Paying taxes for undocumented nannies

[Anonymous]

Anonymous wrote:You just discovered it... ok. Yes, many people pay via a tax id number. If you want to apply for citizenship and are in the US, you need to start to establish yourself and that is one way to do it. They also pay via the products they buy.

A record of paying taxes does not qualify you for the US citizenship in any way, shape or form.

[Anonymous]

http://www.homeworksolutions.com/knowledge-center/my-nanny-is-not-a-legal-resident-what-should-i-do-about-employment-taxes/

[Anonymous]

You are supposed to verify legality through an I-9, so it's not as though the IRS is totally hands-off here ...

[Anonymous]

Anonymous wrote:http://www.homeworksolutions.com/knowledge-center/my-nanny-is-not-a-legal-resident-what-should-i-do-about-employment-taxes/

Very helpful, thanks.

[Anonymous]

Anonymous wrote:The government agencies aren't allowed to "talk" to each other. You need to pay your taxes. Drug dealers need to pay their taxes. That's why they go to jail when they get caught: tax evasion.

This. The IRS has special restrictions that protect the privacy of taxpayers' information, and they can't just share it with others, even others in the federal government. Plus, frankly, people who are here illegally tend not to file tax returns, so they don't get their withheld taxes refunded or their earned income tax credit, or whatever. This is good for the Treasury. The IRS doesn't care how you make your money, they only care whether you pay your taxes.

[Anonymous]

Anonymous wrote:

Anonymous wrote:The government agencies aren't allowed to "talk" to each other. You need to pay your taxes. Drug dealers need to pay their taxes. That's why they go to jail when they get caught: tax evasion.

This. The IRS has special restrictions that protect the privacy of taxpayers' information, and they can't just share it with others, even others in the federal government. Plus, frankly, people who are here illegally tend not to file tax returns, so they don't get their withheld taxes refunded or their earned income tax credit, or whatever. This is good for the Treasury. The IRS doesn't care how you make your money, they only care whether you pay your taxes.

Actually, I've received refunds for many years during which I reported income I've earned illegally. It all depends on your other deductions. If you have a mortgage, it helps.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The government agencies aren't allowed to "talk" to each other. You need to pay your taxes. Drug dealers need to pay their taxes. That's why they go to jail when they get caught: tax evasion.

This. The IRS has special restrictions that protect the privacy of taxpayers' information, and they can't just share it with others, even others in the federal government. Plus, frankly, people who are here illegally tend not to file tax returns, so they don't get their withheld taxes refunded or their earned income tax credit, or whatever. This is good for the Treasury. The IRS doesn't care how you make your money, they only care whether you pay your taxes.

Actually, I've received refunds for many years during which I reported income I've earned illegally. It all depends on your other deductions. If you have a mortgage, it helps.

I think PP's point was that many (if not most) people working illegally don't file returns, so don't get a refund. They have tax withheld, and may (or may not) be due a refund, but because they don't file, the government keeps more money.