In debating the topic of illegals, someone makes the statement that "Illegals often file tax returns to prove long-term residency", to make the alleged point that they often pay taxes and contribute to the system.
Does this make any sense or have any basis in plausibility? I thought to file on either the state or federal level, you need to have a valid SSN? And to get a SSN, don't you have to have legal status?
Yes, you can file a return without an SSN, and the IRS has a page that describes just what this other number is:
The IRS mainly concerns itself with tax administration.
Can an illegal immigrant check the box to donate $3 to US Presidential campaign?
Sure. Why not?
Katie in San Diego.
The foregoing is intended for educational purposes only and does not constitute legal or professional advice. Nothing contained herein is intended to be used, or can be used, by any person to avoid penalties that may be imposed under federal or any state law.
Yes. One can get a taxpayers identification number (ITN) fairly easily, (because no one in the governement objects to people paying taxes). Originally thery were meant for workers temporarily here. But these days "temporary" can mean until expired. ITNs do not build retirement and disability like SSN. But many financial services accept them for bank accounts and mortgages, etc.
If they pay taxes. Many vote too. The voter registration requirements in the last few places I've lived in mainly are proof of address, nothing more.
Then the next question that comes to mind. If an ITIN doesn't build retirement or disability like an SSN then if an illegal is issued a 1099 instead of a W-2 (no SS/FICA or MC withheld) then is the illegal liable for Self Employment taxes?
Yes, many illegal aliens file tax returns but please don't believe the enabler's official line that they "pay" taxes. Most typically have zero taxable income and get much more in a tax refund than most American taxpayers because they have learned how to game the system.
Despite the ITIN program, most illegal aliens WILL NOT file for an ITIN because they aleady know that this makes them ineligible for a huge tax refund.
Most illegal aliens will use stolen SSNs, that is, valid SSNs that actually belong to a real taxpayer or person. They will typically file electronically and do so as soon as possible in order to file before the real taxpayer files their tax return.
The reason is that the illegal alien will then be "eligible" for receiving a (fraudulent) tax refund that mainly consists of the earned income tax credit (EITC) and sometimes the additional child tax credit (CTC).
The incentive to do this is huge since the refund amount is typically over $4,000. Since they are often married, and the wife will also file a separate tax return using a fake SSN, then they end up getting over $8,000 for simply submitting a bunch of papers.
Also, these illegal aliens typically have more than the two children needed to max out the EITC so they typically will sell the unused children's SSNs to friends, other family members or anyone else so that they also can file fraudulent returns and get huge EITC tax refunds.
Do they get caught? Many do, but the vast majority don't. There are just too many of them filing fraudulent tax returns for the IRS, for many reasons, to catch them all. Also, if they do get caught, they just get another SSN and use that to file.
As for the issue of the self-employment tax, it doesn't matter if they are eligible for SS benefits. Most of them are getting government benefits now via the fraudulent EITC refunds. Also, any self-employment tax shown as due on their tax return is more often than not fully paid by the EITC and the CTC, refundable credits that are just government handouts that come from real American taxpayers paying their income taxes, so any statements that illegal aliens pay taxes is largely a myth.
Rudy
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Nice summation. In addition you have the State welfare angle that has been increasing quite rapidly. What we seem to be in the midst of is the greatest socialist wealth transfer in the history of the world. I note the California State Senate Democrats just came out for unlimited and unrestricted illegal immigration and one of the 'voice of the NY Times' columnists came out for the ( no secret there ) position that the tax payers of the U.S. cannot "give" enough to bring up the living status of the worlds under performing.
is there a service that hires out illegals for temp work? just asking...
According to the last info from Soc. Sec. Adm. on bounced card numbers, it seems that most do. From what I've seen you could also go down to McDonalds Or Burger King and as one of the folks in the back, actually out here the counter person would probably be ok also, if you could hire one of their relatives.
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