Immigrants in the United States may be required to file and pay taxes, even if they do not have legal immigration status. However, this does not mean that everyone must file a tax return every year.
The Internal Revenue Service (IRS) determines tax obligations based on factors such as income, tax residency, type of employment, and the rules applicable to the tax year.
Therefore, not having a Green Card, work permit, or Social Security number does not automatically mean that a person is exempt from taxes. Nor does paying taxes grant a person permanent residence or immigration protection.
In this guide , we explain which immigrants are required to file taxes in the United States, how the ITIN works, which forms the IRS uses, and when tax history may be relevant to an immigration proceeding.
Table of Contents
Do immigrants have to file and pay taxes in the United States?
Yes, immigrants may have tax obligations in the United States regardless of their immigration status. However, the specific obligation depends on each taxpayer’s circumstances.
The IRS distinguishes between different types of income and taxpayers. A person may be required to file a federal tax return if their income reaches certain thresholds, if they earn income from self-employment, or if they are in other situations covered by tax law.
For example, certain self-employed individuals may be required to file a tax return if their net earnings from that work total at least $400, even if their total income falls below other general thresholds. There may be exceptions and special rules.
It is also possible that a person may wish to file a tax return even if they are not required to do so—for example, to request a refund of withheld taxes, if they meet the requirements.
Income limits, deductions, and credits vary depending on the tax year and family situation. For this reason, you should not use figures from previous tax returns without checking the current instructions.
The IRS offers a tool to check when you need to file a tax return.
What is the difference between tax residency and immigration status?
A key distinction is that being a tax resident does not necessarily mean having permanent residence under immigration law.
For federal tax purposes, the IRS generally distinguishes between resident and nonresident aliens. This classification determines how certain income must be reported and which tax rules apply.
Tax classification may depend on the Green Card test, the substantial presence test, tax elections, and other exceptions provided for under IRS regulations.
| Concept | What determines |
|---|---|
| Tax Resident | The treatment of income and tax obligations under IRS regulations. |
| Non-tax resident | Special tax rules, generally related to income from U.S. sources or linked to business activities in the country. |
| Legal permanent resident | Immigration status granted under U.S. law, generally evidenced by a Green Card. |
| Undocumented person | A description of an immigration status that, by itself, does not determine all tax obligations. |
What is the substantial presence test?
The substantial presence test is one of the criteria the IRS uses to determine whether a person is considered a tax resident.
Generally, it requires physical presence for at least 31 days of the current year and a weighted total of 183 days over a three-year period, counting all days of the current year and certain fractions of the two preceding years.
There are exceptions for certain days of presence, visa categories, closer ties to other countries, and other circumstances provided for in the tax rules.
Therefore, a person without a Green Card could be considered a U.S. tax resident, depending on their presence and the applicable exceptions.
You can review the criteria in the IRS’s official explanation of substantial presence.
Do undocumented immigrants have to pay taxes?
An undocumented person may be required to file a tax return if their income and circumstances meet the criteria established by the IRS.
The fact that you do not have a work permit or permanent residency does not automatically exempt you from tax obligations related to income earned in the United States.
In addition to federal income tax, individuals may be subject to other taxes, such as sales and use taxes, state taxes where applicable, or taxes related to property and economic activities.
However, not all immigrants are subject to the same taxes or required to file the same forms.
A person who receives wages, another who is self-employed, and another who earns income from abroad may have different tax situations.
What is an ITIN, and how do you apply for one?
The ITIN (Individual Taxpayer Identification Number) is a personal taxpayer identification number issued by the IRS to certain individuals who need a U.S. tax number but are not eligible to obtain a Social Security Number (SSN).
The ITIN is used exclusively for federal tax purposes.
An ITIN does not grant immigration status, does not authorize legal employment, and is not equivalent to a residence permit. Nor does it prove that a person has received protection from deportation.
How do I obtain an ITIN using Form W-7?
To apply, a person generally must:
- Confirm that you need an ITIN: There must be a federal tax purpose, and you must not be eligible for an SSN.
- Complete Form W-7: Use the current version and instructions from the IRS.
- Prepare the appropriate federal tax return: It is generally filed along with the application, unless the individual qualifies for an exception.
- Submit identification documents: originals, certified copies, or other options accepted by the IRS.
- Use an authorized method: by mail, at certain assistance centers, or through certified filing agents, when applicable.
Not everyone needs to apply for an ITIN. Those who are eligible for an SSN generally must use it for tax purposes.
The complete procedure is available in the official IRS guide to applying for an ITIN.
What forms are used to file taxes?
The appropriate form depends on the type of taxpayer and the income received during the year.
| Form | What is it for? |
|---|---|
| 1040 | Federal personal income tax return generally used by U.S. citizens and tax residents. |
| 1040-NR | Tax return for certain nonresident aliens. |
| W-2 | A document reporting wages and certain withholdings by the employer. |
| 1099 | A set of forms used to report different types of income and payments. |
| W-7 | Application for an ITIN When Tax Eligibility Exists. |
| 1040-X | Form used to amend certain prior tax returns. |
Some taxpayers must also include schedules, such as those related to self-employment, deductions, or investment income.
Income and documents must be reviewed according to the corresponding tax year. It is not always correct to use the same form as a family member or coworker.
Do you have to report income earned outside the United States?
It depends primarily on the individual’s tax residency status and the applicable tax rules.
As a general rule, U.S. tax residents are subject to federal taxes on their worldwide income, although certain exclusions, credits, or treaties may affect the outcome.
In contrast, nonresident aliens are typically subject to different rules, generally related to income from U.S. sources or income effectively connected with business activities in the United States.
In certain cases, there are also requirements to report foreign financial accounts and other international assets, separate from the income tax return.
The situation can become more complicated when a person moves to the United States during the tax year or conducts business in multiple countries.
Therefore, when there is international income, it is advisable to consult a tax professional with experience in handling international taxpayers.
Does paying taxes help you get a Green Card or citizenship?
Filing and paying taxes does not automatically grant a Green Card, citizenship, or any immigration status.
However, tax returns may be relevant as supporting documentation in certain immigration proceedings.
For example, depending on the application process, tax records may serve as evidence of income, financial history, family relationships, or specific periods of presence.
In some naturalization proceedings, USCIS may also review matters related to compliance with legal obligations, including tax-related circumstances relevant to the assessment of good moral character.
This does not mean that any debt owed to the IRS automatically results in the denial of an immigration application.
The consequences depend on the facts, the type of noncompliance, and the requirements of the specific application.
What happens if you didn’t file a tax return or owe money to the IRS?
Failing to file a tax return when you’re required to do so can result in tax consequences such as interest, penalties, demands for payment, or collection proceedings.
However, it is important to distinguish between a tax error, an outstanding debt, and intentional conduct that may constitute a crime.
Not every late tax return or tax debt automatically constitutes tax evasion or leads to deportation.
Depending on the situation, it may be necessary to file outstanding returns, correct information through an amended return, or evaluate payment options available through the IRS.
If there is also a pending immigration proceeding, it is advisable to coordinate the tax review with immigration counseling to avoid inconsistent explanations or incorrect statements.
Does the IRS share taxpayer information with immigration authorities?
Tax return information is protected by legal confidentiality provisions under Section 6103 of the Internal Revenue Code. However, the law also provides for specific exceptions to this confidentiality.
During 2025 and 2026, certain agreements and procedures for the exchange of information between the IRS and federal immigration authorities were the subject of litigation and court rulings.
For that reason, it would be incorrect to state that a taxpayer’s data is always freely shared or to promise that it can never be disclosed.
The permissible scope of a disclosure depends on the applicable laws, the procedures used, and the judicial decisions in effect.
This privacy dispute does not, in and of itself, eliminate the tax obligations of those who are legally required to file tax returns.
When there are concerns about privacy, immigration history, or personal documentation, you should seek individualized and up-to-date professional guidance.
Frequently Asked Questions About Taxes and Immigration
¿Una persona indocumentada puede declarar impuestos en Estados Unidos?
Sí. Una persona indocumentada puede tener obligaciones tributarias y presentar declaraciones cuando corresponda. Si necesita un número tributario y no es elegible para un SSN, puede reunir las condiciones para obtener un ITIN.
¿El ITIN permite trabajar legalmente en Estados Unidos?
No. El ITIN se utiliza para fines tributarios federales y no concede autorización de empleo ni modifica el estatus migratorio.
¿Todos los inmigrantes deben presentar una declaración anual?
No necesariamente. La obligación depende de la residencia fiscal, los ingresos, el tipo de actividad y las reglas tributarias aplicables al año correspondiente.
¿Pagar impuestos me ayuda a obtener la residencia permanente?
Pagar impuestos no concede automáticamente residencia permanente. No obstante, los registros tributarios pueden ser relevantes como evidencia en determinados procedimientos migratorios.
¿Tener una deuda con el IRS significa que seré deportado?
No automáticamente. Las consecuencias tributarias y migratorias dependen del incumplimiento, sus circunstancias y los requisitos legales aplicables.
¿Debo declarar ingresos que recibo desde otro país?
Puede ser necesario. Los residentes fiscales estadounidenses generalmente están sujetos a normas sobre ingresos mundiales, mientras que los no residentes tienen reglas distintas. También pueden existir créditos, excepciones y obligaciones informativas.
Legal Guidance and Official Resources
An immigrant’s tax responsibilities may differ from their immigration obligations or benefits.
Before filing a tax return, it is important to determine your tax residency and consult a tax professional if you have questions about income, ITINs, back taxes, or documentation.
At Urbina Immigration Law, we can help you understand how certain financial histories and documents may be relevant to your immigration process.
If you need to review the immigration implications of your situation, please contact our team for guidance on the next steps.
Official sources
- IRS — Check whether you need to file a tax return.
- IRS — Residency under U.S. tax law.
- IRS — Individual Taxpayer Identification Number (ITIN).
- IRS — How to Apply for an ITIN.
- IRS — Taxes for Nonresident Aliens.
- IRS — Tax Information Disclosure Laws.
Other resources
- Permanent Residency in the United States: General Options.
- Myths and Facts About Immigration to the United States.
This article provides general information on taxes and immigration; it is not intended as individual tax or legal advice. IRS rules, data disclosure policies, and immigration regulations are subject to change. Tax returns and amendments should be reviewed by a qualified professional.
