Why Foreign Athletes, Trainers, and Coaches should obtain a tax number in the United States
Foreign athletes, coaches, and trainers who get paid in the United States for their services could likely benefit from having a taxation number in the United States. Having a taxation number (tax ID) could permit foreign athletes and trainers to recoup expenses if taxes are withheld from salaries or prize winnings. In addition, the tax ID could be helpful to reduce taxation liability if the International Revenue Service comes after an athlete’s money later on. In many sports such as boxing, tennis, golf, esports, and X Games related sports, taxes are often withheld before funds are paid to the athlete.
Even in sports that do not withhold taxes from prize winnings, both the IRS and USCIS can find information on prize winnings online. Failing to pay taxes could result in criminal proceedings and frustrations with obtaining a visa into the United States. Having a taxation number allows a foreign athlete to file tax returns and claim expenses incurred during training, traveling, and other related activities.
Obtaining a U.S. taxation number is different depending on the situation of the foreign athlete. If the foreign athlete does not have a visa that comes with work authorization, then the athlete must obtain an Individual Taxpayer Identification Number (ITIN). If the foreign athlete does have a visa that comes with work authorization, the athlete can obtain a social security number.
How to get an Individual Taxpayer Identification Number (“ITIN”) (visitor visa, no visa status, other visa status without work authorization):
ITIN does not provide eligibility for social security, business or earned income tax credits, and it is also not a valid form of identification outside of the tax system. To obtain an ITIN number the beneficiary must file a special tax form, along with a tax return if ready, and supporting documents to the Internal Revenue Service. The supporting documents typically have to be originals or officially certified. Official ITIN certification can occur at an IRS taxpayer assistance center or by an IRS authorized certifying acceptance agent.
How to get a social security card
Nonimmigrant visa holders must apply for a social security number while in the United States. It is best to wait 10 days while in the United States before going to the social security office to make sure that the social security office has I-94 arrival and departure records. The social security card must come to an address in the United States and usually takes three weeks. The athlete or coach should bring original passports, visa approval documents, and ideally the forms associated with the visa petition to the social security administration visit.
Benefits of the social security number that are not permitted with the ITIN include the following:
Access to social services
Pensions
Can function as identification
Can be used to obtain bank accounts and credit cards
Useful for receiving medical services
Getting a driver’s license and state identification cards
Apply for student loans
Build credit in the United States
Sherrod Sports Visas helps athletes and coaches obtain both ITIN and social security numbers on a consultancy basis and works with CPAs to submit tax returns. Do not hesitate to contact us via email at info@sherrodsportsvisas.com or call our office at 704-243-8178 for more information on ITIN and SSN numbers.