Yes YES Student can have SSN or ITIN
  • Premium Tax Credit (PTC) Yes YES Taxpayer can have SSN or ITIN
  • Child and Dependent Care Credit Yes YES For the dependent being cared for
  • Key Rules by Credit

Earned Income Tax Credit (EITC):

  • Everyone on the return must have a valid SSN: taxpayer, spouse, AND all qualifying children
  • The SSN must be "valid for employment" - SSNs marked "NOT VALID FOR EMPLOYMENT" do not qualify
  • If only the taxpayer has a valid SSN (no qualifying children with SSN), they may claim the childless EITC

Child Tax Credit (CTC) / Additional Child Tax Credit (ACTC) - POST-OBBBA 2025:

The taxpayer (on a joint return, at least one spouse; the other needs an SSN or ITIN) AND the qualifying child must each have a valid SSN issued by the return due date (including extensions)

A return with no valid-SSN filer cannot claim CTC/ACTC starting 2025 (the new OBBBA SSN requirement); an ITIN spouse filing jointly with a spouse who has a valid SSN is not barred

Children without SSNs still cannot qualify; they MAY qualify for the Credit for Other Dependents (ODC) - worth $500

Maximum 2025 CTC: $2,200 per qualifying child (OBBBA permanent + inflation); refundable portion (ACTC) up to $1,700 per child

Example: Maria has two children. Her son Carlos has an SSN; her daughter Elena has an ITIN.

  • Carlos qualifies for up to $2,200 Child Tax Credit (2025 post-OBBBA)
  • Elena does NOT qualify for CTC but qualifies for $500 Credit for Other Dependents
  • Total potential credits: $2,700
  • Residency Status for Tax Purposes

Tax residency is different from immigration status. A person can be a nonresident for immigration purposes but a resident for tax purposes, or vice versa.

Three Tax Residency Categories

  • Status Who Qualifies Taxation
  • U.S. Citizen Born in U.S., naturalized, or born abroad to U.S. citizen parents Worldwide income
  • Resident Alien Meets Green Card Test OR Substantial Presence Test Worldwide income
  • Nonresident Alien Does not meet either test U.S.-source income only
  • Green Card Test

The Green Card Test is straightforward:

You are a resident alien for tax purposes if you are a lawful permanent resident (Green Card holder) at any time during the calendar year.

Key Points:

  • Residency starts on the first day you are present in the U.S. as a lawful permanent resident
  • Status continues until administratively or judicially terminated, OR you voluntarily abandon it
  • Abandonment requires filing Form I-407 with USCIS or a U.S. consular officer

A Green Card holder who has been a resident for 8 of the last 15 years may be subject to expatriation tax upon giving up status

Substantial Presence Test

If you don't have a Green Card, you may still be a resident alien if you meet the Substantial Presence Test .

The Two Requirements:

1. 31-Day Requirement: You must be physically present in the U.S. for at least 31 days during the current year.

2. 183-Day Formula: You must be present for at least 183 days during a 3-year period using this weighted formula:

  • Year Calculation
  • Current year Count ALL days present
  • First prior year Count 1/3 of days present
  • Second prior year Count 1/6 of days present
  • Formula: Current year days + (1/3 x first prior year days) + (1/6 x second prior year days) >= 183

Example Calculation:

Alex was present in the U.S. for:

  • 2024: 120 days
  • 2023: 120 days
  • 2022: 120 days

Calculation for 2024:

  • 2024: 120 days x 1 = 120
  • 2023: 120 days x 1/3 = 40
  • 2022: 120 days x 1/6 = 20
  • Total: 180 days (less than 183)

Alex does NOT meet the Substantial Presence Test for 2024.

Days NOT Counted:

Certain days of physical presence are excluded:

  • Excluded Days Example
  • Commuting from Canada/Mexico Daily border crossers
  • Transit days (less than 24 hours) Connecting flights
  • Crew members of foreign vessels Working on foreign ships

Medical condition days Unable to leave due to illness developed in U.S.

Exempt individual days Students, teachers, diplomats (see below)

Exempt Individuals:

These individuals do NOT count their days of presence for the Substantial Presence Test:

Category Exemption Period

Students (F, J, M, Q visas) First 5 calendar years in the U.S.

  • Teachers/Researchers (J visa) 2 years within any 6-year period
  • Foreign government-related individuals Diplomats, employees of international organizations
  • Professional athletes Temporarily in U.S. for charitable sports events
  • Closer Connection Exception

Even if you meet the Substantial Presence Test, you may be treated as a nonresident alien if ALL of the following apply:

  • You were present in the U.S. for fewer than 183 days in the current year
  • You maintained a tax home in a foreign country throughout the year

You had a closer connection to that foreign country than to the U.S.

  • You timely file Form 8840 (Closer Connection Exception Statement for Aliens)
  • Dual-Status Aliens

A dual-status alien is someone who was both a resident alien AND a nonresident alien during the same tax year. This typically occurs in the year of arrival or departure.

When Dual-Status Occurs:

  • Situation Status
  • Arrival year Nonresident before arrival, resident after
  • Departure year Resident before departure, nonresident after
  • Green Card obtained mid-year Nonresident before, resident after
  • Green Card abandoned mid-year Resident before, nonresident after

Dual-Status Filing Requirements:

Step 1: Determine your status on December 31:

  • If resident on 12/31: File Form 1040 as primary return
  • If nonresident on 12/31: File Form 1040-NR as primary return

Step 2: Attach a statement:

  • Write "Dual-Status Return" on the primary form
  • Attach a statement (or the other form) showing income for the other period
  • Write "Dual-Status Statement" on the attached document

Dual-Status Restrictions:

Benefit Available?

  • Standard deduction NO (must itemize)
  • Head of Household status NO
  • Joint return NO (see exception below)
  • Education credits NO for nonresident period
  • EITC NO
  • Exception: Nonresident Spouse Election

A dual-status alien (or nonresident alien) married to a U.S. citizen or resident alien may elect to be treated as a resident for the entire year under IRC Section 6013(g) or (h). This allows:

  • Filing a joint return with the spouse
  • Using the standard deduction
  • Accessing all credits for which otherwise eligible

Trade-off: The electing spouse's worldwide income becomes subject to U.S. taxation for the entire year, and FBAR/FATCA reporting requirements apply.

First-Year Election

A taxpayer who doesn't meet the Green Card Test or Substantial Presence Test in the current year may still elect to be treated as a resident for part of the year if:

They are present in the U.S. for at least 31 consecutive days in the current year

They are present for at least 75% of the days from the start of that 31-day period through year-end (with up to 5 days of absence treated as present)

They meet the Substantial Presence Test in the following year

This is called the First-Year Choice and results in dual-status treatment for the election year.

Summary Comparison Table

  • Category SSN ITIN
  • Issued by Social Security Administration IRS
  • Format XXX-XX-XXXX 9XX-7X-XXXX or 9XX-8X-XXXX

Eligibility U.S. citizens, permanent residents, work-authorized aliens Those not eligible for SSN but required to file

  • Work authorization May or may not authorize work Never authorizes work
  • EITC eligible Yes (if work-authorized) No
  • CTC/ACTC eligible (child) Yes No
  • Education credits Yes Yes
  • Expiration No expiration Expires after 3 years of non-use
  • Exam Tips
  • ITIN format - Remember: starts with 9, 4th-5th digits are 70-88 or 90-99
  • EITC is strict - Everyone (taxpayer, spouse, qualifying children) needs work-authorized SSN
  • CTC child requirement - The CHILD must have SSN; parents can have ITIN
  • Education credits are flexible - SSN or ITIN is acceptable
  • Substantial Presence formula - Current year (100%) + prior year (1/3) + 2nd prior year (1/6) >= 183
  • Students are exempt - F, J, M, Q visa students don't count days for first 5 years
  • Dual-status = no standard deduction - Must itemize, cannot file jointly (unless electing full-year residence)