There is a huge misconception that illegal immigrants who are working and earning money in America don’t have to pay any taxes on the wages they earn, as they don’t have a social security number.
However, this isn’t true at all, as they still have an obligation to pay taxes just like everyone else.
Illegal immigrants may not be able to file and pay for taxes with a social security number. However, instead they can obtain a Tax ID number, which works just like a social security number, in order to file and pay for taxes.
If an immigrant wants to change their immigrant status, then having a tax ID number, to pay and file their taxes, will help show in the eyes of the law that they have a good moral character.
In this article, we will be going into more detail and discussing Tax ID numbers and illegal immigrants.
Contents
What Is A Tax ID Number?
A tax ID number can also be referred to as an Individual Tax Identification Number (ITIN). This is a tax processing number, given out by the Internal Revenue Service (IRS).
This number allows undocumented employees, including illegal immigrants, who want to fulfil their obligations such as taxes.
In addition to that, the Immigration Services are currently asking for evidence when a non-American citizen decides that they want to change their status and become a legal citizen of the country.
Therefore, the ITIN helps the US track the history of who is and isn’t paying their taxes.
Immigration courts will judge the illegal immigrant history in the country as a whole. It is seen as good moral character, when they find that the individual has been paying taxes on any income that they have been receiving while in the country.
Who Is Eligible For A Tax ID Number?
Generally, anyone who isn’t a full citizen of America, is entitled to receive a tax ID number. This includes the following:
- Illegal immigrants living in America.
- Non-US residents who live outside America but are receiving income from either investing or owning a business with the US.
- Spouses or dependents of a US citizen or foreigner on a temporary visa.
- Foreign students who qualify as a resident.
How Do Illegal Immigrants Pay Their Taxes?
If you happen to be an illegal immigrant that is working within the United States, then you must pay taxes on any income using your tax ID number.
Once you start filing and paying for your taxes, then you may be able to reap the benefits as well, that a lot of other citizens of America also enjoy.
For example, by paying your taxes every year you can show evidence that you are paying taxes, which can prevent any deportation cases. Also, it can help you qualify for future eligibility for any immigration benefits.
Legally, someone who is eligible for immigration benefits is someone who pays their taxes, and will be considered to have a good moral character. Also, it can help show proof of how many years you have been living in the United States for.
Thus, it provides evidence that you are earning an income, and that you support your country and local government by paying their taxes. These taxes are then used as funding for roads, public services etc., that everyone is able to benefit from.
Can An Illegal Immigrant Receive Tax Benefits Through Their ITIN?
As an illegal immigrant isn’t able to get a social security number, they must instead request a tax ID number, which is used so that you can pay your taxes.
However, by having a tax ID number, that individual is also able to be eligible for child tax credit as well.
With an ITIN, you can also open a bank account at any building society. With this bank account, the money that you put in can also earn you interest.
An ITIN is a very useful thing to have, but it doesn’t qualify you for all the social security benefits. Only when you become a lawful and permanent resident within the United States, and you report income through your ITIN.
In this case, you may then become eligible to have the same social security benefits that every other American benefits from. However, this is only when you become a US citizen, does this apply.
Can A Tax ID Number Prove Citizenship?
By having a Tax ID number, and using this number when you pay your taxes, it proves that you are physically in the country. However, there isn’t enough evidence alone to verify any legal presence in the country.
Alongside that, the tax ID number alone, does not qualify you for legal authorization to be able to work in the US.
Every year, you must pay your taxes, and it serves as evidence for how long you have been living within the country. It may not be able to prove residency or citizenship alone, but it is a great piece of evidence that will majorly help your case.
It shows that you earn an income and wouldn’t become a public cage if you did become a full US citizen.
Final Thoughts
For any non0US citizen, including illegal immigrants, they are not able to obtain a social security number. Instead, the quality of a tax ID number, otherwise known as an ITIN.
If an illegal immigrant is working within America, then their wages are taxable. As a result, they need to use their ITIN number, to be able to pay their taxes.
An ITIN number is incredibly important, as it allows them to pay their taxes. Which can then serve as a massive piece of evidence which can allow the individual to stay in the country and even apply for full residency.
