Q. What’s a Social Security Number? (and, most important, do I need one?)
A. In the UNITED STATES, a Social Security number (SSN) is a nine-digit number issued to US CITIZENS, PERMANENT RESIDENTS (GREEN CARD HOLDERS, and TEMPORARY RESIDENTS (WORKING VISA HOLDERS).
The number is issued to an individual by the Social Security Administration.
You need a Social Security number to get a job, collect Social Security benefits and receive some other government services.

Q. Does a noncitizen need a Social Security number?
A. Generally, only noncitizens authorized to work in the United States (i.e. holding a working visa) can get a Social Security number. Social Security numbers are used to report an individual’s wages to the government and to determine a person’s eligibility for Social Security benefits.
Lawfully admitted noncitizens (spouses or children of an individual holding a working visa, for instance) can get many benefits and services without a Social Security number. As an example: you do not need a number to get a driver’s license, register for school, or obtain private health insurance.

Q. When do I apply for a SSN?
A. You can apply for a SSN as soon as you enter the USA with a regular working visa

Q. What do I need to apply?
A. Copy of your passport showing your valid working visa.

Q. Where do I apply?
You may apply at any Social Security Card Center

Conclusion:
If you were born in the USA or you moved in because you were provided a working visa you are entitled to apply and obtain a SSN

 

Q. SO, WHAT IS AN ITIN?
A. An Individual Taxpayer Identification Number (ITIN) is a tax processing number issued by the Internal Revenue Service regardless of immigration status because both resident and nonresident aliens may have a U.S. filing or reporting requirement under the Internal Revenue Code.
The most common cases we run into:
• Foreign investors (Real Estate investors, for instance)
• Dependents or spouse of a U.S. citizen/resident alien
• Dependents or spouse of a nonresident alien visa holder

Q. When do I apply for an ITIN?
A. You can apply for an ITIN the first time you are required to file a return (any kind of return due to the Internal revenue Service)

Q. What do I need to apply?
A. A W7 form for each applicant reporting date of birth, address, citizenship…. AND a certified copy of the applicant/s’ passport by the issuing agency.

Q. Where do I certify my passport?
You may be able to request a certified copy of documents at an embassy or consulate. However, services may vary between countries, so we recommend that you contact the appropriate consulate or embassy for specific information.

Conclusion:
You need to apply for an ITIN if you have federal tax reporting or filing requirements and do not qualify for SSN.

Q. What is the Estimated Income tax?

A. Income tax is a pay-as-you-go tax. This means that you must pay taxes as you earn or receive income during the year

There are two ways to do it…

Withholdings

Estimated Tax

  • If you are an employee, your employer most probably withholds income tax from your payrolls and pay it in your name.
  • If you do not pay your tax through withholding (or do not pay enough) and/or,
  • If you have taxable non-wage income (business income, dividends, interests, capital gains, royalties, rents…)

Then you may need to make quarterly estimated tax payments.

Q. Why should I pay estimated tax? Is it not enough to wait and file my tax returns paying the balance due?

A. Because if you do not pay enough by the due date of each payment you may be charged a penalty even if you are due a refund when you file your tax returns.

Q. When shall I pay the estimated tax?

A. Generally, payment of estimated tax is due on: April 15, June 15, September 15 of the current fiscal year and, January 15 of the following.

Q. How much should I pay?

A. An easy way to figure out how much to pay is to take your previous year tax payments (the amount you paid when you filed your tax returns) and divided by four: take those as your quarterly installment payments and they will probably cover your tax liabilities unless you earned an unexpected income.

The alternative, (for first time filers, for instance) is to project the amount of income you expect to receive and apply Tax Rates and deductions/credits.