The immigration
rules of the United States are always conjoined to its tax structure. In a way the
immigration in USA is merit driven and looks at a person’s ingenuity to
contribute to the economy by way of skills, knowledge and
entrepreneurship. Therefore those
seeking U.S. immigration must know rules of taxation affecting different types
of immigrants’ especially undocumented aliens.
Under the
provisions of the new Immigration Reform Bill the immigration tax laws will be sharpened to absorb the illegal immigrants
numbering 11 million into a pathway of citizenship by way of more back taxes
and the addition of more taxpayers to the tax base. This will progressively
offset any wasteful expenditure at the social security front in a few years.
Tax Laws and Citizenship
The treatment of
aliens under the internal revenue and social security laws of the United States
is contingent on the status of aliens under the immigration laws of the United
States. The immigration laws classify aliens into three:
- Immigrants
- Non-immigrants
- Illegal aliens
Immigrants can reside
permanently in the United States and get the green card. The green card holder can enter and leave the
United States without a visa or re-entry permits at will and earn income in the
United States. citizen.
Back Tax Issues
Under the new Immigration
Bill citizenship for 11 million undocumented immigrants would be a long drawn
process with tax tests.
- Gaining Provisional legal status after passing
background checks and paying back taxes
- Applying for green cards after PLS in 10 years
- Applying for citizenship three years into getting green
cards
In tax matters,
the tax laws speak of only resident aliens and nonresident aliens. While resident aliens are taxed as U.S.
citizens nonresident aliens are taxed as per the Internal Revenue Code.
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