If are you ready to know everything concerning illegal immigrants then this is the right article for you.
Illegal immigrants are legally obligated to file U.S. tax returns and pay taxes, even when they’re paid under the table with cash.
Moreover, most people do this because they intend to apply for U.S. citizenship at some point. A history of making tax payments can be helpful, but complying with the legal obligation to pay taxes can be challenging.
Here’s what you need to know concerning payment of taxes if you’re an illegal immigrant.
READ MORE: Everything You Ever Wanted to Know About Illegal Immigration
How Illegal Immigrants Pay Taxes Without a Social Security Number?
Table of Contents
The tax identification number is mandatory to pay taxes. As most common identification number used to pay taxes is the Social Security Number.
Moreover, illegal immigrants must not qualify for SSNs. Only the groups of immigrants for the SSN, depend on their circumstances:
- Lawful permanent residents (green card holders).
- People granted asylum(asylees).
- Refugees are people that have a certain kind of visa that allows them to work in the UK.
- People that naturalized and became United State citizens.
An illegal immigrant or another immigrant not in one of these categories will likely not be able to get the SSN.
Illegal Immigrant Can Apply for an ITIN
The individual taxpayer identification number or ITIN is the nine-digit tax processing number that the IRS Issues to the person to pay federal taxes.
However, the IRS issues ITINs to people who need a similar document to the SSN. The U.S. government’s tax agency, the IRS, gives ITIN numbers to foreign nationals working in the U.S. and payment of taxes.
Also, you can apply using the IRS online website or a certified acceptance agent to submit your application for a fee. You can also use ITIN numbers for other purposes.
For instance, with the ITIN, the illegal immigrant will have the identification number that will help them to establish their identity to apply for a bank account credit card, mortgage, or business loan.
Remember that an ITIN does not legally authorize a person to work in the U.S. According to the IRS, this number is available for “certain none resident aliens, their spouses, and dependents that can’t get a social security number.”
Steps For Illegal Immigrant to File Taxes
First, is to get the tax identification number also known as an Individual Taxpayer Identification Number (ITIN).
You can apply for the ITIN by filing Form W-07 with the IRS.
When the ITIN, you must file the federal income tax return.
Even if you did not earn enough money, you can require to file the return, it is still recommended that you do so.
This is because filing a return is the way to get a refund of the taxes that were withheld from your paychecks during the year.
Moreover, to file the federal income tax return you will need to use Form ITR. This form will list your total income for the year and any deductions or credits you qualify for.
When they file your return, you will wait patiently until the IRS processes it. This process can take up to several months.
Then the IRS processes your return, you will receive a message from the IRS stating whether or not you owe any money. You will need to pay this amount immediately if you do owe money.
Moreover, several options are available for you that can’t pay your tax bill in full. You can set up a payment plan with the IRS, or you may be able to get a loan from a private company.
Finally, in case all this fails, you may be able to declare bankruptcy.
READ MORE: Illegal Immigrant - An Overview
Why Do Illegal Immigrants Typically Not Paying Taxes?
There are a few reasons for immigrants that don’t always pay taxes. Firstly, many illegal workers get paid under the table in cash, which means they don’t without taxes from their paychecks.
Moreover, it means that if they pay into Social Security and Medicare through taxation but do not reap the benefits from those programs, it’s not attractive for them.
When Do Illegal Immigrants Typically Pay Their Taxes?
Many illegal immigrants pay rent or own homes, which means they are paying property taxes. However, illegal workers often buy goods and services like everyone else, this means they also pay sales taxes.
What Will Happen If an Illegal Immigrant Uses A Fake SSN?
Employers are legally responsible for hiring individuals authorized to work in the U.S. However, according to the IRS, employers can face stiff monetary penalties when they fail to follow immigration and taxation guidelines.
Sometimes the employment, the employer verifies the person’s eligibility to work in the U.S. by filing Form I-9 and getting a copy of the employee’s social security card.
Moreover, those that hire illegal immigrants pay them wages and deduct federal and payroll taxes, which they deposit and report to the Social Security Administration and the Internal Revenue Service.
If the social security number doesn’t match the employee’s name on the W-2, one or both agencies notify the employer. The employer can either correct the error or be subject to civil penalties.
These immigrants should not use a fake or someone else’s social security number. If convicted of identity theft, they can face jail time, deportation or jeopardize their future legal status.
READ MORE: Do Illegal Immigrants Pay Taxes?
Conclusion
The illegal Immigrant filing a tax return is required for many things. It will help you become a citizen also it will demonstrate your good faith effort towards the country.
