{"id":210,"date":"2015-06-24T22:00:24","date_gmt":"2015-06-25T02:00:24","guid":{"rendered":"https:\/\/ogtax.wpengine.com\/?p=157"},"modified":"2023-02-24T07:08:05","modified_gmt":"2023-02-24T07:08:05","slug":"undocumented-entrepreneurs-no-social-security-number-owning-a-business","status":"publish","type":"post","link":"https:\/\/oandgaccounting.com\/staging\/undocumented-entrepreneurs-no-social-security-number-owning-a-business\/","title":{"rendered":"Undocumented Entrepreneurs: No Social Security Number, Owning a Business"},"content":{"rendered":"

Question:<\/strong> I am an undocumented immigrant with an ITIN number. I do cleaning work as a contractor. The payor asked for a W9. I filled out the W9 with my ITIN and files a 1040 and schedule C and pays SE tax every year.
\nPurely from a tax perspective, is this the right way to go?<\/p>\n

Answer:<\/strong>\u00a0As far as reporting the income and paying the appropriate tax, it is appropriate to use\u00a0Schedule C<\/a>\u00a0and\u00a0form 1040<\/a>, assuming you\u00a0meet the substantial presence<\/a>\u00a0test and qualifies as a\u00a0US person or resident alien<\/a>\u00a0for tax purposes.<\/p>\n

According to this\u00a0IRS information page<\/a>, foreign workers who are illegal aliens (undocumented aliens) are subject to U.S. taxes in spite of their illegal status. U.S. employers or payers who hire illegal aliens (undocumented aliens) may be subject to various fines, penalties, and sanctions imposed by the\u00a0U.S. Department of Homeland Security<\/a>.<\/p>\n

If such employers or payers choose to hire illegal aliens (undocumented aliens), the payments made to those aliens are subject to the same tax withholding and reporting obligations that apply to other classes of aliens.<\/p>\n

References\/Related Topics<\/u><\/strong><\/p>\n

Foreign Entrepreneurs and Wage Reporting<\/a><\/p>\n

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