Why Should Everyone File Taxes Regardless of Immigration Status?

Regardless of your immigration status, if you have earned any kind of income, whether in cash or by check, you must disclose it to the IRS.

Why Should Everyone File Taxes Regardless of Immigration Status?

This is the time of year when all U.S. taxpayers, including non-residents, must file their taxes. Despite the fact that we frequently press “skip” after 5 seconds, change the channel, or turn the page, many queries arise: “I don’t have a social security number; should I still file?” “Would sharing my personal information with the IRS have a negative impact on me?” “Is there any advantage to filing taxes?” or “If I do submit my taxes, what procedures should I take to ensure that they are done correctly?”

We’d be delighted to address these questions if you could spare a few minutes with Equity Taxation It’s critical that you understand the questions. Only then will you be able to make an informed, well-informed decision that benefits you and your family.

I haven’t finalized my immigration status in the United States; would filing my taxes have a negative impact on me?

There is nothing to fear when you file your taxes correctly and on time. The IRS establishes that the information on your tax return must remain confidential and should not be shared with anyone including some government entities, except for a few exceptions. Following the principles established in this law, the Taxpayer Bill of Rights also establishes that each taxpayer, regardless of their immigration status, has the right to privacy, which means that when you file your taxes the Internal Revenue Service (IRS) will not investigate more than necessary. By filing your taxes, you are complying with the law. And as we all know, in any aspect of life, we feel better and sleep better when we are following the law, or in this case with the IRS.

What are the advantages of filing?

You may be eligible for a variety of perks. Assume you are a salaried employee who paid taxes throughout the year. It is common for us to pay more taxes than we owe. Filing your taxes is the only way to get what you deserve. In addition, regardless of your immigration status, you may be eligible for various tax credits For the 2021 tax year, the Kid Tax Credit (CTC) is worth up to $3,000 per qualified child over the age of six and up to $3,600 every qualifying child under the age of six. This credit will be available to families with children under the age of 17. In addition, for the year 2021, the entire credit is totally refundable. Even if you don’t owe any taxes, a refundable tax credit can result in a tax refund.even if you don’t have any taxes due.

You may have already begun receiving a monthly advance payment of up to $300 for each child under the age of six and up to $250 for each child aged six and older. Instead of receiving this credit as part of your 2022 refund, these payments are made in advance and reflect a portion of the tax year 2021 Child Tax Credit, so keep that in mind while filing your taxes.

Although the child must have a social security number to qualify for this credit, you as a taxpayer can claim it even if you are not eligible for one, as long as you have gotten an Individual Taxpayer Identification Number (ITIN) from the IRS before the deadline to submit your taxes. Another criteria is that you spend more than half of the year in your primary residence in the United States.

USA Immigration Status

The Credit for Other Dependents up to $500 and the American Opportunity Tax Credit up to $2,500 per eligible student are two other credits that you can take advantage of even if neither you nor your dependent is eligible for a social security number. However, you will need an ITIN to claim these credits.

Beyond financial incentives, there are other reasons to file your taxes, regardless of your immigration status. One of the conditions for starting the naturalisation process to become a permanent resident is to be able to demonstrate that you have been a person of good moral character for a length of time stipulated by immigration law. One approach to demonstrate that you meet that criterion is to offer proof that you have been appropriately and timely filing your taxes.

What procedures should I take to submit taxes if I don’t have a social security number?

A personal identification number is required by the IRS on tax returns. The majority of taxpayers can do so by using their social security number. What if, however, you are not eligible for a social security number? The IRS has been distributing individual tax identification numbers (ITINs) to people who are not qualified for a social security number since 1996, recognizing this scenario. This number is obtained by filling out the W-7 form, which is expected to take 6-10 weeks to process. Don’t panic if you don’t have your ITIN yet; the IRS permits you to send your tax return along with your W-7 form and the documents that verifies your identification at the same time. This is especially useful for people who are filing their taxes for the first time.

Another crucial step is to have paperwork to back up your claims for income and expenses on your tax return. The majority of these documents come from your employer, financial institution, or, in certain situations, the government. Simply keep them safe and have them on hand when it comes time to file your taxes.

What if you work for yourself and run your own company?

In this instance, you must keep detailed records of your income and expenses throughout the year. This may appear to be a lot of labour, but you need not be concerned. Equity Taxation Self-Employed will ask you a few easy questions about yourself and your business, then help you find the industry-specific tax deductions you’re entitled to so you can file with confidence. When you use QuickBooks Self-Employed, you can keep track of your revenue, costs, and mileage all year long. The information from your business may then be exported to your Equity Taxation Self-Employed tax return, saving you time and effort.

In conclusion, you should not be frightened to file your taxes, regardless of your immigration status. Remember that you can get your tax questions addressed from the comfort of your own home with Equity Taxation. Our Equity Taxation Live tax specialists are now accessible for limitless support throughout the year, in English , at no additional cost. You have the option of receiving specialised guidance, having your return evaluated, or completely handing over your taxes. All from the convenience of your own home.