Taxes for New Immigrants to the USA (2026): Complete IRS Guide

Quick Answer: Taxes for New Immigrants to the USA (2026)

If you moved to the USA in 2025, you are likely a “dual-status alien” or “resident alien” for tax purposes. You must file a US federal tax return (Form 1040 or 1040-NR) by April 15, 2026. Your tax obligations depend on your visa type, how long you’ve been in the US, and whether you pass the “Substantial Presence Test.”

1. Resident Alien vs. Nonresident Alien: Which Are You?

Your tax status in the USA is determined by the IRS — not by your immigration status. There are two primary tests:

The Green Card Test

If you are a lawful permanent resident (Green Card holder) at any time during the tax year, you are treated as a resident alien for the entire year for US tax purposes.

The Substantial Presence Test

You are considered a resident alien if you meet both of these criteria:

• Present in the USA for at least 31 days during the current year, AND
• Present in the USA for at least 183 days during the current year and the preceding two years (using a weighted formula: current year days × 1, prior year days × 1/3, year before × 1/6)

2. Your First Year: Dual-Status Tax Return

If you arrived in the USA in 2025, your first year is almost always a “dual-status year.” This means:

• From January 1, 2025 to your arrival date: you were a nonresident alien (taxed only on US-source income)
• From your arrival date to December 31, 2025: you were a resident alien (taxed on worldwide income)

Dual-status returns are more complex. For the resident period, you file Form 1040. For the nonresident period, you attach a 1040-NR as a statement. Consider using a tax professional or Sprintax for your first-year return.

First-Year Election: Married immigrants who otherwise would be nonresidents can elect to be treated as residents for the entire year (Form 1040, joint filing) if their spouse is a US citizen or resident. This is called the “First Year Choice” under IRC Section 6013(g). It can significantly reduce your tax liability.

3. Getting Your Tax ID: SSN or ITIN

To file US taxes, you need either a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN).

• SSN: Apply at the Social Security Administration. Available to those with work authorization (most work visas, Green Card holders)
• ITIN: Apply with IRS Form W-7. For those who cannot get an SSN but have a US tax obligation

➡️ Full guide: How to Get an ITIN Number in the USA (2026)

➡️ Comparison: ITIN vs SSN: Which Do You Need?

4. US Federal Tax Brackets 2026

The USA uses a progressive tax system. You only pay the higher rate on income above each threshold.

Standard Deduction 2026: Single: $15,000 | Married Filing Jointly: $30,000 | Head of Household: $22,500

Note: Nonresident aliens cannot claim the standard deduction (except residents of Canada, Mexico, and students from India under treaty provisions).

5. What Income Must New Immigrants Report?

If You Are a Resident Alien:

You must report your worldwide income — all income earned anywhere in the world during the period you are a US resident, including:

• US wages, salaries, tips
• Foreign wages earned after your US residency start date
• Interest and dividends from US and foreign accounts
• Rental income from property anywhere in the world
• Capital gains from sales of assets
• Foreign pensions and retirement income

If You Are a Nonresident Alien:

You only report US-source income, which includes:

• Wages and salaries for work performed in the US
• US-source interest (with some exceptions)
• US-source dividends
• US rental income
• Income effectively connected with a US trade or business (ECI)

6. Key Tax Deductions and Credits for Immigrants

For Resident Aliens (filing Form 1040):

• Standard Deduction — $15,000 (single) or $30,000 (married filing jointly)
• Student Loan Interest Deduction — up to $2,500
• Child Tax Credit — up to $2,000 per qualifying child (if you have a valid SSN)
• Earned Income Credit (EITC) — available to resident aliens meeting income requirements
• Foreign Tax Credit — prevents double taxation on foreign income already taxed abroad
• Foreign Earned Income Exclusion (FEIE) — if you work abroad while a US resident, you may exclude up to $126,500 of foreign earnings (2024 amount, 2026 amount to be confirmed by IRS)

For Nonresident Aliens (filing Form 1040-NR):

• One personal exemption (if treaty permits)
• State and local income tax deductions
• Casualty and theft losses
• Deductions connected with US business income

7. US Tax Treaties: Reduce Your Tax Bill

The USA has income tax treaties with over 65 countries that can significantly reduce or eliminate US taxes on certain types of income. Common benefits include:

• Reduced withholding rates on dividends, interest, and royalties
• Exemption of certain scholarship and fellowship income (especially for students)
• Exemption of certain employment income during the first few years in the USA

Key countries with US tax treaties: Canada, UK, Germany, France, India, China, Japan, Australia, Mexico, South Korea, and many more. Look up your specific treaty on the IRS website (irs.gov/businesses/international-businesses/united-states-income-tax-treaties-a-to-z).

8. State Income Taxes

In addition to federal taxes, most US states have their own income tax. As a newcomer, your state tax obligation depends on:

• Which state you live in
• When you established residency in that state
• Your income during the state residency period

9. FBAR and FATCA: Foreign Account Reporting

As a US resident alien, you may have additional reporting requirements if you hold financial accounts outside the USA:

FBAR (FinCEN Form 114)

Required if the total value of all your foreign financial accounts exceeds $10,000 at any point during the year. File electronically through the BSA E-Filing System by April 15 (auto-extension to October 15). Penalties for non-filing: up to $10,000 per violation for non-willful violations.

FATCA (Form 8938)

Required if you hold specified foreign financial assets exceeding certain thresholds ($50,000 for single filers living in the US; higher thresholds for those living abroad). Filed with your Form 1040.

10. Step-by-Step: Filing Your First US Tax Return as an Immigrant

1. Determine your tax status (resident alien, nonresident alien, or dual-status)
2. Get your SSN or ITIN — required to file
3. Gather your income documents: W-2 (wages), 1099 forms (freelance/interest/dividends), 1042-S (foreign income withholding)
4. Determine your deductions and credits
5. Check for applicable tax treaties with your home country
6. Choose your filing software:
   • Resident aliens: TurboTax, H&R Block (full service available), FreeTaxUSA
   • Nonresident aliens: Sprintax (the only major online software designed for nonresidents)
   • Dual-status returns: Tax professional strongly recommended
7. File by April 15, 2026 (or request a 6-month extension with Form 4868)
8. Report foreign accounts if applicable (FBAR + Form 8938)

11. Common Tax Mistakes New Immigrants Make

• Filing as a resident when you’re a nonresident: Using the wrong form can cause you to over-pay taxes or trigger IRS issues
• Not reporting worldwide income: Resident aliens must report all global income — many newcomers forget foreign interest, dividends, or rental income
• Missing FBAR filing: Even small foreign accounts ($10,000+) require FBAR reporting — penalties are severe
• Not claiming applicable tax treaty benefits: You must actively claim treaty benefits on your return — they are not applied automatically
• Using US-only tax software as a nonresident: TurboTax and H&R Block don’t properly handle nonresident returns — use Sprintax instead
• Missing the filing deadline: The IRS charges late filing and late payment penalties — request an extension if needed

12. Real Newcomer Scenarios

Scenario 1: Software Engineer from India on H-1B Visa

Arnav moved from Mumbai to Texas in March 2025. He passed the Substantial Presence Test by late 2025. He files Form 1040 as a resident alien, reports his US salary, and checks the US-India tax treaty for any applicable deductions. He also files FBAR because he kept his Indian savings account (balance exceeded $10,000 at some point).

Scenario 2: Student from France on F-1 Visa

Marie arrived in New York in September 2024 for a master’s degree. F-1 students are generally exempt from the Substantial Presence Test for 5 years. She files Form 1040-NR as a nonresident alien. The US-France tax treaty exempts her scholarship income from US tax. She uses Sprintax to file her return.

Scenario 3: Canadian PR Moving to California

Sophie obtained her Green Card and moved from Toronto to San Francisco in June 2025. She is a resident alien from the day she received her Green Card. She files a dual-status return: Form 1040 as the main return, plus a 1040-NR statement for the period before her Green Card. She claims the Foreign Tax Credit for Canadian taxes paid on income earned before her move.

Frequently Asked Questions

Do immigrants have to file US taxes?

Yes, if you earned income in the USA or meet residency requirements. Resident aliens must report worldwide income. Nonresident aliens must report US-source income. Even if you owe no tax, you may still need to file a return or informational forms.

When is the US tax filing deadline for 2026?

The federal tax return deadline for the 2025 tax year is April 15, 2026. Nonresident aliens who don’t have wages subject to withholding have until June 15, 2026. You can request an automatic 6-month extension using Form 4868, but this only extends the filing deadline — not the payment deadline.

What if I haven’t filed US taxes since arriving?

File as soon as possible. The IRS has a Voluntary Disclosure Program and Streamlined Filing Compliance Procedures for taxpayers who were unaware of their filing obligations. Late filing penalties are generally lower than the penalties for non-filing.

Can I claim my foreign tax payments as a credit on my US return?

Yes, if you are a resident alien filing Form 1040. The Foreign Tax Credit (Form 1116) allows you to offset US taxes by the amount of income taxes you paid to foreign governments on the same income, preventing double taxation.

About Talal Eddaouahiri

Founder & Editor of MoneyAbroadGuide.com. A Moroccan immigrant who settled in the United States in 2015, Talal opened bank accounts and built credit from zero in both the US and Canada. His background is in retail banking and customer relations, and he writes independent, source-based guides (FCAC, FINTRAC, OSFI, CRA, IRS, CDIC) to help newcomers navigate their first financial steps. Read his full profile →