Should Undocumented Immigrants Pay Taxes?

Mar 10

There is a common misconception that undocumented immigrants do not pay taxes in the United States. However, millions of people without legal status contribute billions of dollars in federal, state, and local taxes each year. Additionally, complying with these obligations can bring future benefits.

In this article, we explain why undocumented immigrants should file taxes, how to do it, and how it can benefit you.

All Workers in the U.S. Are Required to File Taxes

Every worker in the U.S. is required to file taxes, regardless of their immigration status. This is because the tax system is based on income earned within the country, not on citizenship or legal residency.

Income Thresholds That Require Tax Filing

W-2 Workers: If your annual income exceeds $13,850 (single) or $27,700 (married).
Self-Employed Workers: If you earn more than $400 per year, you must file a tax return.

The Internal Revenue Service (IRS) does not share your information with Immigration (USCIS) or the Department of Homeland Security. The law protects taxpayer confidentiality, and your information can only be disclosed with a federal court order.

This means that filing taxes does not put your immigration status at risk.

Why Should Undocumented Immigrants File Taxes?

Besides complying with the law, there are several reasons why undocumented immigrants should file taxes:

You Could Receive a Tax RefundIf your employer withholds taxes from your paycheck, you may be able to recover some of that money when you file your tax return.
It Helps with Immigration ProcessesHaving a history of paying taxes demonstrates "good moral character," a key requirement for applications such as adjustment of status, legal residency, and other immigration procedures.
Access to Certain Tax CreditsAlthough many tax benefits are reserved for legal residents, undocumented immigrants can access:
- American Opportunity Tax Credit (for educational expenses).
- Child Tax Credit (if your child has a Social Security Number).
- Lifetime Learning Credit (for continuing education).

How to File Taxes Without a Social Security Number

Undocumented immigrants without a Social Security Number can apply for an Individual Taxpayer Identification Number (ITIN), which allows them to file taxes without needing an SSN.

Steps to Obtain an ITIN:

Complete IRS Form W-7.
Submit documents proving your identity and foreign status.
Send the application along with your tax return.

This process is safe and does not affect your immigration status.

If you have never filed taxes or need to correct past returns, you can still catch up. There are programs and tax advisors who can help you regularize your situation before starting an immigration process.

Final Thoughts

Undocumented immigrants in the U.S. are required to pay taxes, but they can also benefit from doing so. Fulfilling this responsibility can help with immigration processes, prevent legal issues, and even generate tax refunds.

Share this information! If you know someone who has questions about this topic, send them this article so they can stay informed.

Source: El Nuevo Herald

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