Foreign Nationals with 30% Tax Withholding on 1042S/1099 – You need US Tax ID to reclaim a refund.

ITIN – US TAX ID For Foreign Person

ITIN – US TAX ID For Foreign Person

What is an US TAX ID OR ITIN?

ITIN stands for Individual Tax Identification Number which is a U.S Tax Id for Foreign Nationals who are not eligible to apply for Social Security Number [SSN] in the USA. The ITIN is used mainly for the reporting of income to the Internal Revenue Service, filing tax returns, and claiming any US excess tax paid via tax reclaim. For more information and a list of who requires an ITIN?

Common Category of ITIN application for United States Income reporting. 

If you are a foreign person[Non-US Citizen or resident of any other  country citizenship and non-US passport holder] who does not have a Social Security Number issue previously and you are received income from United states based sources:

Common United States income reporting for foreigners includes:

  1. For 1099B/1042S – Capital gains exemption reporting for the foreign person and excess federal tax withheld refund claim to be claimed with 1040NR tax filing.
  2. For 8805  – Received by foreign partners with excess federal tax withholding refund claim to be claimed with 1040NR tax filing.
  3. Celebrity sports person with a one-off performance on an event or for Royalty income treaty-based declaration for writers, filmmakers, and YouTubers.
  4. Contractors on short-term work in the Visa who are not eligible for SSN and need to claim the treaty-based compensation declaration.
  5. Received Form 1099G/1042S Gambling winnings with tax refund claim with the tax return. For more information on the Gambling winning tax treaty position please refer to our earlier blogs.
  6. Unclaimed US property [Massachusetts state] etc with stocks and shares claim based on the share certificates and estate claim.
  7. Form 1098 – USA Mortgage interest reporting to the IRS and expense claim.
  8. USA-based property rental income declaration even if it’s rental loss. Even if it’s a loss it’s highly recommended to file a 1040NR tax return to carry forward the losses.
  9. Received Form 8288A FIRPTA tax withholding when the USA-based property is sold. Don’t miss out on the claim, For more information on this please refer to our earlier blog.
  10. For US stock investors who received a Form 1099 or Form 1042S with 30% tax or incorrect excess tax withheld and need to reclaim it or complete Form W8BEN.
  11. Form 1099R – 401K Pension distribution with excess tax withheld and to reclaim the USA and foreign country tax treaty position.
  12. TIAA Pension, Fidelity, Charles Schwab – 401K distribution to the beneficiary of deceased US person.

Our team specializes in international expatriate U.S. personal tax return service. If you need assistance with ITIN Renewal/US 1040 filing for refund claim/FATCA Compliance work/FBAR FINCEN114 Filing, ITIN/ Form W7 Application/E.I.N./Form W8BENE or Certified Acceptance Agents [C.A.A.] services/1040NR U.S. tax filing for refund claim of excess 1042S / 8288A/ 8805/ W2/ 1099. We are happy to assist our clients in a timely, efficient, and cost-effective way

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