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One W2 has an ITIN and another one has a random SSN

sabiduria
Level 2

This is for the same client. So that tells me that he is an  authorized non-citizen resident. I put the information as it is on the W2s. The question will be, how is supposed to be done for this scenario? 

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itonewbie
Level 15

These are called illegal or undocumented aliens.  Terms for tax resident status are precise and defined under §7701.  That's why the terms you used are confusing.

If your client provided a fake or stolen SSN to the employer, he/she will lose the credit for withholding because the IRS will not be able to match anything on the W-2 with your client's return to be filed with an ITIN.

Although employers should use valid SSN on W-2 and filing one with ITIN would trigger an error, income tax withholdings can at least be identified with your client's ITIN and a credit can be claimed on the return.  The same, however, cannot be said for FICA and FUTA as these withholdings will be held in a suspended account for reconciliation.

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itonewbie
Level 15

To be able to answer your question, please define "authorized non-citizen resident" and "random SSN".

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Still an AllStar
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sabiduria
Level 2

well, people who are in the US and are not authorized to work use any random SSN to work. That's why they need an ITIN to fill their taxes.  

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itonewbie
Level 15

These are called illegal or undocumented aliens.  Terms for tax resident status are precise and defined under §7701.  That's why the terms you used are confusing.

If your client provided a fake or stolen SSN to the employer, he/she will lose the credit for withholding because the IRS will not be able to match anything on the W-2 with your client's return to be filed with an ITIN.

Although employers should use valid SSN on W-2 and filing one with ITIN would trigger an error, income tax withholdings can at least be identified with your client's ITIN and a credit can be claimed on the return.  The same, however, cannot be said for FICA and FUTA as these withholdings will be held in a suspended account for reconciliation.

---------------------------------------------------------------------------------
Still an AllStar

View solution in original post