Undocumented immigrants have been a topic of debate for many years, particularly when it comes to their obligation to file tax returns. While there is no clear answer to the question of whether or not undocumented immigrants should file taxes, many experts believe that doing so can have several benefits.
According to the Internal Revenue Service (IRS), all undocumented immigrants who earn income in the United States must file a tax return, regardless of their immigration status. This includes those who are employed or self-employed and those who receive other forms of income such as rental income or investment income.
On average, undocumented immigrants pay 8% of their income in taxes, including Social Security, Medicare, and federal income taxes. This is due to the fact that these taxes are automatically withheld from their paychecks by their employers, and they may not be eligible to receive a refund of these taxes if they do not file a tax return.
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However, filing a tax return can help undocumented immigrants establish a paper trail that can be used in the future if they apply for a change in their immigration status. For example, a record of paying taxes can demonstrate to immigration officials that the individual has been a responsible and law-abiding resident.
Additionally, filing a tax return can help undocumented immigrants access certain benefits such as the Earned Income Tax Credit (EITC), which provides a tax credit for low- to moderate-income workers. The EITC can help these individuals reduce the amount of taxes they owe, or increase the size of their tax refund.
While there is no clear answer to the question of whether or not undocumented immigrants should file taxes, many experts believe that doing so can provide several benefits. All undocumented immigrants who earn income in the United States must file a tax return, and this can help them establish a paper trail that can be used in the future if they apply for a change in their immigration status. Additionally, filing a tax return can help undocumented immigrants access certain benefits such as the EITC.
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