What is a Tax ID Number (TIN)?

The TIN is a unique number assigned to each individual taxpayer. Social Security Numbers (SSNs) are assigned to individuals, while Employer Identification Numbers (EINs) are assigned to businesses.
Social Security Numbers (SSNs) are tax identification numbers issued by the Social Security Administration in this format: XXX-XX-XXXX.
A tax identification number for an employer is also nine digits long, but it is spelled XX-XXXXXXX. The IRS assigns direct tax identification numbers to trusts, trustees, and other non-business entities.
The Individual Taxpayer Identification Number ( ITIN ), the Adoption Taxpayer Identification Number ( ATIN ), and the Preparer Taxpayer Identification Number (PTIN ) are other types of TINs.
Tax identification numbers are used by the IRS to track taxpayers. If you are filing tax-related documents, you must include their numbers when claiming benefits.

Your Social Security Number (SSN)
A social security number ( SSN ) is the most common tax identification number. SSNs are issued to US citizens, permanent residents, and certain temporary residents.
Obtaining a social security number is necessary for obtaining legal employment in the United States as well as receiving social security benefits and other government services.
In order for a parent to claim their child as a dependent for income tax purposes, the child must have an SSN; therefore, most parents voluntarily apply for the number on behalf of their children. The SSA processes applications for free, but there are also services that charge for completing applications for new parents.

ITIN (Individual Taxpayer Identification Number)
Individual Taxpayer Identification Numbers (ITINs) are issued by the IRS to certain non-residents and resident aliens, their spouses, and their dependents who are not eligible for Social Security numbers.
The ITIN format is the same as an SSN (XXX-XXX-XXXX), but it begins with a 9. An individual tax identification number can be obtained by completing Form W-7 and providing documentation to prove their residency. Some agencies, such as universities, banks, and accounting firms, help applicants obtain their ITINs.

EINs are employer identification numbers.
Corporations, trusts, and estates that must pay taxes are identified by their Employee Identification Number (EIN). In order to declare their income for tax purposes, these groups must request a tax ID number. Tax ID numbers are free and can be obtained immediately.

When the adoptive parents are unable to obtain the child’s social security number in time to complete their tax returns, the ATIN is only applicable to domestic adoptions. A child must be a US citizen or permanent resident, and the adoption must be pending.

In 2011, the IRS began requiring the inclusion of a PTIN on all tax returns. Previously, it was optional to use a PTIN. A preparer who is paid to complete all or part of another individual’s tax return must possess and use the PTIN.