Money & Debt

Note: The Internal Revenue Service (IRS) signed an agreement with the Department of Homeland Security (DHS) to provide information about undocumented immigrants who have filed documents like tax returns with the IRS to DHS in an effort to assist with deportations. It is recommended that you speak with an immigration lawyer about your specific immigration and tax situation.

The Internal Revenue Service (also referred to as the IRS) requires all immigrants who work in the US to pay taxes on their income. You must pay income tax even if you are an undocumented immigrant and not in the US lawfully. If you are an undocumented immigrant, it may be a crime to work in the US and not pay taxes on your income. 

If you work in the US you are required to file taxes. You may be eligible for refunds of the federal and state taxes taken out of your paycheck. You can only get these refunds if you file taxes.

Overview

• Undocumented immigrants are required to pay federal income taxes.
• In order to pay federal income taxes, an undocumented immigrant must file what is called a federal income tax return.
• An undocumented immigrant must have an individual tax identification number (an ITIN) to file a federal income tax return.
• The IRS operates Taxpayer Assistance Centers where you can receive in-person assistance with preparing the documents necessary to apply for an ITIN.
• The IRS also maintains the Volunteer Income Tax Assistance (VITA) program that offers free tax help to people who need assistance with preparing their income tax returns.

Filing your taxes

Individual Tax Identification Number (ITIN)

In order to file your taxes as an undocumented immigrant, you will need an IRS individual tax identification number (an ITIN). An ITIN is a 9-digit number issued by the IRS to individuals who are required for federal tax purposes to have a U.S. taxpayer identification number but who do not have and are not eligible to receive a Social Security Number (an SSN).

The IRS maintains a website titled “How do I apply for an ITIN?”. There you will find more details about how to obtain an ITIN.

Generally, you must use Form W-7 to apply for an ITIN. You may also use this form to renew an existing ITIN that is expiring or that has already expired.

Supporting documentation for form W-7

See this this table from the IRS that explains what sort of documentation must be submitted with your Form W-7 to obtain an ITIN.

The IRS also maintains a frequently asked questions page titled ITIN Documentation Frequently Asked Questions (FAQs). If you would like to receive in person assistance with preparing the documentation necessary to submit a Form W-7, you have the option to schedule an in-person appointment at an IRS Taxpayer Assistance Center.

Federal Income Tax Return

The IRS maintains a website titled “How to file your taxes: step by step” where taxpayers can view detailed instructions on how to file a federal income tax return. Generally, an individual taxpayer should use either a Form W-2 or Form 1099 provided by their employer (or whoever pays the taxpayer to work) to complete a Form 1040, which is the form for a U.S. individual income tax return. 

There are other forms that may be required to file an income tax return, and this guide does not provide comprehensive instructions on how to do so. Please be sure to review the instructions to all IRS forms when completing an individual income tax return.

The IRS maintains the Volunteer Income Tax Assistance (VITA) program that offers free basic tax return preparation to qualified individuals. Generally, a qualified individual is:

• Someone who makes $64,000 or less a year,
• A person with a disability,
• A person who speaks limited English.

VITA services are free and are a reputable source for preparing tax returns. All VITA volunteers who prepare returns must receive and pass tax law training that meets or exceeds standards maintained by the IRS.

Using false information to obtain work

It is illegal to use false information to find or obtain work. Any income obtained using false information must still be reported on your taxes. You will not be investigated for crimes or reported to immigration agencies because you reported illegal income.