News & Insights

1. What Is the Difference Between a Tax ID (ITIN) and an SSN?

Both an Individual Taxpayer Identification Number (ITIN) and a Social Security Number (SSN) are used for tax reporting in the U.S., but they serve different purposes and are issued under different circumstances:

Social Security Number (SSN):

• Issued by the Social Security Administration (SSA).
• Primarily intended for U.S. citizens, lawful permanent residents, and certain noncitizens authorized to work in the U.S.
• Used for employment, accessing certain benefits, and filing taxes.
• Only those with legal work authorization, such as employment-based visa holders or those with an EAD (Employment Authorization Document), can obtain an SSN.

Taxpayer Identification Number (ITIN):

• Issued by the Internal Revenue Service (IRS).
• Designed for individuals who are not eligible for an SSN but need to file U.S. taxes.
• Commonly issued to dependents, foreign nationals, or those ineligible for work authorization but still required to report income or claim refunds.

Key Takeaway: If you do not have work authorization, you can apply for an ITIN to fulfill tax obligations. However, an ITIN cannot be used to work legally or access Social Security benefits.

2. Can I Invest in the Stock Market Without a Work Permit?

Yes, you can invest in the stock market in the U.S. even if you do not have a work permit. The ability to invest is not tied to employment authorization. Here’s what you need to know:

Brokerage Account Requirements:

• You need to provide an SSN or ITIN to open a brokerage account for tax reporting purposes.
• Many brokerage firms accept ITINs from noncitizens or individuals without work authorization.

Tax Implications:

• Investment income (e.g., dividends, interest, capital gains) must be reported on your tax return.
• Ensure you comply with IRS regulations to avoid issues with your immigration status.

Legality:

• Investing does not count as unauthorized employment, so it will not conflict with your asylum application or work authorization status.

3. Additional Considerations for Asylum Applicants

• If you plan to apply for an Employment Authorization Document (EAD) after 150 days of filing your asylum application, you will likely become eligible for an SSN, which could simplify financial processes like investing.
• Always ensure your tax filings are accurate and up-to-date to avoid complications with your immigration case.