5 Common Mistakes Immigrants Make When Filing U.S. Taxes

Sep 02 2025 17:00

Moving to the United States comes with new financial opportunities—and new tax responsibilities. Many newcomers to Houston and surrounding suburbs like Katy, Sugar Land, and Pearland face challenges when they file their first U.S. tax return. Avoiding common errors can save money, reduce stress, and prevent issues with the IRS.

 

 

Mistake 1: Not understanding residency status

 

Tax rules differ for residents and non-residents. Filing under the wrong status may lead to overpaying taxes or missing treaty benefits. Determining residency correctly is one of the most important first steps.

 

 

Mistake 2: Forgetting to report foreign income

 

U.S. tax law generally requires reporting worldwide income. New immigrants often don’t realize that rental properties, investment accounts, or earnings from their home country must be included.

 

 

Mistake 3: Missing ITIN applications or renewals

 

If you don’t qualify for a Social Security Number, you’ll likely need an Individual Taxpayer Identification Number (ITIN). Missing this step can delay your tax filing and affect your eligibility for credits.

 

 

Mistake 4: Overlooking reporting requirements

 

Beyond income, certain financial accounts and assets must be reported through FBAR or FATCA. These forms can be confusing but are essential for staying compliant.

 

 

Mistake 5: Waiting until the last minute

 

U.S. tax deadlines are strict, and penalties for late or incorrect filings can be significant. Planning ahead ensures you have time to gather documents, understand requirements, and file correctly.

 

 

Quick tips for newcomers

 

  • Confirm your residency status before filing
  • Apply for or renew your ITIN as soon as possible
  • Gather documents for income both in the U.S. and abroad
  • Check if you need to file FBAR or FATCA forms
  • Seek bilingual guidance if English tax terminology feels overwhelming

 

 

 

A smoother start in the U.S.

 

At MABE International Advisors, we work with immigrants across Houston and nearby communities to make tax filing understandable and stress-free. Whether you’re applying for an ITIN, preparing a 1040-NR, or reporting foreign assets, our bilingual team can guide you through every step so you can settle into life in the U.S. with confidence.