Why Paying Taxes is Important to your Immigration Status
Under the vocalization of our current president, many believe that undocumented individuals do not pay taxes for the work that they do here. However, this is a myth immigrants, undocumented and documented, can and do pay taxes as well; it is in their absolute best interest to do so.
The Institute of the Taxation and Economic Policy, a think tank of Washington, DC, suggests that roughly half of the undocumented workers living in the US file income tax returns. In 2015, IRS data shows that the agency received about 4.4 million income tax returns from individuals who do not have a Social Security number, that of which includes the population from undocumented immigrants.
Should you pay taxes?
If you are a documented immigrant, the answer is common sense. As you are documented and live in the US with a paper trail, it is in your best interest to file taxes. Note that as a Visa holder, with exception to certain visas, you may not have to file taxes as you do not reside here or visit for employment.
If you are an undocumented immigrant, the answer is less logical. Many believe that as they are in hiding, the action of stating a financial paper trail would be harmful to that cause. However, please be aware that each agency is focused on its own goals. The Department of Homeland Security addresses the immigration fluctuations in the US and the Internal Revenue Service insures that every individual working pays taxes owed to the government regardless of the source of income. Lawfully paying taxes will not increase your chances of deportation, only help you in the future.
Why is paying taxes in my best interest?
Regardless of documentation or documented status of the immigrant, one of the main reasons to file taxes is the same; that doing so would prevent future damage to potential immigration application in the future. The United States government recognizes that paying taxes each year and not having outstanding tax owed to the IRS as signs of good moral character, an element need showing in many immigration requests.
Good moral character is defined that the person is lacking serious criminal issues in his or her past , and that the person generally fulfills his or her obligations under the law. As a green card holder with a lack of good moral character, your request to be a US citizen could be denied, that you could be stopped from reentering the US from a trip abroad. As a undocumented individual with a lack of good moral character, your claim to a U Visa (victim of a crime), VAWA claim (victim of domestic violence), or a request of waivers of inadmissibility for the unlawful time in the United States could all potentially fail. In Immigration Court, during deportation proceedings, an element to being removed from the US is evidence of having good moral character.
How do I pay my taxes?
Paying as a documented immigrant, one would use his social security number. As a undocumented immigrant, without a social security number, you would need to apply for an ITIN (Individual Tax Identification Number) and use such to file taxes. The exceptions are very important: that the ITIN is not work authorization or proof that you are in the US legally; and tax information of a ITIN recipient is legally protected and cannot be shared with the Department of Homeland Security or Immigration and Customs Enforcement. Getting an ITIN will not increase chances of deportation.
Paying taxes is just a part in a showing of good moral character, however, a part none the less. As an immigrant, documented or otherwise, paying taxes can only help you in your aim to stay in the US. Not paying taxes and even worse, owing the US tax money, will not do you any favors.
Disclaimer: The information provided here is of a general nature and may not apply to any specific or particular circumstance. It is not to be construed as legal advice nor presumed indefinitely up to date. We strongly encourage parties with Immigration issues to seek the advice of a licensed Immigration Attorney. To schedule a consultation today, contact Pham Law.
