Yes, DACA recipients pay taxes. If you have work authorization through DACA, the IRS treats you as a resident for tax purposes, which means you file a federal return, pay income and payroll taxes on your earnings, and can claim most of the same credits available to U.S. citizens at your income level. For tax year 2026, you must file if your gross income tops $16,100 as a single filer, $32,200 married filing jointly, or $24,150 as head of household.1Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026, Including Amendments From the One, Big, Beautiful Bill
Federal law requires anyone whose gross income exceeds the standard deduction for their filing status to file a return.2Office of the Law Revision Counsel. 26 USC 6012 – Persons Required to Make Returns of Income Even if you earn less, filing is usually worth doing because refundable credits like the Earned Income Tax Credit can put money back in your pocket. Because most DACA recipients have lived in the country since childhood, they meet the Substantial Presence Test automatically and are taxed on worldwide income under the same rules as citizens.3Internal Revenue Service. Publication 519 (2025), U.S. Tax Guide for Aliens
What Comes Out of Your Paycheck
If you work as an employee, your employer withholds federal income tax based on what you entered on Form W-4 when you started the job.4Internal Revenue Service. Form W-4 (2026) – Employees Withholding Certificate On top of that, Social Security and Medicare taxes (together called FICA) come out at a flat rate: 6.2% for Social Security and 1.45% for Medicare, with your employer paying a matching amount.5Internal Revenue Service. Topic No. 751, Social Security and Medicare Withholding Rates The Social Security portion applies only to the first $184,500 of earnings in 2026.6Social Security Administration. Social Security Tax Limits on Your Earnings An additional 0.9% Medicare surtax hits wages above $200,000 for single filers or $250,000 for joint filers.7Internal Revenue Service. Topic No. 560, Additional Medicare Tax
State and local income taxes vary. Nine states impose no wage income tax; the rest have their own rates and forms. You also pay sales tax on purchases and property tax as a homeowner or built into your rent.
Do You Get Social Security Back?
This is the question that comes up in almost every conversation about DACA and taxes. The Social Security Administration’s Office of Inspector General confirmed in a 2018 audit that DACA recipients with valid work authorization earn Social Security credits and can qualify for retirement or disability benefits if they meet all eligibility requirements, including enough quarters of coverage.8Social Security Administration Office of the Inspector General. Social Security Benefits Paid to Non-citizens Granted Deferred Action Under the Deferred Action for Childhood Arrivals Policy Retirement benefits generally require 40 quarters, roughly 10 years of work. The credits you build up don’t disappear, but you generally need lawful status at the time you claim benefits. DACA recipients are not eligible for Supplemental Security Income, which follows a separate needs-based rule.
Your SSN and Prior ITIN Filings
When USCIS approves your Employment Authorization Document, the Social Security Administration typically mails your SSN card within about 14 days if you requested one on Form I-765.9Social Security Administration. Apply for Your Social Security Card While Applying for Your Work Permit and/or Lawful Permanent Residency Otherwise, you can apply at a local SSA office after receiving your EAD. That SSN is your permanent tax identifier: employers use it to report your wages, and you enter it on every Form 1040.10Social Security Administration. Social Security Numbers for Noncitizens The name and number on your return must match your Social Security card exactly, or the IRS may delay or reject the return.11Internal Revenue Service. Name Changes and Social Security Number Matching Issues
If you filed with an Individual Taxpayer Identification Number before receiving DACA, notify the IRS so your records merge. Without this step, you may lose credit for wages and taxes reported under the ITIN. Send a letter to the IRS at Austin, TX 73301-0057 with your full name, address, ITIN (and CP565 notice if you have one), and a copy of your Social Security card, or handle it in person at a local IRS office. Once processed, the IRS voids the ITIN and links prior records to your SSN. Use only the SSN going forward.12Internal Revenue Service. Individual Taxpayer Identification Number (ITIN)
If You Freelance, Drive Rideshare, or Run a Business
No employer means no withholding, and different rules take over. Net self-employment income of $400 or more in a year triggers self-employment tax at the full 15.3% FICA rate, reported on Schedule SE with your Form 1040. You can deduct half of that self-employment tax from your adjusted gross income, which lowers your income tax.
If you expect to owe $1,000 or more after withholding and refundable credits, the IRS requires quarterly estimated payments. The 2026 due dates are April 15, June 15, September 15, and January 15, 2027.13Internal Revenue Service. 2026 Form 1040-ES – Estimated Tax for Individuals
Starting in tax year 2026, clients and platforms that pay you $2,000 or more must issue a Form 1099-NEC, up from $600.14Internal Revenue Service. Publication 1099 General Instructions for Certain Information Returns All self-employment income is taxable whether or not a 1099 shows up. That last point trips people up: a $1,500 side gig with no form is still taxable.
Credits Worth Claiming
Filing pays off even in low-earning years because several credits either reduce your tax to zero or generate a refund.
Earned Income Tax Credit
The EITC is the biggest refundable credit for low- and moderate-income workers. You, your spouse (if filing jointly), and any qualifying children each need a Social Security Number valid for employment.15Internal Revenue Service. Who Qualifies for the Earned Income Tax Credit (EITC) DACA recipients with work-authorized SSNs meet that requirement. For 2025, the maximum credit ran from $649 with no children to $8,046 with three or more; 2026 amounts should be slightly higher after inflation adjustments.16Internal Revenue Service. Earned Income and Earned Income Tax Credit (EITC) Tables
Child Tax Credit
The Child Tax Credit is worth up to $2,200 per qualifying child. The catch for some DACA families: each qualifying child must have a Social Security Number valid for employment, issued before the return’s due date. Without one, you can’t claim the CTC for that child. The refundable Additional Child Tax Credit is worth up to $1,700 per qualifying child if you have at least $2,500 in earned income.17Internal Revenue Service. Child Tax Credit
American Opportunity Tax Credit
College students can claim up to $2,500 a year through the American Opportunity Tax Credit for the first four years of higher education. It covers 100% of the first $2,000 in qualified expenses and 25% of the next $2,000, with 40% (up to $1,000) refundable. Unlike the EITC and CTC, this credit accepts either an SSN or ITIN. It phases out for single filers with modified adjusted gross income above $80,000 and disappears above $90,000.18Internal Revenue Service. American Opportunity Tax Credit
Standard Deduction
Most filers take the standard deduction rather than itemize. For 2026 it’s $16,100 for single filers, $32,200 for married filing jointly, and $24,150 for head of household. A single filer earning $40,000 would pay tax on only $23,900 before credits.
What You Can’t Claim
A 2025 final rule from the Centers for Medicare and Medicaid Services removed DACA recipients from the definition of “lawfully present” for Health Insurance Marketplace eligibility.19Centers for Medicare and Medicaid Services. Patient Protection and Affordable Care Act – Marketplace Integrity and Affordability Final Rule DACA recipients can no longer buy subsidized coverage through healthcare.gov or claim the Premium Tax Credit. If you received advance premium tax credit payments earlier in 2025 before the rule took effect, you may need to reconcile them on Form 8962 with your 2025 return. For 2026 and beyond, that credit is off the table.
Why Filing Also Helps With DACA Renewal
Beyond avoiding IRS penalties, tax returns and transcripts build a paper record of your presence in the country and your conduct as a responsible resident. Many immigration attorneys recommend including IRS tax transcripts with Form I-821D when you renew.
You can request transcripts free through the IRS Individual Online Account, by calling 800-908-9946, or by mailing Form 4506-T. A return transcript shows the key line items from your filed return; an account transcript shows filing status, taxable income, and payment history. Phone and mail orders take 5 to 10 calendar days, so plan ahead of your renewal deadline.20Internal Revenue Service. Transcript Types for Individuals and Ways to Order Them
Skipping returns is expensive. The IRS charges a failure-to-file penalty of 5% of unpaid tax per month, up to 25% of the balance, plus a separate 0.5% monthly failure-to-pay penalty on the unpaid amount.21Internal Revenue Service. Failure to Pay Penalty Unresolved tax debt or missing returns can also complicate the background check that comes with renewal.
How to File and Get Help
E-filing is fastest; the IRS processes most electronic returns within 21 days.22Internal Revenue Service. Check the Status of a Refund in Just a Few Clicks Using the Wheres My Refund Tool Paper returns still work but take at least six weeks.
If your income is $69,000 or less, the IRS Volunteer Income Tax Assistance (VITA) program offers free preparation at community sites. VITA volunteers are trained on returns involving Social Security Numbers and immigration questions, which makes them a good match for DACA filers who want no-cost help.23Internal Revenue Service. Free Tax Return Preparation for Qualifying Taxpayers Find a location through the VITA locator on irs.gov.
Once you’ve filed, track your refund with the “Where’s My Refund?” tool on irs.gov; status appears within 24 hours of e-filing.24Internal Revenue Service. How Taxpayers Can Check the Status of Their Federal Tax Refund Keep copies of your return, W-2s, 1099s, and supporting documents for at least three years. Those records also work as evidence for your next DACA renewal.