Wit Tax Season 2026 around the corner , Molimar wants to help people with thier common tax questions. Many people ask this question every tax season:
“I have an ITIN, my kids have Social Security numbers, and I still have to pay taxes.”
“I work 1099 and my friend at work got a refund.”
“I thought having kids meant money back.”
If this sounds like you, you are not alone. This is one of the most common and confusing tax questions, and it does not mean you did anything wrong.
Let’s explain it simply.
First, ITIN vs Social Security Number
Having an ITIN instead of a Social Security number does not automatically make you pay more taxes.
The IRS uses the same tax rules to calculate taxes.
The difference usually is how you are paid, not your immigration status.
Second, 1099 jobs work very differently than W-2 jobs
This is the biggest reason people owe taxes.
If you work a W-2 job, your employer takes taxes out of every paycheck.
You don’t see that money because it’s already paid during the year.
If you work a 1099 job, no taxes are taken out during the year.
You get paid the full amount, but taxes are due later.
Simple example:
Person A (W-2):
Earns $30,000
Taxes are taken out every paycheck
At tax time, they may get a refund
Person B (1099):
Earns $30,000
No taxes taken out all year
At tax time, they may owe
Same income. Different result.
Third, having kids helps, but it does not erase all taxes
Children can help reduce taxes, but they do not always eliminate them.
Some credits reduce the tax bill.
Some credits give refunds.
Some credits depend on income and job type.
If you work 1099, you still pay self-employment tax, even if you have children.
This is why someone with kids can still owe.
Fourth, comparing yourself to friends is misleading
Many clients say:
“My coworker got a refund.”
What you usually don’t know is:
• How much tax their employer already took out
• If they worked all year or part year
• If they had other income
• If their refund was just money they overpaid
A refund does not mean someone paid less tax.
It usually means they paid too much during the year.
Fifth, sometimes even W-2 workers owe taxes
This surprises people, but it happens.
If not enough tax was withheld, even W-2 workers can owe.
This is not rare and does not mean anyone did something wrong.
Bottom Line
Two people can work hard, have kids, and still get very different tax results.
The difference is usually:
• How the income was earned
• When taxes were paid
• Not immigration status
• Not because the preparer didn’t try
Our job as tax professionals is to use the law to reduce taxes as much as legally possible, not to promise refunds that the law does not allow.
In the next post, we’ll explain the difference between 1099 and W-2 in even more detail and what you can do to avoid surprises next year.