The April 15 tax filing deadline is quickly approaching, however, there’s still time to file. All foreign nationals, regardless of their immigration status, are required to file tax returns if they worked in the U.S. the previous year.

Tax Filing Benefits

• Filing tax returns ensures you’re paying the proper amount and contributing to local resources, such as the police department and public school system.

• Building a tax history helps prove your continuous residency in the U.S., which may come in handy down the line if comprehensive immigration reform is passed.
• Filing your taxes can result in a return payment awarded to you if the IRS determines you’ve paid too much throughout the year or you qualify for tax breaks due to dependents and other exemptions.

3 Tax Filing Mistakes to Avoid

1. Not working with a qualified tax professional
Anyone with a preparer tax identification number (PTIN) can organize and file tax returns. However due to your unique status, you should work with a qualified tax professional to help avoid any filing mistakes, which can result in expensive fines down the road. From certified public accountants to tax attorneys, it’s important to understand different credentials to help you choose the right preparer. If you need assistance finding a reputable tax preparer, the IRS has an online tax return directory that’s updated regularly. Alternatively, you can use well-known tax preparation services, like H&R Block or TurboTax.

2. Paying the individual shared responsibility penalty

DACA grantees and other undocumented immigrants don’t qualify for Affordable Care Act (Obamacare) benefits, so they are exempt from paying the individual shared responsibility tax penalty. It imparts a fee on those without a health insurance plan. To file for your exemption, fill out Form 8965 with your return.

Scam Warning!
The IRS only accepts this payment through the tax return or in response to a letter they’ve officially sent. However, they’ve come across cases where tax preparers are telling filers they must pay them directly. Remember, this is not the case. Any tax preparer stating you must pay the fine is misinformed or attempting to commit fraud. Seek out a qualified tax professional who understands all tax laws and requirements. If you’ve been targeted by a fraudulent tax preparer, make an official complaint to the IRS.

3. Waiting until after the April 15 tax deadline

The federal tax season deadline is the last day to pay all taxes owed to the IRS for the previous year, without incurring fines. If you owe taxes and don’t file, you will have to pay a penalty fee of 5% of taxes owed for each month you’re late, not exceeding 25% of what’s owed. In some cases you can file an extension, however, it’s simpler to meet the deadline to ensure you don’t pay any additional fees.

Looking for more tax preparation advice? Visit the IRS website for more information on filing tax returns.