Which statement is false regarding Individual Taxpayer Identification Numbers (ITIN)?

The statement that an ITIN does not indicate ineligibility for a Social Security Number is false because an ITIN is specifically designed for tax purposes for individuals who do not qualify for a Social Security Number (SSN). Individuals who have ITINs are typically non-resident aliens or foreign nationals who are required to file U.S. taxes but do not have the legal permission to work in the country, which is thereby linked to the issuance of an SSN.

An ITIN serves as a way for these individuals to fulfill their tax obligations and does not grant any immigration status or rights to work. Therefore, it is crucial to note that while possessing an ITIN does not directly mean one is ineligible for an SSN, it commonly implies that the person cannot obtain an SSN due to their immigration status.

The other statements correctly outline the limitations of an ITIN: it does not authorize work, does not provide eligibility for Social Security benefits, and does not qualify a dependent for the Earned Income Tax Credit. Understanding the purpose and limitations of an ITIN is essential for recognizing its role in the U.S. tax system.