Undocumented immigrants can file taxes using an Individual Taxpayer Identification Number (ITIN) instead of a Social Security number, and many do so every year

An Individual Taxpayer Identification Number (ITIN) is a nine-digit tax ID issued by the IRS to people who cannot get a Social Security number but have a U.S. tax filing requirement. Undocumented immigrants use ITINs to file federal income tax returns and pay taxes on wages, self-employment income, or investment earnings. The IRS does not share ITIN information with immigration enforcement agencies, and filing taxes does not change immigration status or trigger deportation proceedings.

Undocumented workers pay taxes through the same mechanisms as other employees: payroll withholding, quarterly estimated tax payments, or filing a return at the end of the year. Many undocumented immigrants pay Social Security and Medicare taxes (FICA) even though they cannot draw benefits from those programs. The IRS processes millions of ITIN tax returns annually, and the process is straightforward once you have the ITIN itself.

Key Takeaways

  • An ITIN is obtained by filing Form W-7 with the IRS and providing proof of identity and residency; the process takes four to six weeks.
  • Undocumented workers file taxes using Form 1040 or Form 1040-SR, the same forms as citizens, but with their ITIN instead of a Social Security number.
  • Employers withhold federal income tax, Social Security, and Medicare from paychecks using the ITIN, just as they do for other employees.
  • The IRS does not report ITIN filers to immigration authorities, and filing taxes does not change immigration status or create legal risk related to immigration enforcement.

Getting an Individual Taxpayer Identification Number (ITIN)

To obtain an ITIN, you file Form W-7 (process for IRS Individual Taxpayer Identification Number) with the IRS. You must include proof of identity (a valid passport, national ID card, or driver's license from your home country) and proof of U.S. residency (a utility bill, lease, bank statement, or tax return from a prior year). The IRS accepts applications by mail or in person at an IRS office or an authorized acceptance agent, such as a tax preparation nonprofit or community organization.

Processing takes four to six weeks by mail. Some community organizations and tax preparation services offer in-person filing, which can speed up the process. Once approved, the IRS mails your ITIN to the address you provided. You can then use it to file tax returns and provide it to employers for payroll purposes. An ITIN does not expire, though the IRS may require you to renew it if you do not file a tax return for three consecutive years.

Filing a Tax Return with an ITIN

Undocumented immigrants file federal income tax returns using Form 1040 or Form 1040-SR (for people 65 and older), the same forms used by U.S. citizens and permanent residents. You report all income earned in the United States—wages, self-employment income, tips, rental income, or investment earnings—and claim deductions and credits you are may have access to to. You use your ITIN in place of a Social Security number on the return.

You can file on your own using tax software that accepts ITINs, or you can work with a tax preparer or nonprofit tax clinic. Many community organizations offer free or low-cost tax preparation for people with ITINs. The filing important date is the same as for other taxpayers: April 15 (or the next business day if April 15 falls on a weekend or holiday). You file by mail or electronically if your tax software supports ITIN filing.

Payroll Withholding and FICA Taxes

When an undocumented worker provides an ITIN to an employer, the employer withholds federal income tax, Social Security tax (6.2 percent), and Medicare tax (1.45 percent) from each paycheck, just as they do for other employees. The employer also pays a matching amount of Social Security and Medicare tax. These withholdings are reported to the IRS using the worker's ITIN.

Many undocumented immigrants pay into Social Security and Medicare throughout their working lives but cannot draw benefits from those programs because they lack legal work authorization. The taxes withheld reduce the amount of income tax owed when you file your return. If too much tax was withheld, you receive a refund; if too little was withheld, you owe the difference when you file.

Self-Employment and Quarterly Estimated Taxes

If you are self-employed—working as an independent contractor, running a small business, or earning income that is not subject to payroll withholding—you must pay estimated quarterly taxes to the IRS. You calculate your expected annual income, subtract deductions, and pay one-quarter of the estimated tax due every three months (April 15, June 15, September 15, and January 15). You file Form 1040-ES to calculate the amount and send payment with your ITIN.

Self-employed people also pay self-employment tax, which covers both the employee and employer portions of Social Security and Medicare (15.3 percent of net self-employment income). You report this on Schedule SE when you file your annual return. Many self-employed undocumented workers use tax software or hire a preparer to calculate quarterly payments and file the annual return correctly.

Refunds and Tax Credits

If you overpay taxes through withholding or quarterly payments, you receive a refund when you file your return. The refund is sent to the address you provide on your return or deposited into a U.S. bank account if you provide banking information. Refunds typically arrive within three weeks of filing.

Some tax credits are available to ITIN filers, including the Child and Dependent Care Credit and the Earned Income Tax Credit (EITC) in some states. However, the federal EITC is not available to ITIN filers, and may be able to access for other credits depends on your specific situation. A tax preparer can review your return to identify credits you may be may have access to to claim.

Privacy and Immigration Enforcement

The IRS does not share ITIN information with U.S. Immigration and Customs Enforcement (ICE) or other immigration agencies. Filing a tax return does not change your immigration status, trigger an immigration investigation, or create a record that can be used against you in immigration proceedings. The IRS's role is to collect taxes, not to enforce immigration law.

However, other information you provide—such as your address on the return or information shared with a tax preparer—could theoretically be obtained by immigration authorities through other means. If you have concerns about privacy, you can work with a tax preparer who is bound by confidentiality rules, such as a Certified Public Accountant (CPA) or an attorney. Community organizations that offer free tax preparation also maintain confidentiality.

Frequently Asked Questions

Can I get an ITIN if I am undocumented?

Yes. The IRS issues ITINs to people without Social Security numbers who have a U.S. tax filing requirement, regardless of immigration status. You do not need to be a permanent resident or have legal work authorization to obtain an ITIN.

Will filing taxes hurt my immigration case?

No. Filing a tax return does not change your immigration status or create a legal problem related to immigration. The IRS does not report ITIN filers to immigration authorities. However, if you are in removal proceedings or have a pending immigration case, consult an immigration attorney before filing to understand how tax records might be used in your specific situation.

What if my employer will not accept my ITIN?

Employers are required to accept a valid ITIN for payroll purposes. If an employer refuses, you can report them to the IRS or contact a worker advocacy organization. You can also file a tax return reporting self-employment income if you were paid in cash and did not receive a W-2 form.

Do I have to file taxes if I earned very little money?

The IRS has income thresholds below which you do not have to file. For 2023, the threshold for a single person under 65 was $13,850 in gross income. However, if taxes were withheld from your paychecks, filing a return allows you to claim a refund of the taxes paid. A tax preparer can tell you whether filing benefits your situation.

Can I claim dependents on my ITIN return?

Yes, you can claim dependents if they meet the IRS requirements: they must be a U.S. citizen, national, or resident alien; live with you for more than half the year; and be related to you or meet other may have access to relationships. Each dependent must have an ITIN or Social Security number. Claiming dependents may reduce your tax owed or increase your refund.