Do I NEED TO FILE A TAX RETURN EVERY YEAR IF I AM IN THE U.S.?

Yes.

Anyone whose income meets the tax return filing threshold, regardless of immigration status, should file a tax return to show they have complied with tax laws. Filing taxes every year also helps to document physical presence in the United States, demonstrates good moral character, and is required in some immigration proceedings.

Regardless of income type—including any cash income—all of your income must be claimed on your tax return every year.

If you have already paid federal taxes and wants a tax refund then you must file a tax return.

If you would like to claim valuable tax credits:
Earned Income Tax Credit (tax filer, spouse, and any children claimed for the credit must have a valid SSN)
Child Tax Credit and Additional Child Tax Credit (available to ITIN holders)

Will the information on my tax returns be sent to other Government Agencies like ICE?

Generally, no. The IRS is interested in collecting taxes—not immigration enforcement. There are laws in place that prohibit the IRS from sharing information collected on tax returns with individuals or other federal agencies, with very limited exceptions. (For example, the IRS can provide the Social Security Administration with information on residency status of an individual, to help that agency determine how much tax to withhold from Social Security benefits.)

How do immigrant workers file taxes without a valid Social Security Number?

Individual Taxpayer Identification Numbers (ITINs) are nine digit numbers that are used by the IRS to process the taxes of individuals without Social Security Numbers. They do not confer immigration status or work authorization. Individuals eligible for an ITIN include:
• Lawfully present immigrants who cannot obtain a valid Social Security Number
• U.S. resident aliens/nonresident aliens and
• Unauthorized immigrants
• Dependents in Mexico and Canada

How do workers apply for an ITIN?

Individuals should complete IRS Form W-7, Application for IRS Individual Taxpayer Identification
Number, and attach it to their completed federal income tax return. Applicants must also provide
original or certified copies of identity documents such as a birth certificate or an unexpired
passport. Applicants can mail their applications and supporting documents to the address listed
on the W-7, or they may apply for an ITIN in person at IRS Taxpayer Assistance Centers (TAC) or
with the help of a Certifying Acceptance Agent (CAA). CAAs and a limited number of TACs are
authorized to verify some identity documents in person. TACs are able to verify passports and
foreign identity cards. CAAs are able to provide in-person verification for primary and secondary.

How long is an ITIN valid?

ITINs previously were issued for an indefinite period. In 2015, Congress mandated that individuals who received ITINs prior to January 1, 2013 are required to renew their ITINs on a staggered schedule between 2017 and 2020. (Please see chart below). In addition, the new law states that an ITIN will expire if an individual fails to file a tax return for three consecutive years.
ITINs issued to individuals after December 31, 2012 shall remain in effect unless the individual does not file a tax return – or is not included as a dependent on the return of another taxpayer – for three consecutive years.

Can tax filers using ITINs still claim tax benefits?

Some tax benefits can be claimed with an ITIN, but some cannot. Tax filers can claim exemptions against the income that is counted for tax purposes for themselves, their spouses, and dependents, reducing or eliminating the taxes owed. In 2015, each exemption is worth $4,000. Some tax credits are available to filers using ITINs, but others require a Social Security
Number.

Who qualifies as a dependent for tax purposes?

A dependent is defined as a qualifying child or a qualifying relative (see chart below).
Dependents must be U.S. citizens, U.S. residents, U.S. nationals, or a resident of Canada or Mexico. For tax purposes, a U.S. resident is anyone who is a lawful permanent resident or meets the “substantial presence” test, defined as anyone physically present in the U.S. at least 31 days during the tax year AND a total of 183 days during the current year and preceding
two years.

Are immigrant tax filers eligible for tax credits?

Sometimes they are.

Federal Earned Income Tax Credit (EITC): refundable tax credit worth up to $6,242.
• To qualify, the tax filer, spouse, and any qualifying children claimed for the EITC must have
a valid Social Security Number.
• Federal Child Tax Credit: refundable tax credit worth up to $1,000 per qualifying child.
For the Child Tax Credit, a qualifying child must be a U.S. citizen, U.S. resident (as defined
by tax laws), or U.S. national.6
• ITIN holders are eligible to claim the Child Tax Credit. If a qualifying child does not have a
Social Security Number, the credit can be claimed by using his or her ITIN.

Federal Child and Dependent Care Tax Credit: tax credit worth up to $2,100.
• ITIN holders are eligible to claim the Child and Dependent Care Tax Credit, and must also
provide the Social Security Number or ITIN of their care provider. If a qualifying child or
dependent does not have a Social Security Number, the credit can be claimed using his
or her ITIN.

Federal Premium Tax Credit: tax credit worth up to thousands of dollars to help cover the
cost of health insurance under the Affordable Care Act, or Obamacare.
• ITIN holders may claim Premium Tax Credits for family members eligible for health coverage under the Affordable Care Act. For more information, visit https://www.nilc.org/issues/health-care/aca_mixedstatusfams/.
• Your state may also offer tax credits for families.