Welcome to the United States! As you settle in, one of the most important systems to understand is the Internal Revenue Service (IRS), the nation's tax collection agency. Fulfilling your tax obligations is not just a legal requirement; it's also a key part of establishing your financial life and demonstrating good moral character for future immigration benefits.
For immigrants, resident aliens, and non-resident aliens, the IRS determines tax liability based on residency status and income source. Compliance is mandatory and plays a role in your overall immigration standing.
help_centerWhy Immigrants Must Interact with the IRS
If you earn income in the United States, you are generally required to file a tax return with the IRS, regardless of your immigration status. This includes income from employment, self-employment, investments, and other sources. Proper tax filing is essential for maintaining legal status, applying for permanent residency (a green card), and eventually, U.S. citizenship.
badgeITIN vs. Social Security Number (SSN)
To file taxes, you need a taxpayer identification number. The type you use depends on your work authorization status.
- perm_identitySocial Security Number (SSN): Issued to U.S. citizens and individuals authorized to work in the U.S. by the Department of Homeland Security.
- pinIndividual Taxpayer Identification Number (ITIN): A nine-digit tax processing number issued by the IRS for individuals who are required to file a U.S. tax return but are not eligible for an SSN. You can apply for one using Form W-7.
descriptionKey Tax Obligations and Forms
Your specific tax obligations depend on whether the IRS considers you a "resident alien" or a "nonresident alien" for tax purposes. This is determined by the "green card test" or the "substantial presence test," not necessarily your immigration status.
- request_quoteResident Aliens: Taxed on their worldwide income, the same as U.S. citizens. They typically file Form 1040.
- travel_exploreNonresident Aliens: Taxed only on their U.S.-source income. They typically file Form 1040-NR.
- translateDocument Translation: If you have financial records, such as proof of foreign income or expenses, that are not in English, you must provide a certified English translation to the IRS if requested during an audit.
publicTax Treaties and Foreign Income
The U.S. has tax treaties with many countries to prevent double taxation—taxing the same income in both your home country and the U.S. These treaties may allow you to exclude certain foreign-earned income from your U.S. tax return. It's crucial to check if a treaty exists between the U.S. and your country of citizenship to ensure you are filing correctly and taking advantage of any applicable benefits.
Ensure Your Financial Documents are Compliant
Tax matters can be complex, especially when dealing with international income and documentation. Ensuring your financial records are clear, accurate, and properly translated is essential for correct filing and avoiding issues with the IRS.