ITIN vs SSN: Key Differences and What You Can Do With Each

If you're in the US without a Social Security Number, you've probably encountered the ITIN—Individual Taxpayer Identification Number. Both are nine-digit numbers. Both are issued by the federal government. Both look similar on paper.

But they serve different purposes, and confusing them can lead to serious problems with employers, banks, and the IRS.

Here's exactly what each number does, what you can and can't do with it, and how to navigate the US financial system with an ITIN.

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Quick Comparison

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What Is an SSN?

A Social Security Number (SSN) is a nine-digit number issued by the Social Security Administration (SSA). It serves three main purposes:

1. Work Authorization

An SSN allows you to legally work in the United States. Employers verify your SSN to complete Form I-9 and report wages.

2. Government Benefits

Your SSN tracks your contributions to Social Security and Medicare. When you retire or become disabled, these benefits are paid based on your work history tied to your SSN.

3. Identity Verification

The SSN has become a de facto national ID number. Banks, creditors, landlords, and employers use it to verify identity and check credit.

Who Gets an SSN

• US citizens (issued at birth or citizenship)
• Permanent residents (green card holders)
• Temporary workers with valid work authorization
• Certain visa holders (H-1B, L-1, etc.)

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What Is an ITIN?

An Individual Taxpayer Identification Number (ITIN) is a nine-digit number issued by the IRS for federal tax purposes only.

Primary Purpose: Tax Filing

The ITIN exists solely to allow people to file federal tax returns when they're not eligible for an SSN. This includes:

• Non-resident aliens with US tax obligations
• Spouses or dependents of US citizens
• People receiving US income but ineligible for SSN
• Foreign investors with US assets

What ITIN Is NOT

An ITIN does not:

• Provide work authorization
• Qualify you for Social Security benefits
• Qualify you for Earned Income Tax Credit
• Grant immigration status
• Prove legal US presence

Who Gets an ITIN

Anyone with a federal tax filing requirement who is ineligible for an SSN, including:

• Non-resident aliens filing US returns
• Resident aliens without work authorization
• Dependents/spouses of visa holders
• Foreign nationals with US rental income
• Anyone required to report US income to the IRS

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Detailed Comparison

Banking

With SSN:

• Open accounts at any US bank
• No restrictions on account types
• Standard identity verification

With ITIN:

• Limited to banks that accept ITIN
• Some banks require additional documentation
• May face longer verification processes
• Available at: Bank of America, Chase, Wells Fargo, Citibank, many credit unions

Credit Building

With SSN:

• Apply for any credit card
• Standard approval process
• Credit report created automatically
• All credit bureaus recognize SSN

With ITIN:

• Limited credit card options
• Many applications rejected
• Need ITIN-friendly creditors
• Credit bureaus can track ITIN, but not all creditors report

Employment

With SSN:

• Work legally for any US employer
• Employers verify through E-Verify
• Wages reported to Social Security

With ITIN:

• Cannot be used for employment
• Using ITIN for work is illegal
• Self-employment/contractor work may be gray area (consult tax professional)

Business Formation

With SSN:

• Form any business entity
• Get EIN using online application
• Standard banking and credit access

With ITIN:

• Can form LLC/Corporation in most states
• Get EIN via fax or mail (not online)
• Build business credit through EIN
• Some business banking limitations

Taxes

With SSN:

• File Form 1040
• Claim all applicable credits
• Credits and benefits fully available

With ITIN:

• File Form 1040 (or 1040-NR for non-residents)
• Cannot claim Earned Income Tax Credit
• Cannot claim Child Tax Credit (with exceptions)
• Can claim certain treaty benefits

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What You CAN Do With an ITIN

Despite limitations, ITIN holders have significant financial options:

1. File Federal Tax Returns

The primary purpose. You can:

• Report income
• Claim deductions
• Pay taxes owed
• Receive refunds

2. Open Bank Accounts

At ITIN-friendly banks:

• Checking accounts
• Savings accounts
• CDs
• Some investment accounts

3. Build Credit

Through ITIN-friendly creditors:

• Secured credit cards
• Credit-builder loans
• Authorized user accounts
• Some unsecured cards

4. Get an EIN for Business

ITIN holders can:

• Form an LLC or Corporation
• Obtain an EIN (Employer Identification Number)
• Open business bank accounts
• Build business credit

5. Purchase Property

With ITIN, you can:

• Buy real estate
• Obtain mortgages (ITIN-friendly lenders exist)
• Own property in your name

6. Obtain Insurance

Many insurance products available:

• Auto insurance
• Renters/homeowners insurance
• Life insurance (some carriers)

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What You CANNOT Do With an ITIN

Important limitations to understand:

1. Work as an Employee

ITIN provides no work authorization. Using ITIN to work as a W-2 employee is:

• Illegal
• Tax fraud
• Immigration violation

2. Receive Social Security Benefits

ITIN contributions don't count toward:

• Retirement benefits
• Disability benefits
• Medicare

3. Claim Certain Tax Credits

ITIN holders cannot claim:

• Earned Income Tax Credit (EITC)
• Child Tax Credit (with some exceptions for resident aliens)
• American Opportunity Credit (usually)

4. Use for I-9 Employment Verification

ITIN cannot be used on Form I-9. Employers must reject ITIN for employment purposes.

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Converting ITIN to SSN

If you become eligible for an SSN later, you'll need to:

1. Apply for SSN

Visit your local Social Security office with:

• Immigration documents showing work authorization
• Identity documents
• Application form (SS-5)

2. Notify the IRS

After receiving SSN, contact IRS to:

• Link your old ITIN records to new SSN
• Combine tax payment history
• Prevent duplicate records

Write to: Internal Revenue Service Austin, TX 73301-0057

Include: Old ITIN, new SSN, copy of new SSN card

3. Update Financial Accounts

Notify all banks and creditors of your new SSN to ensure:

• Credit history transfers
• Account records update
• Future reporting uses SSN

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Common Questions

Can I have both ITIN and SSN?

Not simultaneously. If you get an SSN, your ITIN should be rescinded and records merged.

Do ITIN and SSN look the same?

Almost. Both are XXX-XX-XXXX format, but ITINs always start with 9.

Will my ITIN expire?

Yes. ITINs not used on a federal tax return for three consecutive years expire. ITINs issued before 2013 have rolling expiration schedules.

Can employers accept ITIN?

No. For employment purposes, employers must have SSN. Accepting ITIN for employment is illegal.

Can I build good credit with ITIN?

Yes, but it takes longer and requires ITIN-friendly creditors. Many ITIN holders achieve 700+ credit scores.

Does credit transfer when I get SSN?

Technically yes, but you need to proactively merge records. Contact each creditor and credit bureau.

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Strategy: Maximizing Your ITIN

If you have an ITIN, here's how to make the most of it:

Step 1: Establish Banking

Open checking and savings at an ITIN-friendly bank:

• Bank of America
• Chase
• Wells Fargo
• Local credit unions

Step 2: Build Credit

Start with what's available:

• Secured credit card
• Credit-builder loan
• Authorized user on trusted person's account

Step 3: Consider Business Formation

Form an LLC and get an EIN:

• Business credit doesn't require SSN
• Build credit through business accounts
• Access more financial products

Step 4: Maintain Tax Compliance

File taxes every year:

• Keeps ITIN active
• Builds financial history
• Prepares for potential SSN application

Step 5: Monitor for SSN Eligibility

If your immigration status changes:

• Apply for SSN immediately
• Don't wait for renewal
• Merge records promptly

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Next Steps

Understanding the difference between ITIN and SSN is essential for navigating the US financial system correctly. While ITIN has limitations, it still provides significant financial access—banking, credit building, property ownership, and business formation are all possible.

Work within the system's rules, use ITIN-friendly institutions, and you can build a strong financial foundation.

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Need help building credit with ITIN? Freedom Consulting specializes in helping ITIN holders access financial services. Book a free consultation to create your personalized strategy.

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Related: Building Credit with ITIN | Banks That Accept ITIN

Disclaimer: This guide is for informational purposes. Consult qualified immigration and tax professionals for advice specific to your situation.

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Continue Learning

This article is part of our Building Credit with ITIN: The Complete Guide for Non-Citizens guide series.

Related articles in this series:

• Best Banks That Accept ITIN for Account Opening (2025)
• Credit Cards for ITIN Holders: Complete List of Options
• ITIN Business Funding: How to Access Capital Without SSN