Tax season is in full swing! At this point everybody should be gathering their documents, filling out forms and getting everything ready to submit their tax returns to the Internal Revenue Service (IRS) before Monday, April 18, 2016. Yes, this year the date is later than usual.
All people receiving an income who have stayed 183 days in the country must report their income and pay taxes in the U.S., regardless of immigration status.
Undocumented individuals who do not have a social security number can file taxes with an ITIN (Individual Tax Identification Number). Here is a Frontera Fund article on how to get an ITIN.
Now the healthcare part.
The legislation known as the Affordable Care Act (ACA), or Obamacare, established health insurance marketplaces to make it easier for people to buy health insurance. The ACA requires that all United States citizens and lawfully present noncitizens either be covered by health insurance or pay a penalty. Undocumented immigrants and Deferred Action recipients are not required to buy health insurance and therefore are not subjected to penalties for not having it. However, they need to indicate to the IRS that they are exempt from the ACA by filing the IRS form 8965 along with their 1040 and indicating code “C.” Follow this link to the instructions for filling out form 8965.
Do not get anxious. Code “C” does not imply you are undocumented, since citizens or others, under certain circumstances, can also claim code “C.”
For more questions regarding taxes, immigration and health, please follow this link.