What Are The Top Ten Tips You Need to Know to Avoid Immigration Consequences Involving Your Taxes?

Many people don’t realize the impact of their Federal Income Tax Return choices on their immigration status. These points will help you avoid the most common pitfalls.

  1. One common error is filing as a single person. While there may be financial benefits to filing as a single, it isn’t truthful and can cause serious problems when you attempt to petition for your spouse. You can’t claim to be married and file as a single.
  2. For permanent residence, naturalization or other immigration benefits, applicants must include copies of Federal Income Tax Returns previously filed.
  3. The tax returns will be scrutinized by immigration officers.
  • The number of dependents and the financial support they receive according to law
  • The type and amount of deductions taken.
  • Among other things, reported income.

4. If the immigration officer finds that the person has falsified information or committed fraud, they will deny the immigration benefit being requested and, in certain cases, begin removal/deportation proceedings.

5. Don’t claim dependents, or family members that aren’t qualified to be dependents. Tax fraud is the most common problem. People claim that relatives living outside the United States are their dependents, simply because they send money to them. This is not allowed anymore.

6. You must disclose and account for any income you earn. Many people work as freelancers, under the table or make their living by working for cash. If you fail to disclose your income, it could raise questions about whether or not you are able to support an immigrant household.

7. Failure to file income taxes could impact the ability to receive an immigration benefit. A person may not have to file a tax return if their annual earnings fall below the IRS’s minimum. Failure to file a tax returns can be considered as a lack good moral character if they have documented income below the minimum amount. They may be ineligible to receive immigration benefits.

8. To earn the minimum income, lawful permanent residents must pay income tax. They must pay income taxes to be eligible for citizenship in the Future.

9. An Individual Taxpayer ID Number is not a Social Security number. For those without legal status, filing income taxes is easy. You can apply for an individual taxpayer ID number (ITIN) if you choose to file taxes even though you aren’t required to. This number can’t be used to prove work authorization for I-9 forms or employment applications.

10. It is possible to amend returns from previous years. Your clients may believe that they have failed to file tax returns when requested, reported unqualified dependents, understated or overstated income, deductions or income, or failed the filing deadline. Before applying for immigration benefits, it is recommended that your clients amend their tax returns. 

Summarized from an article by U.S. Immigration Law Group, LLP.