A federal return must include valid taxpayer identification numbers for the taxpayer, spouse (if filing jointly), and all dependents. Certain credits require specific types of identification numbers, and some credits cannot be claimed unless the required number is issued by the due date of the return, including extensions.
Taxpayer Identification Number (TIN)
A TIN may be:
- Social Security Number (SSN)
- Individual Taxpayer Identification Number (ITIN)
- Adoption Taxpayer Identification Number (ATIN)
Most taxpayers must provide an SSN. An ITIN or ATIN may be used only in specific situations.
Credits Requiring a Valid TIN
- Earned Income Credit (EIC) — taxpayer, spouse (if MFJ), and qualifying child must have a valid SSN.
- If a child qualifies but lacks an SSN, the taxpayer may still claim childless EIC if eligible.
- Child Tax Credit (CTC) & Additional Child Tax Credit (ACTC) — qualifying child must have a valid SSN.
- For MFJ, one spouse must have an SSN; the other may have an SSN or ITIN.
- Credit for Other Dependents & American Opportunity Tax Credit (AOTC) — SSN, ITIN, or ATIN allowed.
A child must have a TIN by the return due date. A later‑issued TIN cannot be used to amend the return to claim these credits.
Child Born and Died in the Same Year
If a child was born and died during the tax year and no SSN was issued:
- Enter “Died” in the SSN field
- Attach documentation showing the child was born alive
The taxpayer may claim EIC, CTC, and ACTC.
Individual Taxpayer Identification Number (ITIN)
An ITIN is issued to individuals who must file a U.S. return but are not eligible for an SSN.
Examples include:
- Nonresident aliens filing a U.S. return
- Nonresident aliens claiming treaty benefits
- Resident aliens under the substantial presence test
- Dependents or spouses of the above
- Dependents or spouses of nonresident alien visa holders
ITINs are issued regardless of immigration status.
ITIN Exceptions (No Tax Return Required)
An ITIN may be issued without a tax return for:
- Third‑party information reporting (e.g., banks)
- Withholding on wages, scholarships, or similar payments
- Mortgage interest reporting
- FIRPTA transactions involving U.S. real property
ITIN Limitations
- Does not authorize work
- Does not provide Social Security benefits
- Cannot be used to claim EIC
- A child with an ITIN cannot be a qualifying child for EIC
Applying for an ITIN
- File Form W‑7 with the tax return
- Include original identity documents or certified copies
- May apply through an IRS‑authorized Acceptance Agent
If Form W‑7 is filed on or before the return due date and the IRS issues an ITIN, it is treated as issued on time.
If an SSN application is pending, do not file Form W‑7 until the SSA denies the SSN request.
ITIN E‑File Restriction
A return cannot be e‑filed in the same year the ITIN is assigned. E‑filing is allowed starting the following year.
ITIN Expiration
An ITIN expires if not used on a federal return for three consecutive years. Renewal is required only if the ITIN will appear on a return.
Accounting Periods and Methods
Accounting Period
Most individuals use a calendar year (January 1–December 31). A fiscal year ends on the last day of any month except December.
The taxpayer selects the accounting period when filing their first return.
Cash Method
Most individuals use the cash method.
Income is reported when constructively received, meaning it is available without restriction.
Examples of constructive receipt:
- Garnished wages
- Debt paid on the taxpayer’s behalf (not a gift or loan)
- Payments made directly to a third party from taxpayer‑owned property
- Advance payments
- Checks available for deposit without restriction
Exception
Interest on Series E and EE savings bonds is reported at final maturity.
Accrual Method
Under the accrual method, income is reported when:
- The right to receive it is fixed, and
- The amount is determinable with reasonable accuracy
Receipt of payment is not required.