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, and you must file a US federal tax return (Form 1040 or 1040-NR) by April 15, 2026. Your obligations depend on your visa type, how long you’ve been in the US, and whether you pass the “Substantial Presence Test.” This guide explains how to tell which category you fall into and how to file — but because tax figures change every year, always confirm current amounts on irs.gov before filing.

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 over the current year and the preceding two years, using a weighted formula: current-year days × 1, prior-year days × 1/3, and days from the year before that × 1/6.

2. Your First Year: Dual-Status Tax Return

Specifically, If you arrived in the USA in 2025, your first year is often 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 than a standard return. For the resident period you file Form 1040; for the nonresident period you attach a 1040-NR as a statement. Because these returns are technical, a tax professional or specialized software is often worth it for your first year.

Elections that can help newcomers: Two different elections are sometimes confused. Under IRC §7701(b)(4), the “First-Year Choice,” certain newcomers who don’t yet pass the Substantial Presence Test in their arrival year may elect to be treated as a resident for part of that year. Separately, under IRC §6013(g)/(h), a nonresident married to a US citizen or resident may elect to be treated as a resident for the full year and file jointly. Both can significantly affect your tax — because the rules are technical, confirm which applies to you with the IRS or a tax professional.

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 (2025 Tax Year — Filed April 2026)

The brackets below are for the 2025 tax year — the return most newcomers file by April 15, 2026. The IRS adjusts these figures every year (the 2026-tax-year numbers apply to income earned in 2026 and are filed in 2027), so confirm the current-year figures on irs.gov before filing.

The USA uses a progressive tax system: you only pay the higher rate on income above each threshold, not on your whole income.

Standard Deduction (2025 tax year): Single: $15,750 | Married Filing Jointly: $31,500 | Head of Household: $23,625. These amounts rise each year — for the 2026 tax year they increase to $16,100 / $32,200 / $24,150. Confirm the figure for your filing year on irs.gov.

Note: Nonresident aliens generally cannot claim the standard deduction (with limited treaty-based exceptions, such as students from India).

5. What Income Must New Immigrants Report?

If You Are a Resident Alien:

You must report your worldwide income — all income earned anywhere 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 — $15,750 (single) or $31,500 (married filing jointly) for the 2025 tax year; confirm the current amount on irs.gov.
• Student Loan Interest Deduction — up to $2,500.
• Child Tax Credit — up to $2,200 per qualifying child for the 2025 tax year (the child must have a valid SSN); confirm the current amount on irs.gov.
• Earned Income Tax Credit (EITC) — available to resident aliens who meet the 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 a limited amount of foreign earnings (the exclusion is indexed annually; confirm the current-year figure on irs.gov).

For Nonresident Aliens (filing Form 1040-NR):

• Certain itemized deductions connected to US income
• State and local income tax deductions
• Deductions connected with US business income
• Treaty-based benefits where applicable

7. US Tax Treaties: Reduce Your Tax Bill

The USA has income tax treaties with many countries that can reduce or eliminate US tax 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

Treaty benefits are not applied automatically — you must claim them on your return (often via Form 8833). Countries with US tax treaties include Canada, the UK, Germany, France, India, China, Japan, Australia, Mexico, and South Korea, among others. Look up your specific treaty on the IRS “United States Income Tax Treaties A to Z” page at irs.gov.

8. State Income Taxes

In addition to federal taxes, most US states have their own income tax. Your state tax obligation depends on which state you live in, when you established residency there, and your income during that period. A handful of states have no state income tax at all (such as Texas, Florida, Nevada, Washington, Wyoming, South Dakota, Alaska, Tennessee, and New Hampshire), while others range from flat rates to progressive rates that can exceed 10% in the highest-tax states. State rates change frequently, so check your specific state’s department of revenue for current figures.

9. FBAR and FATCA: Foreign Account Reporting

As a US resident alien, you may have additional reporting requirements for 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 (the deadline follows the tax deadline, with an automatic extension to October). Penalties for non-filing can be significant and are adjusted for inflation, so file even small qualifying accounts.

FATCA (Form 8938)

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

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

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 method:
   • Resident aliens: mainstream software such as TurboTax, H&R Block, or FreeTaxUSA.
   • Nonresident aliens: Sprintax is one of the few consumer options built for Form 1040-NR; most mainstream software does not handle nonresident returns.
   • Dual-status returns: a tax professional is strongly recommended.
7. File by April 15, 2026 (or request a 6-month extension with Form 4868 — note this extends the filing deadline, not the payment deadline).
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 (or vice versa): using the wrong form can cause you to overpay 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: foreign accounts totaling over $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 resident-only software as a nonresident: mainstream tools generally don’t handle nonresident returns correctly.
• Missing the filing deadline: the IRS charges late-filing and late-payment penalties — request an extension if needed.

12. Illustrative Scenarios

The following are illustrative examples showing how the rules apply in common situations. They are not real individuals.

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

Someone who moved from India to Texas in March 2025 and passed the Substantial Presence Test by late 2025 would file Form 1040 as a resident alien, report US salary, and check the US–India tax treaty for any applicable benefits. They would also file an FBAR if a home-country account exceeded $10,000 at any point.

Scenario 2: Student from France on F-1 Visa

An F-1 student is generally exempt from the Substantial Presence Test for their first five years, so they would typically file Form 1040-NR as a nonresident alien. The US–France tax treaty may exempt certain scholarship income. Nonresident-specific software such as Sprintax handles this type of return.

Scenario 3: Canadian Green Card Holder Moving to California

Someone who received a Green Card and moved from Canada to California mid-year is a resident alien from the day they received the Green Card. They would file a dual-status return (Form 1040 plus a 1040-NR statement for the earlier period) and could claim the Foreign Tax Credit for Canadian taxes paid on income earned before the move.

Frequently Asked Questions

Do immigrants have to file US taxes?

Yes, if you earned income in the USA or meet the residency requirements. Resident aliens report worldwide income; nonresident aliens 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 deadline for the 2025 tax year is April 15, 2026. Nonresident aliens without wages subject to withholding generally have until June 15, 2026. You can request an automatic 6-month extension with Form 4868, but this extends only the filing deadline — not the payment deadline.

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

File as soon as possible. The IRS offers programs such as the Streamlined Filing Compliance Procedures for taxpayers who were unaware of their obligations. Late-filing penalties are generally lower than the consequences of not filing at all.

Can I claim my foreign tax payments as a credit?

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

Important Disclaimer

This content is for educational and informational purposes only and does not constitute tax, financial, or legal advice. MoneyAbroadGuide.com is not a licensed tax advisor. US tax rules — including brackets, deductions, credits, thresholds, and deadlines — are set by the IRS and change every year. Always verify current figures at irs.gov, and consult a qualified US tax professional (CPA or Enrolled Agent) regarding your specific situation, particularly for dual-status returns, FBAR/FATCA reporting, or tax treaty claims.

This guide on taxes for new immigrants to the USA 2026 is updated for 2026. Bookmark it for reference.

This guide on taxes for new immigrants to the USA 2026 is updated for 2026. Bookmark it for reference.

Official Resources

To confirm the details above, you can consult these official sources directly:

• IRS — Taxation of Nonresident Aliens / New Immigrants

About Talal Eddaouahiri

Founder & Financial Writer at 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 →