Tax Obligations for DACA Recipients: What You Need to Know

Do DACA Recipients Have to File Taxes?

Yes - DACA (Deferred Action for Childhood Arrivals) recipients who have work authorization are required to file US federal income taxes. The IRS treats DACA recipients as resident aliens for tax purposes if they meet the Substantial Presence Test or hold an Employment Authorization Document (EAD). This means your worldwide income is subject to US taxation, and the same rules that apply to other authorized workers apply to you.

What Documents Do You Need?

Social Security Number and EAD

If you have DACA status and work authorization, you were issued a Social Security Number (SSN). This SSN is what you use to file your taxes - it is the same number on your EAD card. You will use Form 1040 (not Form 1040-NR, which is for nonresident aliens) to file your federal return.

Key documents to gather before filing:

• Social Security card or SSN documentation
• Employment Authorization Document (EAD)
• W-2 forms from all employers
• 1099 forms for any freelance or self-employment income
• Records of any other income received during the year

FICA Taxes: Social Security and Medicare

DACA recipients with work authorization are subject to FICA taxes - the 7.65% withheld from each paycheck for Social Security (6.2%) and Medicare (1.45%). Your employer matches this amount. This withholding happens automatically and counts toward your future Social Security and Medicare eligibility.

If you are self-employed, you pay both the employee and employer portions, totaling 15.3% on net self-employment income, reported on Schedule SE.

Can You Claim the Earned Income Tax Credit?

EITC Eligibility for DACA Recipients

Yes, DACA recipients with a valid SSN issued with work authorization may claim the Earned Income Tax Credit (EITC). The EITC is a refundable credit for low-to-moderate income workers. For 2025, the maximum credit ranges from $649 (no qualifying children) to $8,046 (three or more qualifying children).

To qualify, you must:

• Have earned income from wages or self-employment
• Have a valid SSN (not an ITIN)
• Meet adjusted gross income limits set by the IRS
• Not be claimed as a dependent on someone else's return

Federal Filing Deadlines

The standard federal tax filing deadline is April 15. For 2025 income, you must file Form 1040 by April 15, 2026. If you need more time, you can request an automatic 6-month extension using Form 4868, which moves the filing deadline to October 15 - but any taxes owed are still due by April 15.

State Tax Obligations

Do All States Require Filing?

Most states with an income tax require DACA recipients to file a state return if they earned income in that state. Nine states have no income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.

Your state return typically follows your federal return - if you are treated as a resident for federal purposes, most states will treat you the same way. Check your state's department of revenue website for specific residency rules.

Key Tax Situations for DACA Recipients

Common Mistakes to Avoid

• Filing with an ITIN instead of your SSN - if you have a SSN, you must use it
• Failing to report income from gig platforms like DoorDash or Uber
• Missing the EITC - many eligible DACA recipients do not claim this valuable credit
• Not filing a state return when required

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Understanding your exact filing requirements depends on your specific income, family situation, and state of residence. Get Your Personalized Form List to see exactly which forms you need to file.