What is a Tax ID?

Question

And what does it do?

How do I use it?

is it free?

where do I get one?

How ofton do I need to pay it?

thanks.

Answer 1

There are 3 forms of tax identification numbers that are used to help the IRS and other tax collection agencies know who they are receiving taxes from - and who to apply benefits to.

Social Security Number - This is the main number used by most citizens of the United States.  It is issued by the Social Security Administration, not the IRS.  The IRS is allowed to use its database.

ITIN - This "Individual Tax Identification Number" is used mostly by immigrants to identify and claim dependents that are not citizens.  The IRS issues this- but needs a photo ID and another ID from the individual's country of origin.  

EIN - Employer Identification Numbers - Also known as FTINs are Federal Tax ID Numbers - these are used mostly for business purposes.  You may need one if you employ a household employee, if you have a business or if you or if you have a Trust - such as the Living Trust of a deceased taxpayer.  There is a nice IRS online application for this.

None of these cost anything - since the IRS presumes they'll be making tax money with them.  You pay taxes all through your life, but reconcile them once per year, usually before April 15th.  You may request an extention through October 15th - but have to pay the money you think you will owe by April 15th to avoid penalties.

Answer 2

According to Wikipedia, the Id comprises the unorganized part of the personality structure that contains the basic drives. The Id is unconscious by definition. The Tax id must, therefore be the part of the tax code for which there is no form.  

It does little which is why most people know nothing about it.   If you can find a use for it, let us know.  

You can buy one at WalMart.  

It should be paid biweekly.

Answer 3

It depends on what you mean by a tax ID.  

For most people, your tax id is your soc sec number.  

For some people here who are not yet citizens or for some reason cannot get a SSN, it is an ITIN.  

If you are self-employed, own a business, are an independent contractor, start a corporation, form a trust, etc. then your tax ID or the corporation or trust's tax ID is an EIN number, which you can get online at IRS gov or by downloading form SS-4 and faxing it or mailing it to the IRS.  And it is free forever.