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Resident taxpayers pay tax on their worldwide income.2 By contrast, nonresident taxpayers generally pay tax only on their U.S.-source income.3 As defined in Sec. 7701(b), resident taxpayers include: * An individual who is a lawful permanent resident of the United States at any time during a calendar year (i.e., a green card holder);4 * An individual who meets the substantialpresence test;5 or * An individual who, in the year they arrive in the United States, qualifies to make and makes an election to be treated as a U.S. resident for that year (first-year election). All other non-U.S.-citizen taxpayers are, by default, deemed nonresidents.7 To meet the substantial-presence test, an individual must be physically present in the United States on at least: * 31 days during the current year, and * 183 days during the three-year period that includes the current year and the two years immediately before that, counting: all the days the individual was present in the current year, one-third of the days the individual was present in the first year before the current year, and one-sixth of the days the individual was present in the second year before the current year.8 Most undocumented immigrants likely meet the substantial-presence test and, as such, will be treated for U.S. income tax purposes as residents. ITINS The Social Security Administration will issue Social Security numbers (SSNs) only to U.S. citizens, permanent residents, and temporary residents authorized to work in the United States.16 In light of this restriction on undocumented immigrants" ability to secure a valid SSN, those who wish to be tax-compliant and file tax returns must secure ITINs.17 However, having an ITIN does not entitle its holder to Social Security benefits or change the holder's employment or immigration status under U.S. law.18 The IRS has set forth a clear methodology for obtaining an ITIN.192 The applicant must submit a Form W-7, Application for IRS Individual Taxpayer Identification Number, with the income tax return for which the ITIN is necessary. The Social Security and Medicare taxes are imposed on both employees and employers,32 but the FUTA tax is imposed only on the employer.33 Wage ceilings apply to the Social Security tax component ($168,600 in 2024; $176,100 in 2025)34 and the FUTA component ($7,000 in both years);35 however, no wage ceiling applies to the Medicare tax component.36 Employment taxes generally are universally applied whether a person is a U.S. citizen or merely a resident.