Top 10 Reasons to File Individual U.S. Tax Returns if you are an Undocumented Immigrant

1. It's the Law

It is the law to file individual U.S. tax returns. Those who have an income but fail to file are breaking a serious law.

Remember, the IRS has a job to do: It wants to collect taxes, not catch someone who has overstayed his visa, now washes dishes for minimum wage and wants to give Uncle Sam his cut. Generally speaking, if you pay taxes, the IRS likes you!

2. Proof of Presence

Tax returns are proof for undocumented immigrants, and for anyone, that you have been in the U.S. during each year you filed as a resident. This proof may be required if and when any future guest worker program or amnesty provisions are made.

3. Proof of Spouse's Presence and/or Spousal Relationship

Tax returns indicate your marital status (single, married, head of household), thus possibly later improving or proving a spouse's eligibility for any guest worker or amnesty claims.

4. Proof of Dependents' Presence and/or Relationship

Tax returns also document dependents that you have (spouse, children, elderly parents, etc.).

5. Proof of Income and Self-Sufficiency

Tax returns reveal your income level and your ability to support yourself and your family in the United States.

6. Possible Eligibility for Tax Benefits/Credits

Tax returns allow you to receive certain tax benefits - such as the Child Tax Credit, including the refundable portion of the Additional Child Tax Credit if you otherwise qualify.

7. Tax Payer Identification Number Eligibility

Filing tax returns provides a legitimate basis for getting an Individual Taxpayer Identification Number. Having a legitimate TIN gives you a legal tax number that is yours and yours alone. It is certainly preferable to using a fake Social Security number, which is illegal, and could lead to identity theft charges.

8. Proof of Income as Basis for a Mortgage and Other Credit

Tax returns serve as proof of your income history to help support your purchase of a home, to get a car loan, credit card or an education loan, using your Individual Taxpayer Identification Number. Immigration advocates generally encourage immigrants to deal with banks and legitimate loan programs, as this may protect them from crime and exploitation.

9. Demonstration of Good Moral Character

In any immigrant legalization process, the applicant needs to demonstrate "good moral character." Compliance with U.S. tax laws (filing tax returns and paying the required taxes) is often considered demonstration of favorable character.

10. It's Good to be Prepared, Just in Case

Some recent political language surrounding pending immigration legislation has referred to those eligible for legalization as having to "pay back taxes," in addition to "demonstrating they have been in the US 'X' number of years." Being prepared may come in handy even sooner than expected. In fact, you may even want to consider filing back taxes. You can file for the past several years, and, if you owe more than you can pay right now, the IRS will work out a payment plan with you.