An Individual Taxpayer Identification Number (ITIN) is a nine-digit number issued by the Internal Revenue Service (IRS). It is used for federal tax purposes when someone does not qualify for a Social Security Number. Many international students, researchers, and dependents need an ITIN to file a tax return, report income, or claim tax treaty benefits.
The ITIN often becomes necessary for students and researchers when receiving a scholarship, fellowship grant, or other grant. Portions of these awards may count as taxable income. Without a taxpayer identification number (ITIN), it is challenging to meet filing requirements, obtain refunds, or ensure proper withholding. Understanding these rules is essential to staying compliant while pursuing academic opportunities in the United States.
This guide explains everything you need to know about ITIN for scholarships and fellowship income. You’ll learn who needs one, how to apply, which documents are required, and how to avoid common problems. Whether you are filing your first federal tax return or renewing an ITIN, this article provides a step-by-step roadmap to help you stay on track.
An Individual Taxpayer Identification Number (ITIN) is a nine-digit number created by the Internal Revenue Service (IRS) for people who must meet tax obligations but do not qualify for a Social Security Number. It looks similar to an SSN but always begins with the number nine. The ITIN allows individuals to file a federal tax return, report income, and claim certain tax benefits.
For more information, you can visit the IRS official ITIN page.
Not everyone who receives financial support for education will need an Individual Taxpayer Identification Number (ITIN). The requirement depends on your status, the type of award, and whether the income must be reported to the Internal Revenue Service (IRS). Understanding eligibility helps ensure that students, researchers, and dependents comply with U.S. tax rules.
For more background on how scholarships and fellowships are treated for tax purposes, review IRS Topic No. 421.
Many international students and researchers qualify for tax relief through agreements between their home countries and the United States. These tax treaties often reduce the taxable amount of a scholarship or fellowship grant, making it essential to understand how treaty benefits interact with an Individual Taxpayer Identification Number (ITIN).
Understanding these rules helps students and researchers avoid overpaying taxes while complying with IRS requirements.
Applying for an Individual Taxpayer Identification Number (ITIN) may seem complicated, but breaking it into steps makes the process easier. This guide explains when to use Form W-7, what documents to prepare, and how to submit your application for approval.
The IRS provides exceptions for students and researchers who receive scholarships or a fellowship grant. You may qualify under Exception 2(b) if you claim treaty benefits or under Exception 2(c) if not. These categories determine whether you must attach a federal tax return or provide supporting documentation.
Form W-7 is the official application for an ITIN. You must provide personal details, visa information, and the reason for needing a taxpayer identification number (ITIN). Check the appropriate boxes, sign the form, and keep copies for your records.
You must provide proof of both identity and foreign status. A valid passport is the most common document, but other options include visas, national ID cards, and school records. If your income is from another grant, include award letters or supporting documents to confirm eligibility.
You can mail the application, use a private delivery service, or work with a Certified Acceptance Agent. Students and researchers should ensure all documents are current and match the details provided on Form W-7. Submitting incomplete or inconsistent information can delay approval.
Depending on the season, processing times vary, but you should expect seven to eleven weeks. If a portion of your scholarship or fellowship income is tax-free, please provide the appropriate documentation to ensure the IRS applies the correct rules. Once approved, your ITIN can be used to file federal tax documents and claim refunds when applicable.
When you apply for an Individual Taxpayer Identification Number (ITIN), the Internal Revenue Service (IRS) requires proof of your identity and foreign status. Providing the correct paperwork is critical because incomplete or mismatched documents are a leading cause of processing delays.
The most reliable document is a valid passport, which can serve as proof of both identity and foreign status. However, the IRS also accepts a range of alternative papers. At least one document must include a photo, unless the applicant is a dependent who qualifies for an exemption.
1. Passport
2. Visa (issued by the U.S. Department of State)
3. U.S. Driver’s License
4. Foreign Driver’s License
5. Civil Birth Certificate
6. School Records (for students under 24)
*May establish foreign status only when issued by a non-U.S. authority.
Students at a regularly enrolled body recognized by the Student and Exchange Visitor Program (SEVP) may benefit from a simplified process. Instead of mailing original documents, the school can issue a certification letter that verifies your records' status and authenticity. This reduces risk by keeping passports and other sensitive documents in your possession.
If a passport or visa has expired, the IRS will not accept it. In these cases, applicants should obtain a renewed version or request a certified copy from the issuing authority. When documents are missing, students can often use a combination of school records, medical records, or voter registration cards, as long as they clearly establish identity and foreign status.
Providing accurate and complete documentation is one of the most essential steps in securing approval for an ITIN. Careful preparation at this stage prevents rejections and keeps your application moving smoothly.
Renewing your ITIN on time avoids delays in filing your federal tax return and ensures you can claim refunds or tax credits without issues. If your Individual Taxpayer Identification Number (ITIN) has expired or is about to, here’s what you need to know and when to act.
You need to renew if you plan to file a federal tax return using an expired ITIN. If your ITIN is only used on information returns (for example, forms reporting payments like 1099), renewal is not required unless you intend to file your tax return.
If you file taxes with an expired ITIN, your return may be delayed, refunds could be held, and certain credits might be denied. To avoid these issues, constantly renew before filing. For detailed instructions, visit the IRS page.
A Certified Acceptance Agent (CAA) is authorized by the Internal Revenue Service (IRS) to help taxpayers apply for or renew an Individual Taxpayer Identification Number (ITIN). For many students and researchers, using a CAA can make the application process smoother and reduce the risks of errors or delays.
CAAs verify original documents and prepare a Certificate of Accuracy for each application. You do not need to mail valuable documents, such as passports, to the IRS. Instead, the agent reviews them, confirms their authenticity, and submits certified copies with your ITIN application.
The IRS maintains a directory of authorized CAAs across the United States and abroad. By working with a trusted professional, applicants can simplify applying for or renewing an ITIN while fully complying with tax regulations.
Despite careful preparation, ITIN applications for scholarships and fellowships can face challenges. Below are common problems and how to solve them, explained in simple terms for students, researchers, and their families.
Many students assume scholarships are always tax-free. The Higher Education Act distinguishes between qualified educational expenses and incidental expenses. Tuition and fees required for courses are usually tax-free, but costs like room, board, or optional equipment are taxable. If the amounts received for a grant exceed qualified expenses, the excess is treated as gross income.
Solution: When you report generally on your federal tax return, separate taxable from non-taxable portions. Keep receipts for equipment required or other educational activities to support your claims.
Students may overlook how Pell Grants, need-based grants, and other awards are taxed. Some grants cover services, while others do not. For example, services required under a work-college program, like teaching or research, are taxable, similar to wages.
Solution: Check the total amount listed on your award letters against IRS rules. Income linked to regular faculty duties, such as curriculum teaching, must be reported.
Incomplete paperwork remains a frequent issue. Applications missing translations, proof of attendance, or a locked padlock icon on copies submitted through secure channels may be rejected.
Solution: Before you contact the IRS, review the following conditions in your instructions. Ensure every person in the application has the correct documents, properly certified and defined by issuing authorities. Submitting accurate materials helps avoid costly delays.
After understanding the basics of a taxpayer identification number (ITIN), students and researchers should prepare a checklist to avoid missing key steps. This preparation ensures smoother processing for scholarships, fellowships, or other grants that create reporting obligations.
If you are unsure how to report scholarship income, claim treaty benefits, or determine the taxable portion of a federal tax award, it may be best to work with a Certified Acceptance Agent or tax professional. They can confirm whether your application meets IRS requirements and help you avoid delays.
Careful preparation at this stage makes your ITIN application process more efficient and less stressful.
No, you generally do not need an ITIN if your scholarship only pays for tuition, required fees, and books. These qualified educational expenses are not considered taxable income. However, if you also receive money for room, board, or incidental costs, you may need an ITIN to report that taxable portion on your federal tax return correctly.
Indeed, this is true in certain instances. Students and researchers with scholarship or fellowship income may qualify for IRS exceptions, such as Exception 2(b) or 2(c). These categories allow you to apply for an ITIN without attaching a tax return, provided you submit the proper supporting documents. Always review the current IRS instructions to ensure you meet eligibility before applying.
Processing times depend on the season and where you applied. Standard applications typically take about seven weeks, while those filed during peak tax season, from mid-January to April, may require nine to eleven weeks. International applications also take longer, often up to eleven weeks. Submitting accurate and complete documentation helps reduce delays and ensures the IRS can process your request quickly.
Upon receiving your Social Security Number, please discontinue the use of your ITIN immediately. Your SSN fully replaces the ITIN for all federal tax filings and records. Future tax returns should be filed only with your SSN. Keeping both active can cause duplicate records or processing errors, so notify the IRS to merge your account under your new number.
Yes, your spouse or dependents who are not eligible for Social Security Numbers can apply for ITINs. They often need one to be included on a joint tax return or to allow you to claim dependent-related credits. Each person must file a separate Form W-7 with original or certified documents proving both identity and foreign status before the IRS will approve.
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