File A Report With The Ftc
You should also file a report with the Federal Trade Commission, which collects information about identity theft. You can do this at this link.
Get LifeLock Identity Theft Protection 30 DAYS FREE*
Criminals can open new accounts, get payday loans, and even file tax returns in your name. There was a victim of identity theft every 3 seconds in 2019°, so dont wait to get identity theft protection.
Start your protection now. It only takes minutes to enroll.
Editorial note: Our articles provide educational information for you. NortonLifeLock offerings may not cover or protect against every type of crime, fraud, or threat we write about. Our goal is to increase awareness about cyber safety. Please review complete Terms during enrollment or setup. Remember that no one can prevent all identity theft or cybercrime, and that LifeLock does not monitor all transactions at all businesses.
Income Taxes And Your Social Security Benefit
Some of you have to pay federal income taxes on your Social Security benefits. This usually happens only if you have other substantial income in addition to your benefits .
You will pay tax on only 85 percent of your Social Security benefits, based on Internal Revenue Service rules. If you:
- file a federal tax return as an “individual” and your combined income* is
- between $25,000 and $34,000, you may have to pay income tax on up to 50 percent of your benefits.
- more than $34,000, up to 85 percent of your benefits may be taxable.
Filing Taxes Without A Social Security Number
The Form 1040 requires that a taxpayer enter their Social Security number at the top of the tax return. That obviously poses a problem for undocumented workers who are required to file returns but are seemingly prohibited from doing so because they arent eligible for SSNs.
Some non-citizens can apply for and receive Social Security numbers, however. Non-citizens might be temporarily authorized to work through Deferred Action for Childhood Arrivals or temporary protected status . Non-citizens might also have access to work visas.
These SSNs are only valid for a limited authorized time, but that technically means the non-citizens are not undocumented.
Also Check: Social Security Office Morgantown Wv
How Do I Apply For An Itin
If you want to file a tax return but cannot obtain a valid SSN, you must complete IRS Form W-7, Application for IRS Individual Taxpayer Identification Number. Form W-7 must be submitted to the IRS with a completed tax return and documents verifying identity and foreign status. You will need original documents or certified copies from the issuing agencies. The instructions for Form W-7 describe which documents are acceptable.
Parents or guardians may complete and sign a Form W-7 for a dependent under age 18 if the dependent is unable to do so, and must check the parent or guardians box in the signature area of the application. Dependents age 18 and older and spouses must complete and sign their own Forms W-7.
You can use this checklist to help prepare your application.
There are three ways you can complete the ITIN application:
Credit For Other Dependents
A $500 non-refundable credit is available for families with qualifying relatives. This includes children over 17 and children with an ITIN who otherwise qualify for the CTC. Additionally, qualifying relatives who are considered a dependent for tax purposes , can be claimed for this credit. Since this credit is non-refundable, it can only help reduce taxes owed. If you are eligible for both this credit and the CTC, this will be applied first to lower your taxable income.
Being able to claim a dependent may also allow people who are unmarried to claim the Head of Household filing status. Claiming Head of Household as your filing status may reduce the amount of income taxes owed.
Read Also: Social Security Office In Bronx
When Do You Need A Social Security Number
States, you can get a Social Security number only if you can prove you need it for a valid non-work reason. That might happen, for example, if a state or federal law requires you to have a Social Security number to get benefits to which you have already established entitlement. If you need a number for tax purposes, and you
Irs: Use Ssn On Tax Return Even If The Ssn Does Not Authorize Employment
On a webpage, the IRS says that you should use your Social Security number to file your tax return even if your SSN does not authorize employment or if you have been issued an SSN that authorizes employment and you lose your employment authorization.
For details of the three types of Social Security cards issued by the Social Security Administration see Types of Social Security Cards.
The IRS also reminds taxpayers that once you are issued an SSN, use it to file your tax return. The IRS adds that an ITIN will not be issued to you once you have been issued an SSN.
To continue your research on how to get an SSN, see FTC 2d/FIN S-1581.
to our Checkpoint Daily Newsstand email to get all the latest tax, accounting, and audit news delivered to your inbox each weekday. Its free!
Recommended Reading: Is Social Security Taxable In Nc
Child And Dependent Care Credit
The Child and Dependent Care Credit is a federal tax benefit that can help you pay expenses for child or adult care that is needed to work or to look for work. The 2021 American Rescue Plan temporarily expands the credit for tax year 2021 , making it fully refundable. This means the credit can provide money back even if you dont owe taxes. It is worth up to $4,000 for one dependent or up to $8,000 for two or more dependents. Learn more here.
Why Would An Undocumented Immigrant Pay Taxes
Though there are many undocumented immigrants who are paid under the table for their work and do not pay taxes on their income, many others do pay in the hope that it will someday help them become citizens. Much of the evidence for this motivation is anecdotal, but various attempts at comprehensive immigration reform legislation over the last decade, including the Gang of Eight bill S.744, have included provisions like good moral character and paying back taxes as requirements for obtaining legalization. A provable history of paying taxes is seen as one way to show good faith, should such a bill ever pass.
Recommended Reading: Social Security Office Anderson Indiana
What To Do If Someone Steals Your Tax Refund
If someone uses your Social Security number to file for a tax refund before you do, youll usually find out when you file your return with the IRS.
If you file by mail, the IRS will mail you a letter explaining that they received more than one return in your name. Follow the instructions in the letter.
If you try to submit your tax return online or through a tax preparer, the IRS will reject your tax return as a duplicate filing. If this happens, go to IdentityTheft.gov and report it. IdentityTheft.gov will create your
- FTC Identity Theft Report
Resident And Nonresident Aliens
How you claim a non-citizen spouse to your tax return depends on your spouseâs residency status. Your spouse will be either a âresident alienâ or a ânonresident alien.â Usually, there are two ways to tell whether a non-citizen qualifies as a resident alien:
- The non-citizen has a âgreen card,â which is authorization from the federal government to live and work in the United States permanently. The IRS refers to this as the âgreen card test.â
- The non-citizen was in the United States for at least 31 days of the year, and at least 183 days during the three-year period that includes the current year and the two years immediately before that. The IRS calls this the âsubstantial presence test.â Learn more about how to properly count those 183 days with TurboTaxâs Tax Tips for Resident and Non-Resident Aliens.
Anyone who doesnât qualify as a resident alien is considered a nonresident alien.
Read Also: What Part Of Social Security Is Taxable
How Changing Your Name Affects Your Taxes
Have you changed your name recently? Whether because of marriage, divorce, or simply preference, if you change your name, you need to notify the Social Security Administration to update your Social Security Number , update your government-issued identification, and your employer records before filing your taxes. This will ensure your tax return isnt delayed when you file.
Who Can Get A Social Security Number
A Social Security number serves many purposes. Itâs used as an identification number by your employer when reporting federal and state income and payroll taxes withheld, for instance. Itâs also used to open a bank account with a U.S. financial institution, apply for federal loans or certain types of public assistance, enroll in Medicare and to get a driverâs license.
Having a Social Security Number is also essential for establishing a credit score in the U.S. Without a SSN, it can be challenging to build credit and take out loans if you need them for major purchases.
If you, your spouse or a dependent qualify for an SSN, you should file Form SS5, Application for a Social Security Card, with the Social Security Administration .
According to the SSA, generally only non-citizens authorized to work in the U.S. by the Department of Homeland Security can get a Social Security number. To do this, you can either apply for a SSN in your home country before coming to the U.S. or visit a Social Security office in person.
If you choose to take care of this process in your home country, youâll need to file for a SSN when filing your application for an immigrant visa with the U.S. Department of State.
If visiting a Social Security office in person, youâll need to show documentation to prove your identity and work-authorized immigration status. This documentation might include:
You May Like: How To Apply Social Security Disability
File A Tax Return Without A Social Security Number
Why Should I File a Tax Return?
What is an ITIN?
Who Can Qualify for an ITIN?
What if I Lose my Eviction Case?
To prove Foreign Status you can use a:
LEP Services:
Can An Individual Taxpayer Identification Number Be Used For
The federal government collects taxes to enable it to function â pay its bills and provide services to the public. The Internal Revenue Service is the agency tasked with tax collection. You must file a federal income tax return every year, if you are a United States citizen, to determine the amount you owe in federal income tax. As a prerequisite to filing, you need a Social Security number, or SSN. If one spouse does not have a SSN, that spouse should apply for an ITIN â Individual Taxpayer Identification Number.
Also Check: Irs Employee Lookup
Read Also: Social Security Phone Number For Medicare
Review Your Credit Reports And Financial Statements
You want to catch the signs of identity theft quickly. The best way to do that is to monitor your credit reports and your online accounts.
You can order your free credit reports one each maintained by Equifax, Experian and TransUnion from AnnualCreditReport.com. Typically, you can order one free credit report from each bureau for free every year. During the pandemic, though, you can order a free report from each bureau every week.
Once you get your reports, look for any credit card accounts or loans that you know you never took out. Strange accounts on your credit reports are a sign that someone is using your identity to open new accounts and take out loans.
Also check your online bank and credit card accounts for suspicious purchases or large withdrawals. Thieves might have used your Social Security number to access these accounts.
Do I Need To File A Tax Return
The requirement to pay taxes in the U.S. isnât limited to U.S. citizens. Individuals who need ITINs can include:
- Nonresident aliens with a tax filing requirement
- U.S. resident aliens who need to file tax returns
- Dependents or the spouse of a U.S. citizen or resident alien
- Dependents or the spouse of a nonresident alien visa holder
Even if you wonât owe taxes, you may want to file an income tax return to claim a refund of taxes overpaid or claim the benefit or any deductions or credits, including the Child Tax Credit. On the other hand, if you owe taxes and donât file, the IRS can assess penalties and interest, seize U.S. assets, and impose immigration consequences.
According to the IRS, you must file the 1040NR tax form if you:
If you are unsure if you need to file taxes this year, you can read more about the minimum filing requirements for nonresident aliens in the IRS Instructions for Form 1040NR. Resident aliens can learn more about their filing requirements in IRS Publication 501.
You May Like: What Percent Is Social Security Tax
Spouses Tax Status Explained
There are several ways you can file your tax return if your spouse is not a U.S. citizen. The options depend on whether your spouse is a U.S. resident for tax purposes or not. In other words, the options depend on whether your spouse is already required to file tax returns with the IRS .
If your spouse is a resident alien, they are a tax resident of the United States and required to file federal income tax returns. If your spouse is a nonresident alien then they are not required to file U.S. tax returns.
There are two main ways to determine whether your spouse is a tax resident of the U.S.: the Green Card Test and the Substantial Presence Test.
What Are Acceptance Agents
Acceptance Agents are authorized by the IRS to assist you in completing your ITIN application. Some Acceptance Agents do not prepare tax returns. In that case, you must take the completed Form W-7 certified by the Agent to a VITA site or commercial tax preparer and submit it with the tax return.
Acceptance Agents are often found at colleges, financial institutions, accounting firms, nonprofit agencies and some Low Income Taxpayer Clinics. Commercial tax preparers who are Acceptance Agents often charge a fee that can range from $50 to $275 for completing the Form W-7. There is no fee for applying directly with the IRS.
Visit the Acceptance Agent Program on the IRS website for a list of Acceptance Agents by state that is updated quarterly. Low Income Taxpayer Clinics may also be able to help identify local Acceptance Agents.
Note to organizations:
You may want to become an Acceptance Agent. To do so, your organization must:
Read Also: Social Security New Haven Ct
The Substantial Presence Test
Your spouse may also be considered a tax resident of the U.S. if they spend a lot of time in the country. This is called having a substantial presence in the U.S.
The conditions that indicate a substantial presence are listed below. Your spouse is a resident alien if they were physically in the U.S. for at least:
- 31 days during the current year, and
- 183 days in the last 3 years and
- of those 183 days over the last 3 years,
- 1/3 of them were last year, and
- 1/6 of them were in the year before last.
As a general rule, resident aliens are taxed the same as U.S. citizens. They are taxed on all income from anywhere in the world.
If your spouse does not pass the Green Card Test or the Substantial Presence Test, they are a nonresident alien.
Once you understand your spouses tax status, the next step is to figure out how to file taxes if the spouse does not have SSN.