Paying taxes for undocumented nannies

[Anonymous]

I've discovered while interviewing that there are undocumented nannies who actually pay taxes (!!!). How does this work - in that by applying for a Tax ID number, they are in a way presenting themselves to the gov't as illegal aliens... and then when the employers report the wages paid towards them, they are in a way admitting to hiring an undocumented person. Why don't we hear of the gov't after them?

Leaving out judgment (and the bandwagons of how we should not hire illegal nannies), please let me know if I have this right. I'm just trying to understand how it works.

[Anonymous]

I believe this is correct for many undocumented workers. Yes.

[Anonymous]

Tax ID #s arent just for illegal aliens. The govt has no real way of knowing. And honestly they are collecting money from that person they don't care.

[Anonymous]

Anonymous wrote:I've discovered while interviewing that there are undocumented nannies who actually pay taxes (!!!). How does this work - in that by applying for a Tax ID number, they are in a way presenting themselves to the gov't as illegal aliens... and then when the employers report the wages paid towards them, they are in a way admitting to hiring an undocumented person. Why don't we hear of the gov't after them?

Leaving out judgment (and the bandwagons of how we should not hire illegal nannies), please let me know if I have this right. I'm just trying to understand how it works.

Paying taxes and being documented are two unrelated things. Anyone with a SSN can pay taxes. Whether they are or are not legal to work is a completely different matter.

Example A. A foreign student in the U.S. on an F-1 visa picks up some nannying hours. She has a SSN but is not allowed to work. She works anyway. She claims her nannying income and pays taxes on it. Her employer can also report employer taxes paid on the nanny's behalf.

Example B. A guest worker in the U.S. on an H1-B visa picks up a second job after hours. She has a SSN but is not allowed to work for any other employer except her sponsor. She works anyway. She reports all her income and pays taxes on the total amount. Her employers also withhold and pay taxes on her behalf.

Etc. Etc.

The reason the government doesn't go after them is that IRS and USCIS are two different, unrelated entities. They do not serve as enforcement agents for one another. The IRS also cares that you pay taxes on what you earn, and that your tax burden matches what your employer(s) have claimed for you. IRS couldn't care less if you earned that income legally. As long as you paid your taxes, IRS has no problem with you. The USCIS would have to catch you independently of the whole tax issue.

Believe me, I know. I've done it for years.

[Anonymous]

Yes, this is correct. And as to why the gov't does not 'go after them' - I am not in a position to say except to tell you that it is this gov't who made it possible for undocumented workers to be able to pay taxes and they are aware that this group of people will have to work somewhere to earn income to pay taxes on....

[Anonymous]

Anonymous wrote:

Anonymous wrote:I've discovered while interviewing that there are undocumented nannies who actually pay taxes (!!!). How does this work - in that by applying for a Tax ID number, they are in a way presenting themselves to the gov't as illegal aliens... and then when the employers report the wages paid towards them, they are in a way admitting to hiring an undocumented person. Why don't we hear of the gov't after them?

Leaving out judgment (and the bandwagons of how we should not hire illegal nannies), please let me know if I have this right. I'm just trying to understand how it works.

Paying taxes and being documented are two unrelated things. Anyone with a SSN can pay taxes. Whether they are or are not legal to work is a completely different matter.

Example A. A foreign student in the U.S. on an F-1 visa picks up some nannying hours. She has a SSN but is not allowed to work. She works anyway. She claims her nannying income and pays taxes on it. Her employer can also report employer taxes paid on the nanny's behalf.

Example B. A guest worker in the U.S. on an H1-B visa picks up a second job after hours. She has a SSN but is not allowed to work for any other employer except her sponsor. She works anyway. She reports all her income and pays taxes on the total amount. Her employers also withhold and pay taxes on her behalf.

Etc. Etc.

The reason the government doesn't go after them is that IRS and USCIS are two different, unrelated entities. They do not serve as enforcement agents for one another. The IRS also cares that you pay taxes on what you earn, and that your tax burden matches what your employer(s) have claimed for you. IRS couldn't care less if you earned that income legally. As long as you paid your taxes, IRS has no problem with you. The USCIS would have to catch you independently of the whole tax issue.

Believe me, I know. I've done it for years.

Your examples are irrelevant , you are citing two cases of LEGAL immigrant (or better legal aliens) who work illegally. The question OP was asking seemed to be how illegal immigrants ( so people who are not in the country legally) can pay taxes

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I've discovered while interviewing that there are undocumented nannies who actually pay taxes (!!!). How does this work - in that by applying for a Tax ID number, they are in a way presenting themselves to the gov't as illegal aliens... and then when the employers report the wages paid towards them, they are in a way admitting to hiring an undocumented person. Why don't we hear of the gov't after them?

Leaving out judgment (and the bandwagons of how we should not hire illegal nannies), please let me know if I have this right. I'm just trying to understand how it works.

Paying taxes and being documented are two unrelated things. Anyone with a SSN can pay taxes. Whether they are or are not legal to work is a completely different matter.

Example A. A foreign student in the U.S. on an F-1 visa picks up some nannying hours. She has a SSN but is not allowed to work. She works anyway. She claims her nannying income and pays taxes on it. Her employer can also report employer taxes paid on the nanny's behalf.

Example B. A guest worker in the U.S. on an H1-B visa picks up a second job after hours. She has a SSN but is not allowed to work for any other employer except her sponsor. She works anyway. She reports all her income and pays taxes on the total amount. Her employers also withhold and pay taxes on her behalf.

Etc. Etc.

The reason the government doesn't go after them is that IRS and USCIS are two different, unrelated entities. They do not serve as enforcement agents for one another. The IRS also cares that you pay taxes on what you earn, and that your tax burden matches what your employer(s) have claimed for you. IRS couldn't care less if you earned that income legally. As long as you paid your taxes, IRS has no problem with you. The USCIS would have to catch you independently of the whole tax issue.

Believe me, I know. I've done it for years.

Your examples are irrelevant , you are citing two cases of LEGAL immigrant (or better legal aliens) who work illegally. The question OP was asking seemed to be how illegal immigrants ( so people who are not in the country legally) can pay taxes

My dear, I don't believe you understand the finer points of difference between undocumented, legal, illegal, alien, immigrant, non-immigrant and sundry. The person who is legal today can be illegal tomorrow. The answer to OP's question is "as long as you have an SSN or a tax ID, you can pay taxes regardless of whether or not you are in the country legally, and whether or not your current status makes you legal to work or not."

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I've discovered while interviewing that there are undocumented nannies who actually pay taxes (!!!). How does this work - in that by applying for a Tax ID number, they are in a way presenting themselves to the gov't as illegal aliens... and then when the employers report the wages paid towards them, they are in a way admitting to hiring an undocumented person. Why don't we hear of the gov't after them?

Leaving out judgment (and the bandwagons of how we should not hire illegal nannies), please let me know if I have this right. I'm just trying to understand how it works.

Paying taxes and being documented are two unrelated things. Anyone with a SSN can pay taxes. Whether they are or are not legal to work is a completely different matter.

Example A. A foreign student in the U.S. on an F-1 visa picks up some nannying hours. She has a SSN but is not allowed to work. She works anyway. She claims her nannying income and pays taxes on it. Her employer can also report employer taxes paid on the nanny's behalf.

Example B. A guest worker in the U.S. on an H1-B visa picks up a second job after hours. She has a SSN but is not allowed to work for any other employer except her sponsor. She works anyway. She reports all her income and pays taxes on the total amount. Her employers also withhold and pay taxes on her behalf.

Etc. Etc.

The reason the government doesn't go after them is that IRS and USCIS are two different, unrelated entities. They do not serve as enforcement agents for one another. The IRS also cares that you pay taxes on what you earn, and that your tax burden matches what your employer(s) have claimed for you. IRS couldn't care less if you earned that income legally. As long as you paid your taxes, IRS has no problem with you. The USCIS would have to catch you independently of the whole tax issue.

Believe me, I know. I've done it for years.

Your examples are irrelevant , you are citing two cases of LEGAL immigrant (or better legal aliens) who work illegally. The question OP was asking seemed to be how illegal immigrants ( so people who are not in the country legally) can pay taxes

My dear, I don't believe you understand the finer points of difference between undocumented, legal, illegal, alien, immigrant, non-immigrant and sundry. The person who is legal today can be illegal tomorrow. The answer to OP's question is "as long as you have an SSN or a tax ID, you can pay taxes regardless of whether or not you are in the country legally, and whether or not your current status makes you legal to work or not."

Just because someone entered the country legally doesn't mean that they are still legal. I assume that you are addressing the very small percentage of people who entered the country illegally? They are the minority. Most of the illegal immigrants came in on tourist visas, student visas, fiance visas, etc. The reason they entered the country may or may not be valid anymore, but either way, the visa expired. Their passport may have expired. But they got numbers while they were still legally here.

[Anonymous]

You have brought up an excellent point OP with your posting.

If the govt. can MAKE MONEY, they won't be so quick to point out any illegal activity since they are benefiting greatly from the revenue involved.

There were and are numerous undocumented workers in the U.S. + the majority of them use fake SS cards which still collect tax money. The money often goes unclaimed so the govt. ends up with it all!

However if the govt. feels it is actually losing money, then it will take action to get what they are owed.

But the other way around?? They won't waste their time.

[Anonymous]

Anonymous wrote:You have brought up an excellent point OP with your posting.

If the govt. can MAKE MONEY, they won't be so quick to point out any illegal activity since they are benefiting greatly from the revenue involved.

There were and are numerous undocumented workers in the U.S. + the majority of them use fake SS cards which still collect tax money. The money often goes unclaimed so the govt. ends up with it all!

However if the govt. feels it is actually losing money, then it will take action to get what they are owed.

But the other way around?? They won't waste their time.

Why would they? Most people working illegally yet paying taxes are in the working poor or lower middle class. These people would get money back from tax returns, and when they don't, the government has more money to use. Americans complain about illegals taking jobs from Americans, yet many of the jobs are things that most Americans would never want to do, either due to the job itself or the job conditions.

[Anonymous]

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.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You have brought up an excellent point OP with your posting.

If the govt. can MAKE MONEY, they won't be so quick to point out any illegal activity since they are benefiting greatly from the revenue involved.

There were and are numerous undocumented workers in the U.S. + the majority of them use fake SS cards which still collect tax money. The money often goes unclaimed so the govt. ends up with it all!

However if the govt. feels it is actually losing money, then it will take action to get what they are owed.

But the other way around?? They won't waste their time.

Why would they? Most people working illegally yet paying taxes are in the working poor or lower middle class. These people would get money back from tax returns, and when they don't, the government has more money to use. Americans complain about illegals taking jobs from Americans, yet many of the jobs are things that most Americans would never want to do, either due to the job itself or the job conditions.

Absolutely...that is why I think when people complain about people working off the books, what they do not realize is that for every person working under the table there are dozens more that use fake SS# cards that add revenue to the government's secret fund...

[Anonymous]

And the government isn't going to give that all up.

When was the last time you saw the IRS go after someone who was using a fake SSN that deducted unclaimed monies??

[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.

Exactly. Anyone and everyone can be prosecuted for tax evasion.

[Anonymous]

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.