Immigrants do pay taxes in the United States, and they pay them under the same federal laws that apply to citizens. Internal Revenue Code Section 1 imposes income tax on “every individual,” and the IRS reads that phrase exactly as broadly as it sounds: citizenship and immigration status have no bearing on whether you owe tax on money earned here.1Office of the Law Revision Counsel. 26 USC 1 Tax Imposed The agency even created a dedicated identification number so people without Social Security numbers can file returns and pay what they owe. What changes from one person to the next is how much is owed and which form to use, and that turns on how long you’ve lived in the country and what kind of income you earn.
Will the IRS Share My Information with Immigration?
The single biggest worry immigrants have about filing is whether the IRS will hand their information to immigration enforcement. Federal law says it generally cannot. Under 26 U.S.C. ยง 6103, tax returns and return information are confidential, and no federal officer or employee may disclose them except through narrow exceptions written into the statute.2Office of the Law Revision Counsel. 26 US Code 6103 – Confidentiality and Disclosure of Returns and Return Information Those exceptions require things like a federal court order tied to a specific criminal investigation. They do not include routine immigration enforcement.
This is why the IRS issues Individual Taxpayer Identification Numbers without asking about immigration status. The agency collects revenue; it does not enforce border policy, and Congress designed the confidentiality rules to keep those functions separate. Filing a return with an ITIN does not put you on an immigration enforcement list. Not filing, though, can create problems later if you ever apply for a green card or citizenship.
Who Has to File a Federal Return
Whether you need to file depends on what you earned. For the 2025 tax year, the gross income thresholds that trigger a filing requirement are:
- Single, under 65: $15,750
- Married filing jointly, both under 65: $31,500
- Head of household, under 65: $23,625
- Married filing separately, any age: $5
These thresholds apply to U.S. citizens, permanent residents, and anyone else classified as a resident alien for tax purposes.3Internal Revenue Service. Instructions for Form 1040 (2025) – Section: Filing Requirements If you work for yourself, the bar drops sharply: you owe tax and must file once your net self-employment earnings hit $400.4Internal Revenue Service. Self-Employment Tax (Social Security and Medicare Taxes)
Missing the filing deadline triggers a penalty of 5% of unpaid tax for each month or partial month the return is late, up to 25%.5Internal Revenue Service. Failure to File Penalty Filing on time keeps you clear of that penalty even if you cannot pay the balance in full.
Resident or Nonresident: The Two Tests That Decide
The IRS does not look at the visa stamp in your passport. It sorts you into “resident alien” or “nonresident alien” for tax purposes, and the two categories carry very different obligations. Two tests control the sort.
The Green Card Test
If you hold a Permanent Resident Card (Form I-551) at any point during the calendar year, you are automatically a resident alien for tax purposes.6Internal Revenue Service. US Tax Residency – Green Card Test Time spent abroad does not change that. Green card holders are taxed like citizens.
The Substantial Presence Test
Without a green card, you can still become a resident alien by spending enough time in the country. You meet the Substantial Presence Test when both of these are true:
- You were physically present in the U.S. for at least 31 days in the current year.
- The sum of your days this year, plus one-third of your days last year, plus one-sixth of your days from two years ago, adds up to at least 183.7Internal Revenue Service. Substantial Presence Test
What Each Group Actually Owes
The resident/nonresident line controls what income you report, what deductions you can take, and which form you file.
Resident aliens report worldwide income: wages, investments, rental income, and everything else, whether earned in the U.S. or abroad. They file Form 1040, the same return citizens use, and can claim the standard deduction.8Internal Revenue Service. Publication 519 (2025) US Tax Guide for Aliens
Nonresident aliens generally owe tax only on income connected to work or business in the United States. They also owe a flat 30% tax, or a lower rate under a tax treaty, on certain passive income from U.S. sources such as dividends, interest, and royalties.9Internal Revenue Service. Taxation of Nonresident Aliens They file Form 1040-NR rather than Form 1040 and generally cannot take the standard deduction; they must itemize to reduce taxable income.10Internal Revenue Service. Nonresident – Figuring Your Tax Filing statuses like married filing jointly and head of household are also unavailable to them.
The United States has income tax treaties with dozens of countries, and those treaties can reduce or eliminate federal tax on wages, scholarships, and other income for nonresident aliens from a treaty country. If a treaty exempts your income from withholding, you give Form 8233 to your employer or payer. Treaty benefits often carry time limits, covering only a set number of years after arrival.8Internal Revenue Service. Publication 519 (2025) US Tax Guide for Aliens
Filing Without a Social Security Number
If you are not eligible for a Social Security number but have a tax filing obligation, the IRS issues an Individual Taxpayer Identification Number so you can file. An ITIN is only a tax processing number. It does not authorize employment and does not change your immigration status.11Internal Revenue Service. Individual Taxpayer Identification Number (ITIN)
You apply by submitting Form W-7 along with a federal tax return and documents proving identity and foreign status. A passport is the simplest option because it covers both in a single document. Applying is free at an IRS Taxpayer Assistance Center or a Volunteer Income Tax Assistance (VITA) site that handles ITIN services; IRS-approved Acceptance Agents also process applications but charge fees.12Internal Revenue Service. How to Apply for an ITIN
One trap catches people: ITINs expire if you do not use them on a federal return for three consecutive tax years. After that third unused year, the ITIN becomes invalid on December 31, and you must renew it before you can file again.13Internal Revenue Service. How to Renew an ITIN
Social Security and Medicare on Every Paycheck
Most immigrants pay into Social Security and Medicare through automatic paycheck withholding, whether or not they will ever collect the benefits. Under the Federal Insurance Contributions Act, employers must deduct 6.2% of wages for Social Security and 1.45% for Medicare, a combined 7.65%, from every employee’s paycheck.14Office of the Law Revision Counsel. 26 USC Ch 21 Federal Insurance Contributions Act The employer pays a matching 7.65% on top of that. The Social Security portion applies to the first $176,100 in wages for 2025 and $184,500 for 2026.15Social Security Administration. Maximum Taxable Earnings Each Year
There is one significant exception. Foreign students on F-1, J-1, or M-1 visas classified as nonresident aliens are exempt from Social Security and Medicare taxes for their first five calendar years in the country.16Internal Revenue Service. Foreign Student Liability for Social Security and Medicare Taxes After that the exemption ends and normal withholding kicks in.
If You Work for Yourself
Immigrants working as independent contractors, freelancers, or gig workers do not have an employer withholding for them, so they handle it directly. Once your net self-employment earnings reach $400, you owe self-employment tax of 15.3%, which covers both the employee and employer shares of Social Security (12.4%) and Medicare (2.9%).4Internal Revenue Service. Self-Employment Tax (Social Security and Medicare Taxes) You report it on Schedule SE alongside your Form 1040.
Because nothing is being withheld for you, the IRS expects quarterly estimated tax payments rather than a single settlement at year end. For the 2026 tax year, those payments are due April 15, June 15, September 15, and January 15, 2027.17Taxpayer Advocate Service. Making Estimated Payments Missing a payment can trigger an underpayment penalty, so setting aside roughly a quarter to a third of each payment you receive is a practical way to stay ahead.
Which Credits an ITIN Filer Can Claim
Tax credits directly reduce what you owe, but several of the most valuable ones require a Social Security number rather than an ITIN, which shuts out many immigrant filers.
The Earned Income Tax Credit is off-limits entirely to ITIN filers. The taxpayer, spouse if filing jointly, and every qualifying child must each have a valid SSN issued for employment.18Internal Revenue Service. Basic Qualifications There is no workaround.
The Child Tax Credit follows a similar rule. For 2025 the credit is worth up to $2,200 per qualifying child under 17, with up to $1,700 of that refundable if you owe little or no tax. But you (or your spouse on a joint return) and each qualifying child must have an SSN valid for employment.19Internal Revenue Service. Child Tax Credit An ITIN holder married to someone with an SSN can claim the credit on a joint return, but the child still needs an SSN.
Nonresident aliens face tighter restrictions still. Most credits are unavailable on Form 1040-NR, though residents of Canada and Mexico can claim certain dependent-related credits that other nonresident filers cannot.
Taxes You Pay Without Filing Anything
Even immigrants who earn too little to file a return still contribute to public revenue through ordinary spending. Sales tax is added at the register on most goods and services, with combined state and local rates varying by location. It is collected regardless of who you are.
Housing carries a hidden tax component too. Landlords pay property taxes on the buildings they own, and those costs are built into the rent. Renters end up funding local schools, roads, and emergency services through every monthly payment.
Why Filing Helps Your Immigration Case
Beyond the legal duty, filing taxes creates a paper trail that can help in later immigration proceedings. If you apply for naturalization using Form N-400, USCIS may ask for IRS tax transcripts, particularly if you have overdue taxes or if you have traveled outside the country for stretches of more than six months.20U.S. Citizenship and Immigration Services. Form N-400 Instructions for Application for Naturalization
Tax compliance also feeds into the “good moral character” evaluation USCIS conducts for naturalization applicants. Paying overdue taxes counts as evidence of rehabilitation, and a pattern of tax delinquency can work against you.21U.S. Citizenship and Immigration Services. Restoring a Rigorous Good Moral Character Evaluation Standard for Aliens Applying for Naturalization Filing consistently, even in years when your income falls below the threshold, builds a record that can become one of the most useful documents you have when an immigration case moves forward.