Texas Taxpayer Assistance Project
A Project of Texas RioGrande Legal Aid Inc.

Clients Call Toll-Free 1-888-988-9996

There are some basic things everyone needs to know about income taxes.

1. If you work in the United States, you must report your income to see if you owe income tax. This rule is for citizens of all ages, people with green cards, people without green cards, and people without social security numbers.
2. How much tax do I have to pay?  The amount of income tax you owe depends on how much you earn, other income you get, how many people live with you, and how many people you support.
3. How do I report my income? At the end of every year, you fill out a form that is called a tax return. The government makes these forms. You can get the forms at public libraries, by mail, or on the Internet. This is called “filing a tax return.”
4. How does the government know I report the correct amount of income?  Most employers report your income to the Internal Revenue Service. The Internal Revenue Service—known as the IRS—is the part of the U.S. government that collects taxes. If you report income that is different than what your employer reports, the IRS will ask you to explain the difference.
5. How do I pay my income tax?  Every payday, your employer takes some money out of your pay and sends that money to the IRS. This way you pay your taxes little by little during the year. If your employer does not take the money out of your pay, you will owe all the tax at once at the end of the year. Or you may send your taxes to the IRS during the year.
6. What if my employer takes out too much money?  If your employer sends the IRS more money than you owe, you will get a refund. This happens a lot, especially with workers who do not earn a large income. To get your refund, you must file your tax return. You can get a refund even if you do not have legal permission to work in the U.S.
7. You may qualify for benefits from the IRS.  The IRS pays money to some families who earn low wages—even if you do not have permission to live and work in the U.S. The IRS gives tax credits to elderly people, to people who have children, and to people who pay for child care or education.
8. What is a tax credit?  A tax credit is money that is subtracted from the tax you owe. If you do not owe any tax, some tax credits may give you a bigger refund.
9. Is there a deadline for reporting my income and paying taxes?  Yes. The deadline is April 15 of the next year. In other words, if you are filing a tax return for 2006, you must file it by April 15, 2007. You can send a special form to the IRS if you need more time to file your tax return. But you must pay your taxes by April 15, or you will pay a penalty.
10. The IRS and the Department of Homeland Security have different rules about legal status. They define resident aliens in different ways. If you do not know your status for income taxes, call TTAP for help.
11.  What if I don’t have a good social security number?  You do not need a social security number to file a tax return. You can get an Individual Taxpayer Identification Number (ITIN) and use it to file your tax return. The ITIN looks like a social security number, but it is used only for income tax. It does not change your immigration status or your right to work in the U.S.
12.  How do I get an ITIN?  You send a form W-7 along with your original tax return to the IRS. You must show a photo identification and proof of foreign status. You can take all your documents to the IRS walk-in office. It takes about 6 to 8 weeks to get your ITIN.
13.  Will I get in trouble with immigration if I use an ITIN?  Immigration cannot get names of people using an ITIN, unless you are suspected of terrorist activities. If you plan to adjust your immigration status, you must show proof that you filed your tax returns. You can use an ITIN to file your returns.

Some things you must know:

ü      You need to file! You are breaking the law if you owe income tax and do not file an income tax return. If you work in the U.S., you have certain responsibilities. One of them is to report your income to the IRS and pay any tax you owe.

ü      You get benefits by filing!  If you paid more tax than you owe, you will get a refund. If you qualify for tax credits, your refund may be bigger. To get your refund or your credits, you must file a tax return.

ü      It helps your immigration application if you file a tax return! As part of your immigration application, you must show that you filed your taxes. You show “good moral character” and that you had “continuous presence” in the U.S. when you file your taxes. You must prove both of these for most immigration benefits.

ü      You can get free information, free forms, and free help to file your tax return! You do not have to pay to file your tax return. Call 1-800-829-1040 and ask for the closest location of Volunteer Income Tax Assistance (VITA). Or call 1-888-227-7669 for the closest Tax Counseling for the Elderly (TCE). Both have people trained by the IRS who can prepare and electronically file your tax return for free.