An Individual Taxpayer Identification Number (ITIN) is a nine-digit number issued by the IRS for individuals who need a U.S. taxpayer identification number but are not eligible for a Social Security number (SSN). If you don’t renew your ITIN on time this year (2024), it could delay your tax return
Depending on your income and filing status, you’ll generally either pay 0%, 15%, or 20% on your long-term gains. The 0% long-term capital gains tax rate applies if your taxable income is $0 to $44,625 (single filers) or $0 to $89,250 (married filing jointly).
There’s no avoiding this disclosure or payment of associated taxes—regardless of whether you receive a 1099-K, 1099-B, or 1099-MISC from a crypto exchange. Take the necessary steps to ensure you aren’t paying too little or too much. Start by reviewing how the IRS defines and taxes cryptocurrency.
Who Needs to Renew Their ITIN?
❗ Taxpayers with expiring ITINs or ITINs with the middle digits listed below need to file a Form W-7 renewal application. This applies even if you’ve used your ITIN in the last three years. The specific middle digits are 73, 74, 75, 76, 77, 81, or 82 (e.g., 9NN-73-NNNN).
❗ The IRS is sending the CP-48 Notice, “You Must Renew Your Individual Taxpayer Identification Number (ITIN) to File Your U.S. Tax Return,” to affected taxpayers. If you receive this notice but have already renewed your ITIN, no further action is needed unless another family member is affected.
❗ ITINs with middle digits 70, 71, 72, 78, 79, or 80 have expired. If you haven’t renewed these, you can do so anytime.
❗ Spouses or dependents in the U.S. should renew their ITINs. However, those outside the U.S. only need to renew if they plan to claim a tax benefit or file a tax return. Due to the suspension of personal exemptions from 2018 to 2025, there’s no need to renew ITINs solely for this purpose.
Family Renewal Option
Taxpayers can renew ITINs for their entire family at once, even if some family members’ ITINs are not expiring. This includes the tax filer, their spouse, and dependents.
Three Ways to Renew an ITIN
To renew an ITIN, complete a Form W-7 and submit the required documentation. You can:
- 1️⃣ Mail the Form W-7 with original or certified copies of identification documents to the IRS. These documents will be returned within 60 days.
- 2️⃣ Work with Certified Acceptance Agents (CAAs) who can verify identification documents and submit the ITIN application to the IRS.
- 3️⃣ Schedule an appointment at an IRS Taxpayer Assistance Center for in-person identity verification. Bring a completed Form W-7 and identification documents. Check the IRS website for more details.
⚠️ Avoid Common Errors and Delays
Federal tax returns with an expired ITIN will still be processed, but tax credits and exemptions will be disallowed. The IRS will notify you of any changes and the need to renew your ITIN. Once renewed, credits and exemptions will be restored, and refunds issued.
Common errors that cause delays include missing information or insufficient supporting documents, such as name changes. Ensure your form is complete before sending it to the IRS. Note that the IRS no longer accepts passports without a date of entry for dependents from countries other than Canada or Mexico, or for dependents of U.S. military personnel overseas. Acceptable documents to prove U.S. residency include:
- 👉 U.S. medical records for dependents under 6
- 👉 U.S. school records for dependents aged 6 to 17
- 👉 U.S. school records, rental statements, bank statements, or utility bills for dependents 18 and over
Act Now to Renew Your ITIN
Act now to renew your ITIN and avoid delays in your tax filing and refunds. Under the Protecting Americans from Tax Hikes (PATH) Act, ITINs not used on a federal tax return in the last three years, or those with specific middle digits, expired in 2018. Submit a renewal application as soon as possible.
If you have questions about ITIN renewal or need assistance, give us a call. We’re here to help ensure your tax season goes smoothly.