How to File Taxes as a Newcomer in the US
The US tax system confused every immigrant we've ever met. This guide breaks it down step by step — plain language, no jargon.
Tax season doesn't have to be terrifying — once you know the rules.
The US tax system is complex even for Americans who grew up with it. For newcomers, it is a different language entirely — filled with acronyms, deadlines, and rules that shift depending on your visa status. But filing correctly protects you legally, may result in a meaningful refund, and establishes your relationship with the US financial system. This guide explains everything in plain language.
Do you need to file?
You must file a US tax return if you are a green card holder (lawful permanent resident) at any income level, or if you pass the substantial presence test: 183 or more days in the current calendar year, calculated as all days in the current year plus one-third of days in the prior year plus one-sixth of days two years ago.
Workers on H-1B, L-1, O-1, TN, and E-3 visas almost always pass the substantial presence test after their first partial year and are required to file Form 1040 (the resident alien return). Even if you earned zero US income, some nonresident visa holders must file Form 8843 — a statement for exempt individuals.
Key tax forms
Understanding which documents you will receive and file makes the process much less overwhelming:
- W-2Sent by your employer by January 31. Shows your total wages and all taxes withheld during the year.
- 1099-NECSent by any client or platform that paid you $600+ in freelance or contract income.
- 1042-SReports foreign income such as scholarships or treaty payments — common for students on F-1 visas.
- Form 1040The main federal tax return for resident aliens and citizens.
- Form 1040-NRUsed by nonresident aliens (typically your first partial year in the US).
- Form 8843Statement for exempt individuals — required even with no income for certain visa holders.
How federal income tax works
The US uses a progressive tax system: different portions of your income are taxed at different rates. Your employer withholds an estimate from each paycheck based on the W-4 form you completed when you started. You reconcile the actual amount owed on April 15.
Deductions & credits
Deductions reduce the income you are taxed on. Credits reduce your tax bill dollar-for-dollar. Most immigrants take the standard deduction — a flat amount subtracted from your taxable income that requires no itemization:
- Standard deduction 2025: $14,600 single, $29,200 married filing jointly
- Child Tax Credit: up to $2,000 per qualifying child
- Earned Income Tax Credit (EITC): for lower-income workers — worth up to $7,830 in 2025
- Child & Dependent Care Credit: up to $3,000 per child for care expenses while working
Free filing options
You should never pay more than $50 to file a straightforward tax return. Here are your options ranked from most to least recommended:
ITIN vs SSN for taxes
If you have an ITIN rather than a Social Security Number, you can still file a full tax return. If you are applying for your ITIN at the same time as filing your first return, attach a completed Form W-7 directly to your Form 1040. The IRS will process both together.
Important: ITINs expire if not used on a tax return for three consecutive years, or on a rolling schedule for certain number ranges (those beginning with 7 or 8). Check your ITIN expiration date and renew early to avoid delays at filing time.
The US tax system rewards those who understand it. File correctly from year one, claim every credit you are entitled to, and use free resources like VITA — and the tax system becomes a financial tool rather than a burden.
TJ moved to the US from Mongolia and spent years navigating the same financial barriers he now helps others avoid. He founded Mentora in 2024 to give every newcomer the guidance he wished he'd had on day one.
