A tax identification number is required for tax purposes by the Internal Revenue Service. Some tax identification numbers are: Social Security numbers, Employer Identification Numbers, and Individual Taxpayer Identification Numbers.
You must provide your tax identification number when filing taxes. A number identifies you to the IRS. There are three main numbers:
- Social Security Number
- Individual Taxpayer Identification Number
- Employer Identification Number
Numbers have 9-12 digits. Applying is free.
To get an Employer Identification Number, apply online or mail a form. Note: Your business may need a separate state number. The IRS uses the Employer Identification Number to identify taxpayers. Numbers are for businesses — corporations and partnerships. Most sole proprietors can use Social Security numbers instead.
An Individual Taxpayer Identification Number is for nonresident and resident aliens and others who can’t get a Social Security Number. Numbers are 9-digits, starting with 9, like Social Security Numbers. To get a number, complete a form substantiating foreign status and identity.
Is EIN and tax ID number the same?
Is my Social Security number my tax ID? For most people, yes, your tax ID is your Social Security number. Businesses have separate tax IDs called employer identification numbers. Those lacking Social Security numbers use Individual Taxpayer Identification Numbers. States issue tax IDs too.
A Tax Identification Number (TIN) refers to a nine-digit IRS number. Businesses have an extra three-digit branch code. The first nine digits identify the taxpayer.
Should I use my employer identification number (EIN) or Social Security number (SSN)? An EIN identifies business taxpayers — corporations, partnerships, and limited liability companies. Most sole proprietors can use SSNs instead of EINs.
An Individual Taxpayer Identification Number (ITIN) works for noncitizen residents and others ineligible for Social Security numbers. ITINs look like nine-digit Social Security numbers starting with 9. Applicants complete Form W-7 confirming foreign status and identity.
The IRS assigns unique tax IDs to individuals, businesses, and nonprofits. Taxpayers include IDs on documents and when claiming benefits. Lenders require Social Security numbers on loan applications too.
Businesses use tax IDs like individuals use Social Security numbers. However, some self-employed need Social Security numbers instead of employer IDs.