If you are a Canadian earning income from U.S. sources, investing in U.S. property, freelancing for American clients, or planning to file taxes jointly with a U.S. spouse, you may need an ITIN Number issued by the IRS.

The U.S.–Canada Tax Treaty provides Canadians with significant benefits, such as reduced withholding tax rates on dividends, royalties, and interest. However, you cannot claim these treaty benefits without an ITIN.

At House of Bookkeepers, an IRS-Certified Acceptance Agent (CAA), we help Canadian applicants apply for and obtain ITINs securely — without mailing passports to the United States.

What Is an ITIN?

An ITIN is a nine-digit tax processing number (format: 9XX-XX-XXXX) issued by the IRS to individuals who:

  • Must file or report U.S. taxes.

  • Are not eligible for a U.S. Social Security Number (SSN).

What ITIN is NOT:

  • Not a U.S. work permit.

  • Not an immigration status.

  • Not a substitute for SSN.

Who in Canada Needs an ITIN?

Here are the most common cases where Canadians apply for an ITIN:

  • Freelancers and Digital Workers

Canadian freelancers or contractors working with U.S. companies and platforms (like Upwork, Fiverr, Amazon, PayPal, Stripe, or AdSense) may face a 30% default withholding tax. With an ITIN, you can file a U.S. tax return and use the tax treaty to reduce or reclaim that tax.

  • Property Investors

Selling or renting U.S. real estate triggers FIRPTA (Foreign Investment in Real Property Tax Act) withholding — typically 15% of the gross sale price. An ITIN is required to file a tax return and claim refunds of overpaid amounts.

  • Filing Jointly with a U.S. Spouse

If you are married to a U.S. citizen or resident, you’ll need an ITIN to be included on their tax return and access spousal tax benefits.

  • Investors in U.S. Stocks or Businesses

The U.S.–Canada tax treaty reduces withholding tax on dividends, royalties, and certain types of income. An ITIN is needed to apply these treaty benefits.

  • Responsible Party for a U.S. LLC

If you own or manage a U.S. LLC, you’ll likely need an ITIN for IRS reporting. Typical documents include:

    • Articles of Organization

    • Operating Agreement (If your LLC is multi-member, the Operating Agreement is mandatory.)

    • IRS EIN Confirmation Letter (CP 575 Notice)

Benefits of Having an ITIN

  • File U.S. tax returns legally.

  • Claim refunds for overpaid taxes.

  • Apply reduced rates under the U.S.–Canada Tax Treaty.

  • Avoid the standard 30% withholding on U.S. income.

  • Comply with FIRPTA when selling U.S. property.

  • Be included on a spouse’s or dependent’s U.S. tax return.

  • Improve financial access with U.S. banks, payment processors, and institutions (when paired with an EIN/LLC).

US-Canada Tax Treaty Benefits

Thanks to the tax treaty, Canadians enjoy reduced withholding tax rates:

  • Dividends: Reduced from 30% to 15% (or as low as 5% if owning a significant portion of shares in a U.S. company).

  • Interest: Often exempt or reduced significantly.

  • Royalties: Reduced to around 0–10%, depending on the type of royalty.

  • Students & Researchers: Certain scholarships, stipends, or fellowships may be exempt from U.S. tax.

👉 To access these benefits, you need:

  • An ITIN.

  • The correct IRS form (e.g., Form W-8BEN for investors, Form 8233 for students/researchers) provided to the U.S. payer.

How to Apply for an ITIN from Canada in 2025

Step 1: Confirm Eligibility

You need a valid U.S. tax-related reason, such as:

  • Filing a U.S. tax return for freelance income, property, or investments.

  • Claiming treaty benefits (via W-8BEN) under the US-Canada tax treaty.

  • Selling or renting U.S. real estate.

  • Filing jointly with a U.S. spouse.

Note:

If you only need to submit W-8BEN for withholding relief, you may qualify under a treaty exception and may not need to attach a U.S. tax return.

Reason for Applying Description W-7 Box to Check Tax Return Required?
Filing a U.S. tax return Reporting freelance, investment, real estate, or other U.S. income b – Nonresident alien filing U.S. tax return ✅ Yes (attach Form 1040-NR)
Claiming tax treaty benefits via W-8BEN Avoiding U.S. withholding on platforms like Amazon, AdSense, Payoneer, Stripe, Upwork a + h – Treaty benefit exception ❌ No (treaty exception category)
U.S. rental or sale (FIRPTA) Property rental income or claiming refund on FIRPTA withholding b (if filing return) OR a + h (if claiming treaty exception) Depends
Filing jointly with a U.S. spouse Foreign spouse joining U.S. tax return e – Spouse of U.S. citizen/resident ✅ Yes (joint U.S. tax return)

Step 2: Complete Form W-7

This is the official IRS ITIN application form. It must be completed accurately to avoid rejection.

Step 3: Gather Required Documents

  • Valid passport (scan copy works with a CAA; otherwise, IRS requires original or certified copy).

  • U.S. federal tax return (Form 1040 or 1040-NR), unless you qualify for an exception.

  • Supporting documents (visa, U.S. income statements, property sale contracts, scholarship letters, etc.).

Step 4: Apply Through a Certified Acceptance Agent (CAA)

With House of Bookkeepers, you don’t need to risk mailing your passport to the U.S. We verify your documents locally in Canada and submit your application directly to the IRS.

Why Use House of Bookkeepers (IRS CAA)?

  • ✅ Passport stays safe — verified locally in Canada.

  • ✅ Higher approval success rates, fewer rejections.

  • ✅ End-to-end support: W-7 form, COA, tax return, and submission.

  • ✅ Official IRS authorization (listed CAA).

  • ✅ Real-time updates until your ITIN approval letter (CP565) arrives.

  • ✅ 100% Money-Back Guarantee if rejected due to our error.

ITIN Processing Timeline in 2025

  • Standard processing: 8–13 weeks.

  • Peak season (Jan–Apr): 13–16 weeks.

  • With House of Bookkeepers: we can often retrieve your ITIN number within ~2.5 months by contacting the IRS, although the official ITIN letter (CP565) will still take the full processing time to arrive by mail.

Common Mistakes to Avoid

  • Submitting incomplete or inaccurate Form W-7.

  • Using uncertified passport copies (if not applying through a CAA).

  • Forgetting to attach a U.S. tax return (unless exempt).

  • Mailing sensitive documents through unreliable services.

  • Assuming an ITIN provides immigration or work rights (it does not).

Quick FAQs – ITIN from Canada

Q1. Can I apply for an ITIN from Canada?
Yes. With House of Bookkeepers as your IRS CAA, you can apply without mailing your passport to the U.S.

Q2. Does Canada have a tax treaty with the U.S.?
Yes. The treaty lowers U.S. withholding tax on dividends, royalties, and certain other income. You need an ITIN to apply these treaty benefits.

Q3. How will I know if my ITIN is approved?
The IRS sends Letter CP565 once your ITIN is issued. We notify you immediately.

Q4. Do I need a U.S. address?

A U.S. address is not mandatory. The IRS can mail your ITIN letter to your Canadian address (non-U.S. address) as listed on your application. However, if you have a U.S. residential address or a mail forwarding service, you may use it for convenience and faster delivery.

Alternatively, we can also receive the letter at our address and send you a scanned copy by email.

Q5. How will you verify my identity?
As part of the IRS verification process, we’ll ask you to provide a selfie of yourself holding the passport’s information page. This simple step confirms that the passport belongs to you and helps us complete your identity verification securely.

Apply with Confidence

At House of Bookkeepers, we make ITIN applications safe, fast, and reliable for Canadian applicants.

📍 IRS-Certified Acceptance Agent (CAA) – Canada Service
🌍 Website: https://www.houseofbookkeepers.com

👉 Start your ITIN application today — and unlock the benefits of compliance, refunds, and U.S.–Canada treaty savings.