Why Work Matters for ITIN Holders
Work is where identity and economics intersect for immigrant families. To your employer, you're a worker. To the government, you're a taxpayer. To yourself, you're building something. An undocumented immigrant without income is vulnerable — dependent on family, subject to exploitation, unable to invest in the future. An undocumented immigrant with income — even if it's freelance income of $1,000 a month — is independent, is paying taxes, is building a record, is surviving.
The law is clearer than most people realize: you cannot be a traditional W-2 employee without work authorization. But you can freelance. You can start a business. You can earn money doing work you're skilled at, for clients who value it, and report it to the IRS using your ITIN. This is not a gray area; it's explicitly legal. Freelancing and self-employment have different legal rules than employment — no work permit required, only an ITIN and willingness to pay your taxes. Millions of self-employed people in the U.S. do this; many of them are undocumented or DACA recipients.
What work gives you: Independence, income that you control, the ability to build savings and credit, a tax record that strengthens any future immigration application, and dignity.
What Are Your Work Options?
Your work options in the U.S. depend on your current immigration status. Here is an honest, clear breakdown:
With DACA (or TPS)
- Legally work for any employer
- No employer sponsorship required
- Can be hired like any U.S. citizen
- Employer cannot refuse you due to DACA status
- Must renew EAD before it expires
- Can also freelance or start a business
ITIN Only / Undocumented
- Cannot be a traditional W-2 employee
- Can legally freelance as independent contractor
- Can start and own a business
- Can join a worker cooperative
- Must use ITIN to report income and pay taxes
- Must file taxes on all income over $400/year
The Key Legal Distinction
U.S. law requires work authorization for employees (W-2 workers who complete an I-9 form). It does not require work authorization for independent contractors — freelancers and self-employed individuals. Employers are not required to verify a contractor's immigration status or ask for an I-9 when hiring a contractor.
Freelancing & Independent Contracting
Freelancing means providing services to clients under a contract, as a self-employed individual — not as an employee. This is a legal path to income for undocumented immigrants. Many professionals work this way: designers, developers, writers, translators, consultants, marketers, photographers, and many more.
How It Works in Practice
Get Your ITIN
Your ITIN is your tax ID number for freelancing. You will use it on W-9 forms (which clients ask you to fill out before paying you) and when filing your annual tax return reporting self-employment income.
Define Your Service and Set Your Rate
Decide what you offer — graphic design, finance consulting, translation, web development, writing, tutoring, etc. Research market rates on platforms like Upwork to understand what others charge.
Use a Written Contract
Always work with a written contract that states your scope of work, payment terms, and timeline. This protects you legally and professionally. Free contract templates are available at immigrantsrising.org.
Send an Invoice and Get Paid
Send clients a professional invoice after completing work. Free tools like Wave, PayPal, or a simple Google Docs template work well. Clients may pay via check, PayPal, Venmo, Zelle, or bank transfer.
Complete a W-9 When Asked
When a client asks for a W-9 form (how they report payments to the IRS), fill it out using your ITIN in the taxpayer ID field. This is completely legal and standard practice for ITIN holders.
File Taxes Each Year
If you earn more than $400 in self-employment income in a year, you must file a tax return and pay self-employment taxes. Use your ITIN. Filing taxes builds your official income record — which strengthens any future immigration applications — and keeps your ITIN active.
Set Aside 25–30% for Taxes
As a self-employed freelancer, taxes are not withheld from your payments. Set aside 25–30% of every payment for taxes. This covers self-employment tax (15.3%) plus income tax. Pay quarterly estimated taxes to the IRS to avoid penalties at year end.
Freelance Platforms & Income Sources
Upwork
Global freelance marketplace for tech, design, writing, finance, and more. Create a profile, set your rate, and apply for projects. Accepts ITIN for tax purposes.
Fiverr
Create "gigs" offering specific services at set prices. Good for designers, writers, translators, voice artists, and digital services. Accepts ITIN on tax forms.
Direct Clients
The highest-paying path. Market yourself through LinkedIn, a personal website, or word of mouth. Consulting clients directly avoids platform fees entirely.
Local Services
Landscaping, cleaning, tutoring, childcare, home repair, catering. These are typically paid in cash or check and reported on taxes using your ITIN.
TaskRabbit / Thumbtack
Platforms for handyman work, furniture assembly, moving, and other tasks. Report all earnings on your taxes using your ITIN.
Worker Cooperatives
A business owned and managed by its members. Cooperatives do not require I-9 verification for members. Find cooperatives at usa.coop or democracyatwork.info.
Starting Your Own Business
Undocumented immigrants can legally start, own, and operate a business in the United States. You do not need work authorization or citizenship to be a business owner. Here is what you need:
Get an ITIN (for sole proprietorship taxes)
For a sole proprietorship — the simplest structure — you use your ITIN to file taxes and report business income on Schedule C of your tax return. No separate registration needed to start.
Get an EIN (Employer Identification Number)
An EIN is a tax ID for your business, separate from your personal ITIN. Apply for one free at IRS.gov using your ITIN. An EIN is required for LLCs, is used on W-9s, and is needed for most business bank account applications.
Register Your Business (Optional for Sole Props)
Sole proprietors don't need to formally register in most states. If you form an LLC, register with your state's Secretary of State office. An LLC separates your personal assets from business liabilities.
Open a Business Bank Account
Use your EIN and ITIN to open a business checking account at Chase or Bank of America. Keeping business and personal finances separate is important for taxes and professionalism.
A Note on DACA and Job Offers
If you are waiting for DACA and a company wants to hire you as a traditional employee, you will need a valid EAD before you can legally start. Do not complete an I-9 form or accept W-2 employment without authorization — this can affect future immigration applications. Freelance or consulting work as an independent contractor is a legal alternative while you wait.
Immigrants Rising — Free Resource
Immigrants Rising (immigrantsrising.org) offers a free comprehensive toolkit for undocumented entrepreneurs and freelancers — including contract templates, ITIN guides, business start-up resources, and small business grants for undocumented founders.
All Work & Income Guides
What an ITIN authorizes, the legal pathways to earning income, and the tax obligations that come with self-employment.
Earn Income Legally
Taxes & Income Reporting
Money Topics for Workers
Frequently Asked Questions
Can I work with an ITIN?
Yes — but not as a traditional W-2 employee. An ITIN is a tax ID, not a work permit. With an ITIN you can legally freelance as an independent contractor, start and own a business, and earn self-employment income. You must report all income to the IRS using your ITIN. Traditional employment (W-2 with an I-9 form) requires an Employment Authorization Document (EAD), which DACA recipients have.
Can DACA recipients work legally?
Yes. Approved DACA recipients receive an Employment Authorization Document (EAD) that allows them to work legally for any U.S. employer. DACA recipients can also apply for a Social Security Number, get a driver's license in all 50 states, and are eligible for the same employment rights as other authorized workers.
Can I freelance without a work permit?
Freelancing and self-employment exist in a different legal category than employment. Many undocumented immigrants earn income through independent contracting — writing, design, translation, tutoring, construction, childcare, and other services. This income must be reported to the IRS using an ITIN. Clients who pay you more than $600 in a year may issue a 1099 form. Consult an immigration attorney to understand the considerations for your specific situation.
Can I start a business with an ITIN?
Yes. Undocumented immigrants can register and operate a business in the U.S. You can form an LLC or sole proprietorship using your ITIN and apply for an EIN (Employer Identification Number) from the IRS for business taxes. An ITIN or EIN is sufficient to open a business bank account, accept payments, and file business taxes. No Social Security Number or immigration status is required to start a business.
How do I pay taxes as a freelancer with an ITIN?
Freelancers and self-employed ITIN holders file taxes using their ITIN on Form 1040 and Schedule C. You will pay self-employment tax (15.3% on net earnings) plus income tax. Keep records of all income and business expenses. If you expect to owe more than $1,000 in taxes for the year, make quarterly estimated payments to avoid penalties.
Which freelance platforms accept ITIN holders?
Upwork, Fiverr, and many other freelance platforms allow sign-up with an ITIN for tax purposes. When filling out the W-9 or W-8 tax form on these platforms, enter your ITIN in the taxpayer ID field. Income earned through these platforms is taxable and must be reported when you file your annual tax return.