Getting Social Security Numbers and Individual Taxpayer Identification Numbers for You, Your Spouse, Children and Other Dependents.
One of the more common issues I've seen over the years is trying to take a personal exemption on an athlete’s tax return for his spouse and/or child when they don't have a Social Security Number (SSN). While they are relatively easy to get, it does take quite a bit of time to cut through the red tape. If you have a spouse, child, or other dependent that does not have a SSN or an Individual Taxpayer Identification Number (ITIN), now is the time to get one. If you don't get these numbers for your spouse/dependent, you will not be able to claim them as personal exemptions on your tax return and pay too much tax.
A common myth is that a player can't get a SSN for his wife because she is Canadian and doesn't have the right to work in the US. While that may be true, that is the primary purpose of the ITIN, which some people call the "Non-Working SSN". The ITIN acts as a substitute by assigning a number to those individuals otherwise not able to qualify for a SSN.
The IRS issues ITINs to foreign nationals and others who have federal tax reporting or filing requirements and do not qualify for SSNs. ITINs are for federal tax reporting only, and are not intended to serve any other purpose.
Examples of individuals who need ITINs include:
Non-resident alien filing a U.S. tax return and not eligible for an SSN
U.S. resident alien (based on days present in the United States) filing a U.S. tax return and not eligible for an SSN
Dependent or spouse of a U.S. citizen/resident alien
Dependent or spouse of a non-resident alien visa holder
So if you find yourself needing a SSN or ITIN, you should have available certain information and related documentation to complete Form W-7, the form by which you apply for the number with the IRS. This information includes the following:
Completed tax return(s) for which the ITIN is needed
Proof of identification to support your claim of foreign status and one containing your photograph (e.g. U.S. Drivers License, Civil Birth Certificate, Foreign Driver's License, U.S. State Identification Card, Voter's Registration Card, Military ID (U.S. or Foreign), U.S. Visa, Medical or School Records (dependents only).
You can apply for an ITIN by completing Form W-7. You may download the form from the IRS website at www.irs.gov or let Stone Carlie do the busy work! Whether you do it yourself or have someone else do it, it is important to take action now so it does not delay your refund at tax time.
