How to Apply for an ITIN as a Canadian

An Individual Taxpayer Identification Number (ITIN) is a US tax processing number issued by the IRS to individuals who have a US filing obligation but are not eligible for a Social Security Number (SSN). For Canadians, the most common reasons to need an ITIN are: filing a US non-resident return to report US-source income (rental property, business income, employment income), claiming a treaty benefit on a US return, or being included on a spouse’s US return under the IRC 6013(g) election.

The application is Form W-7, and in most cases it must be filed along with a federal tax return. The process is not complicated, but it has specific requirements that trip people up, primarily around identity documentation.

Who needs an ITIN?

You need an ITIN if all three conditions are met:

1. You have a US tax filing obligation or need to be identified on a US tax document
2. You are not eligible for a Social Security Number (you are not a US citizen, do not have a green card, and do not have US work authorization)
3. You do not already have an ITIN

Common Canadian scenarios requiring an ITIN:

• You own US rental property and need to file a US non-resident return (Form 1040-NR) to report rental income and claim deductions
• You sold US real property and need to file to report the gain (or claim a refund of FIRPTA withholding)
• You have US-source business income (you are a sole proprietor or partner providing services in the US)
• Your US-citizen or US-resident spouse is filing jointly and electing to treat you as a US resident under IRC 6013(g)
• You are claiming a treaty benefit that requires a US return (e.g., treaty-reduced withholding on US income)
• You need to be listed on a US tax form as a dependent, spouse, or other party

You do NOT need an ITIN if:

• You are eligible for an SSN (you have a green card, you have US work authorization through a visa like TN, H-1B, L-1, etc.). Apply for an SSN instead; the IRS will reject a W-7 application from someone who is SSN-eligible.
• You only need to provide a W-8BEN to a US payer (the W-8BEN accepts a foreign tax identification number like your Canadian SIN; you do not need an ITIN for W-8BEN purposes alone, though having one can simplify things).

How to apply: the three routes

Route 1: mail the application with your original passport

Complete Form W-7. Attach it to your federal tax return (1040-NR, etc.). Mail both to the IRS ITIN Operation in Austin, TX, along with your original, valid passport.

The IRS will review the application, process the return, issue the ITIN, and mail your passport back. Processing time is 7-11 weeks, and your passport is out of your hands during that period. If you need your passport for travel during that window, this route does not work.

Mailing address: Internal Revenue Service ITIN Operation P.O. Box 149342 Austin, TX 78714-9342

Route 2: apply in person at an IRS Taxpayer Assistance Center

Bring Form W-7, your tax return, and your original identity documents to an IRS Taxpayer Assistance Center (TAC). The IRS agent reviews your documents in person and returns them to you on the spot. You do not surrender your passport.

The catch: there are no IRS TACs in Canada. You would need to visit one in the US (most major US cities have one). For Canadians near the border, this can work. For others, Route 3 is more practical.

Route 3: use a Certifying Acceptance Agent (CAA)

A Certifying Acceptance Agent is a person or entity authorized by the IRS to verify identity documents for W-7 applications. The CAA reviews your original passport, certifies copies, and submits the application to the IRS with the certified copies. You keep your passport the entire time.

CAAs include certain CPAs, enrolled agents, and organizations authorized by the IRS. Some CAAs are located in Canada. Your cross-border CPA may be a CAA or may work with one.

This is the recommended route for most Canadians: you keep your passport, the CAA handles the submission, and the processing time is the same 7-11 weeks.

Form W-7: what goes on it

Reason for applying (Box a through h): most Canadians check box (a) (“Nonresident alien required to get ITIN to claim tax treaty benefit”) or box (h) (“Other”) with an explanation. If you are filing a 1040-NR because you have US rental income, check (a) or the applicable box for your filing reason. If you are being included on a spouse’s joint return, check (d) (“Spouse of U.S. citizen/resident alien”).

Identity documents: the simplest option is a valid passport. A passport serves as both identity and foreign status documentation (it proves who you are and that you are a foreign national). If you do not have a passport, you need a combination of documents from a specific list (national identification card, US or foreign driver’s license, birth certificate, etc.), and the requirements become more involved.

Tax return: the W-7 must be submitted with a federal tax return, unless you qualify for an exception (certain treaty benefits, third-party reporting requirements, or mortgage interest deduction). For most Canadians, the return is being filed because you have US-source income, so you have a return to attach.

Supporting statement: if you are claiming a treaty benefit, include the relevant treaty article and a brief statement of the benefit being claimed.

ITIN renewal

ITINs expire if they are not used on a federal tax return for three consecutive years, or if they were issued before 2013 and have not been renewed. If your ITIN has expired, you renew it by filing Form W-7 again with the same documentation (no need to reattach a tax return if you are renewing only).

Check whether your ITIN is current before filing season. An expired ITIN on a return can delay processing and refunds.

Common mistakes

Filing W-7 without a tax return. Unless you qualify for a specific exception, the W-7 must accompany a return. If you send a W-7 without a return, the IRS will reject it.

Applying for an ITIN when you are SSN-eligible. If you have or are eligible for an SSN (through work authorization, green card, or citizenship), the IRS will reject the ITIN application. Apply for an SSN through the Social Security Administration instead.

Sending uncertified copies of documents. If you are mailing the application (Route 1) and do not want to send your original passport, you need copies certified by the issuing agency (the Canadian passport office, not a notary). A notarized copy is not the same as a certified copy from the issuing agency. This is why the CAA route is simpler: the CAA certifies the copies for you.

Not converting amounts to USD. The tax return attached to the W-7 must report all amounts in US dollars. Canadian-source income must be converted using the appropriate exchange rate.

What should I do next?

Determine whether you need an ITIN (do you have a US filing obligation and no SSN?). If yes, decide on your route: CAA is the recommended option for most Canadians. Gather your passport, prepare the tax return that the W-7 will accompany, and submit. If you have a cross-border CPA, they can handle the W-7 as part of the return preparation.

• Can I file jointly with my non-resident Canadian spouse?, one of the reasons you might need an ITIN
• I’ve never filed a US return from Canada, if you are a US citizen who needs an SSN, not an ITIN
• IRS Streamlined procedures, if you are coming into compliance for multiple years

This guide is general information, not tax advice for your specific situation. Which points apply, and how, depends on your facts.