Undocumented immigrants can file taxes using an Individual Taxpayer Identification Number (ITIN) instead of a Social Security Number

An Individual Taxpayer Identification Number (ITIN) is a nine-digit number issued by the Internal Revenue Service (IRS) to people who cannot obtain a Social Security Number but have a U.S. tax filing or payment obligation. Undocumented immigrants use an ITIN to file federal income tax returns, report wages, and pay taxes on earnings from U.S. employment or self-employment.

The IRS does not share ITIN information with immigration enforcement agencies. Filing taxes with an ITIN does not change immigration status, trigger deportation proceedings, or create a record that immigration authorities use to locate people. The IRS operates under separate legal authority from U.S. Citizenship and Immigration Services (USCIS) and Immigration and Customs Enforcement (ICE).

Many undocumented workers file taxes every year. The IRS has issued millions of ITINs since the program began in 1996, and the agency processes ITIN tax returns alongside returns filed with Social Security Numbers.

Key Takeaways

  • An ITIN is a tax identification number issued by the IRS that allows undocumented immigrants to file federal income tax returns and report earnings.
  • The IRS does not share ITIN information with immigration agencies, and filing taxes does not affect immigration status or trigger enforcement action.
  • To get an ITIN, you must complete IRS Form W-7 and provide proof of identity and proof of residency in the United States.
  • Undocumented workers can file taxes through mail, in person at an IRS office, or through a tax professional, and many receive refunds through direct deposit or check.
  • Some states allow people with ITINs to claim the Earned Income Tax Credit (EITC), which can result in a refund even if no taxes were owed.

How to obtain an ITIN

To get an ITIN, you file IRS Form W-7 (process for IRS Individual Taxpayer Identification Number) with the IRS. You can submit the form by mail or in person at an IRS office. Some tax professionals and community organizations also help people complete and submit the form.

The IRS requires two documents with your Form W-7: proof of identity and proof of residency in the United States. Acceptable identity documents include a passport, national ID card, driver's license, or birth certificate. Proof of residency can be a utility bill, lease agreement, mortgage statement, or bank statement dated within the past year and showing your name and U.S. address.

Processing time for an ITIN process is typically four to six weeks when submitted by mail. The IRS will send you a notice with your ITIN number by mail. Once you have an ITIN, you can use it to file tax returns for the current year and all future years.

Filing taxes with an ITIN

You file a federal income tax return using Form 1040 (U.S. Individual Income Tax Return) and enter your ITIN in the space where a Social Security Number would go. You report all income earned in the United States, including wages from an employer, self-employment income, tips, and other earnings.

You can file taxes by mail, through a tax professional, or using tax software that accepts ITINs. Some free tax preparation services in your community may also help you file. The filing important date is typically April 15 each year, though you can request an extension if you need more time.

When you file, you report deductions and credits you are may have access to to claim. Many undocumented workers claim the standard deduction, which reduces the amount of income subject to tax. Self-employed people can deduct business expenses.

Tax refunds and payment methods

If you overpay taxes during the year (through payroll withholding or estimated tax payments), you will receive a refund when you file your return. The IRS can send your refund by check mailed to your address, or by direct deposit to a U.S. bank account if you provide account information on your return.

If you owe taxes, you can pay by check, money order, or through the IRS payment system. Some people set up a payment plan with the IRS if they cannot pay the full amount at once.

Some states also process tax returns filed with an ITIN and issue state refunds. State rules vary, so check your state's tax agency website to learn whether you can file a state return with an ITIN.

The Earned Income Tax Credit (EITC) and other credits

The Earned Income Tax Credit (EITC) is a refundable tax credit for people with low to moderate income from work. Some states allow people with ITINs to claim the EITC on their state tax return, even if they cannot claim it on their federal return. A refundable credit means you can receive money back even if you owe no taxes.

Federal law currently does not allow people with ITINs to claim the EITC on their federal return. However, you may be able to claim other credits, such as the Child and Dependent Care Credit or education credits, depending on your situation and whether you meet the requirements.

State EITC programs vary. California, Colorado, Illinois, Maryland, New Mexico, New York, and Washington, D.C. allow people with ITINs to claim a state EITC. Other states may add this option in the future. Contact your state tax agency to learn the current rules.

Payroll taxes and employer withholding

When you work for an employer, they withhold federal income tax, Social Security tax, and Medicare tax from your paycheck. These withholdings happen whether you have a Social Security Number or an ITIN. Your employer reports your wages to the IRS using your ITIN.

Social Security tax and Medicare tax are withheld at a set rate from every paycheck. You cannot claim these taxes back on your tax return, even if you do not have a Social Security Number. However, you can claim the federal income tax that was withheld, and if too much was withheld, you will receive a refund.

Self-employed people pay self-employment tax (Social Security and Medicare tax) when they file their annual tax return. You calculate self-employment tax based on your net business income and pay it along with any income tax owed.

Privacy and data sharing between agencies

The IRS is a bureau of the U.S. Department of the Treasury. Immigration enforcement is handled by USCIS and ICE, which are part of the U.S. Department of Homeland Security. These are separate agencies with different legal authorities and databases.

Federal law prohibits the IRS from sharing ITIN information with immigration agencies for enforcement purposes. The IRS does not report ITIN filers to ICE or USCIS, and filing a tax return does not create a record that immigration authorities use to locate or identify people.

Some people worry that filing taxes will draw attention to their immigration status. The legal separation between the IRS and immigration agencies means that filing a tax return is not a pathway for immigration enforcement. However, if you have concerns about your specific situation, you can speak with a tax professional or immigration attorney before filing.

Frequently Asked Questions

Does filing taxes with an ITIN affect my immigration status?

No. Filing taxes does not change your immigration status, make you deportable, or create a record that immigration agencies use for enforcement. The IRS and immigration agencies operate separately and do not share ITIN information for enforcement purposes.

Can I file taxes if I do not have an ITIN yet?

You must have an ITIN before you file a federal tax return. You can explore for an ITIN using Form W-7 while you are waiting to file your return. Processing takes four to six weeks, so explore early if you want to file before the April 15 important date.

What if my employer asks for a Social Security Number?

You can provide your ITIN to your employer instead. Employers are required to report wages to the IRS, and they can use an ITIN for this purpose. If your employer refuses to accept an ITIN, you can contact the IRS or a local worker advocacy organization for guidance.

Can I claim dependents on my tax return if I have an ITIN?

Yes, you can claim dependents if they meet the IRS requirements for a dependent. Your dependents must have ITINs or Social Security Numbers. Each dependent must have a valid ITIN to be claimed on your return.

What happens if I do not file taxes?

If you do not file and taxes were withheld from your paycheck, you will not receive a refund. You also may miss out on credits like the EITC that could result in money back. Filing a return allows you to claim refunds and credits you are may have access to to.