The Basics of Filing Taxes for Immigrants

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Filing taxes isn’t just for U.S. citizens. If you are an immigrant working in the U.S., you are required to file a tax return. Of course, navigating the U.S. tax system can be a challenge—especially if this is your first time.

In this quick guide, we’ll break down the basics of filing taxes for immigrants in 2024.

Who is required to file taxes?

Anyone earning a U.S.-based income is obligated to pay taxes on those earnings. How you are taxed, depends on your resident status.

Resident aliens

If you are not a U.S. citizen, you are considered a tax resident if you meet either the green card test or the substantial presence test.

Green card test: If you are a lawful permanent resident of the United States at any time during the calendar year, you are considered a U.S. resident for tax purposes. This means the U.S. Citizenship and Immigration Services (USCIS) issued you a Permanent Resident Card, Form I-551, also known as a “green card.”

Substantial presence test: You will be considered a U.S. resident for tax purposes if you are physically present in the U.S. for at least 31 days of the current year and 183 days for the past 3 years, including the current year and the 2 years immediately before that using the following formula:

• All the days you were present in the current year, and
• 1/3 of the days you were present in the first year before the current year, and
• 1/6 of the days you were present in the second year before the current year.

Non-resident aliens

If you are not a U.S. citizen and you do not meet the green card test or substantial presence test for the calendar year, you are considered a non-resident alien. Non-residents must file a tax return if they

• Are engaged in a trade or business in the United States
• Have U.S. income that wasn’t fully taxed by the employer (i.e., insufficient tax withholding).

You must also file if you wish to claim a refund of excess withholding or to claim any tax credits or deductions.

Non-residents earning money from a trade or business are taxed at the same rate as U.S. citizens, after eligible tax deductions and credits are applied. Non-residents with other U.S.-connected income that is “fixed, determinable, annual, or periodical” is taxed at a flat 30 percent—no deductions or credits may be applied to this income.

Dual-status individuals

You are considered a dual-status taxpayer if you have been both a U.S. resident and non-resident in the same tax year. Because your tax liability is different under each tax status, you will need to file two separate returns for each. Typically, dual-status applies in the year you arrive in the U.S. and/or the year you depart.

How to file taxes as an immigrant

To file taxes as an immigrant in the U.S., you will need:

• A SSN or ITIN
• The right tax forms
• A record of your earnings outside the U.S.

Applying for a SSN or ITIN

Non-citizens can apply for a social security number when applying for an immigrant visa with the U.S. Department of State. To qualify, you must be a lawfully admitted resident.

Immigrants that do not qualify for a SSN can apply for an Individual Taxpayer Identification Number (ITIN) through the IRS when they file their taxes.

An ITIN is a nine-digit tax processing number that allows immigrants who can’t get a SSN (including lawful and undocumented immigrants) to pay their taxes. ITINs do not provide work authorization or legal immigration status and ITIN holders are not eligible for social security benefits or certain tax benefits like the Earned Income Tax Credit (EITC).

The ITIN does not track immigration status and the IRS does not typically share applicants’ private information with other agencies, according to Section 6103 of the Internal Revenue Code.

Tax forms for immigrants

The tax forms you will need to file taxes as an immigrant will depend on your specific immigration status, types of taxable income, and family situation.

Resident aliens can use the same tax forms as U.S. citizens. Here are the main tax forms you’ll need to be aware of:

Form W-4: If you are employed in the U.S., your employer will have you fill out a Form W-4 to determine how much money will be withheld from your paycheck for taxes. If you underestimate your withholdings, you will owe money come tax season. If you overestimate your withholdings, you get a refund from the IRS after you file.

Form 1040: Form 1040 is the Individual Income Tax Return. This is the form you will use to file your tax return if you are a resident alien.

Form 1040-NR: If you are a non-resident alien, you will use Form 1040-NR to file your taxes.

Form 2555: Resident aliens are required to report all income from both the U.S. and outside countries. Use Form 2555 to report your foreign earned income and determine if you are eligible for any exclusions.

Form 4868: Tax returns are due April 15, 2024. If you need more time, you can file for an extension to October 15 using Form 4868.

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The articles and content published on this blog are provided for informational purposes only. The information presented is not intended to be, and should not be taken as, legal, financial, or professional advice. Readers are advised to seek appropriate professional guidance and conduct their own due diligence before making any decisions based on the information provided.