News & Insights

1. Introduction to U.S. Tax Obligations for Asylum Applicants

As an asylum applicant in the United States with a valid Employment Authorization Document (EAD), you are required to comply with U.S. tax laws if you earn income. Filing taxes is essential for staying compliant and may also benefit your immigration case by demonstrating good moral character and legal compliance.

If you started working in December, you must determine whether you need to file taxes for the current year or the next, based on your income and employment type (e.g., employee or self-employed).

2. Key Considerations for Tax Filing

Filing for Income Earned in the Current Year

• If you began working in December and earned any income during that month, you are required to file taxes for that income when filing for the current tax year.
• For example, income earned in December 2024 must be reported in your 2024 tax return, which is due by April 15, 2025 (unless an extension is requested).

Threshold for Filing Taxes

You are required to file a tax return if your total income meets or exceeds the IRS minimum filing threshold.

• For 2024, the standard deduction thresholds are:
• $14,600 for single filers or married persons filing separately.
• $21,900 for head of household.
• $29,200 for married couples filing jointly or qualifying surviving spouses.

Self-Employment Income (1099 Workers)

• If you are an independent contractor (1099 worker) and earned $400 or more in net self-employment income, you must file taxes regardless of whether you meet the standard deduction threshold.

Employee Income (W-2 Workers)

• If you are a regular employee and received a W-2 form, you should file taxes if your total earnings exceed the standard deduction threshold.

3. Documents You Need to File Taxes

• W-2 Form: If you are a regular employee, your employer will provide this form, summarizing your earnings and taxes withheld. Employers must send this form by January 31 of the following year.
• 1099 Form: If you are self-employed or an independent contractor, your clients will issue a 1099 form summarizing the payments made to you.
• Social Security Number (SSN) or ITIN: You need an SSN or Individual Taxpayer Identification Number (ITIN) to file your tax return.

4. Steps to File Your Taxes

Gather All Necessary Documents

• Collect your W-2 or 1099 forms, pay stubs, and any other proof of income earned during the tax year.

Use Tax Software or Professional Services

• You can use IRS-approved tax filing software or seek help from a tax professional.
• Organizations like the Volunteer Income Tax Assistance (VITA) program offer free tax filing services for eligible individuals.

File Electronically or By Mail

• Filing electronically is faster and more accurate.
• You can also choose direct deposit for faster refunds.

Pay Any Taxes Owed

• If your employer did not withhold enough taxes from your paycheck or you are self-employed, you may owe additional taxes.
• Pay these by the filing deadline to avoid penalties.

5. Why Filing Taxes is Important for Asylum Applicants

Legal Compliance:

• Filing taxes is a legal obligation for anyone earning income in the United States.
• Failing to comply can result in penalties and affect your future immigration applications.

Demonstrating Good Moral Character:

• Proper tax compliance reflects positively on your character, which is often considered in immigration processes, including asylum and green card applications.

Claiming Tax Benefits:

• Filing taxes allows you to claim potential refunds or credits, such as the Earned Income Tax Credit (EITC) if you qualify.