Do Undocumented Immigrants File Taxes? What You Need to Know
Every April, millions of Americans file their taxes but do illegal immigrants file tax returns? If so, how do illegal immigrants file taxes? We'll answer your questions!
Immigrants and taxes
Immigrants of any legal status do, in fact, pay US taxes. In 2019, US immigrants paid more than $330 billion in federal income taxes and more than $492 billion in total taxes, including state, local, and sales taxes. As sales taxes are paid at the point of sale for many items, everyone buys, even immigrants who don't work in the US pay them.
Social Security numbers and ITINs
Social Security numbers are used to file taxes. But only citizens are eligible for a Social Security number, so how do undocumented immigrants file taxes? With an ITIN. ITIN stands for Individual Taxpayer Identification Number and is issued by the Internal Revenue Service (IRS) to identify taxpayers who do not have a Social Security number.
You can qualify for an ITIN if you are:
An undocumented immigrant without legal status in the US
A non-resident living outside the US who receives income from holding investments or owning a business in the US
An international student who qualifies as a resident
A spouse or dependent of a legal permanent resident, US citizen, or foreign national in the US on a temporary visa
Those who need an ITIN include:
Nonresident aliens required to file a US tax return
US resident alien filing a tax return
Spouse or dependent of a resident alien or US citizen
Spouse or dependent of a nonresident alien visa holder
Nonresident alien claiming a tax treaty benefits
Nonresident alien professor, student, or researcher filing a US tax return or claiming an exemption
To obtain an ITIN:
Fill out a W-7 application form and submit it to the IRS with your completed tax return
Submit documentation verifying identity and foreign status
Once the IRS approves the application, the ITIN will be sent via mail
There is no fee to apply for or receive an ITIN, and the process takes between 7 and 11 weeks.
Filing taxes
If you are an undocumented worker earning money in the US, you are legally required to pay taxes on your income if you make more than your standard deduction, which is currently $12,950 for a single person and $25,900 for a married couple filing jointly, or you are self-employed and earn more than $400.
You should still file a tax return even if you're being paid in cash. It's illegal not to, and filing taxes can make it easier to get citizenship or legal residency. Owing taxes does not necessarily disqualify someone from becoming a citizen, but it can reduce the likelihood.
Filing your taxes will not put you on Customs Enforcement's (ICE) radar. The IRS has strict non-disclosure laws with other branches of the government. Your information won't be given to ICE or any other law enforcement agency unless that agency has a court order.
Immigrants follow the same procedures to file their taxes as native or naturalized citizens. If you have an employer, you'll file a Form 1040 and Schedules 1-3. If you're self-employed, you'll file Schedule C and Schedule SE.
You can fill these forms out by hand and mail them in along with a check for any taxes you may owe, or use an online service like TurboTax or a service like H&R Block. The deadline to file taxes is in April, usually around the 15th of the month.
Learn with Upwardli
Like the ITIN, Upwardli was created to help immigrants navigate the U.S. financial system! Upwardli has dozens of resources to help teach you everything from how credit scores work to how to build credit when you have a thin credit file. Think of Upwardli as your roadmap to U.S. personal finance!