Undocumented immigrants pay billions of dollars in federal taxes annually, as experts estimate between tax returns filed and taxes deducted from paychecks. This surprising fact is often overlooked in the immigration debate.
A Surprising Fact Overlooked in the Immigration Debate
Undocumented immigrants pay billions of dollars in federal taxes annually, between tax returns filed and taxes deducted from paychecks, experts estimate.
Why Some Undocumented Immigrants Choose to Pay Taxes
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It shows they’re complying with federal tax laws.
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It can help them demonstrate “good moral character” if they later have an opportunity to legalize their immigration status.
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Tax return records could be used to document work history and presence in the US, steps that may help them be eligible for legal immigration status in the future if lawmakers pass immigration reform.
How Some Pay Taxes Despite Not Having Social Security Numbers
Critics of illegal immigration have long argued that undocumented immigrants who pay taxes are able to do so because they’re using stolen Social Security numbers. But millions of federal tax dollars are paid every year by people who don’t have Social Security numbers at all.
Immigrant Rights Advocates Speak Out on Social Media
Immigrant rights advocates’ posts on Facebook, Twitter, and TikTok during tax season have drawn attention to the issue. “Undocumented immigrants pay billions in taxes to fund programs they can’t access,” the National Immigration Law Center wrote in a series of recent social media posts.
Where Immigrants Come From and Where They Go After Reaching the US
Instead of using Social Security numbers, undocumented immigrants file their taxes using what’s known as an Individual Taxpayer Identification Number (ITIN). The Bipartisan Policy Center notes that most experts believe the vast majority of tax returns filed with ITINs today are filed by undocumented immigrants.
Some noncitizens who legally immigrated to the United States also pay taxes using this method. In 2019, according to the IRS, more than 2.5 million tax returns were filed using ITINs, accounting for nearly $6 billion in taxes.
Contributions to Social Security
In addition to tax return filings, officials estimate that undocumented immigrants also contribute billions to Social Security annually through payroll tax deductions. In 2010, the Social Security Administration estimated that payments from unauthorized workers accounted for about $12 billion in tax revenue for Social Security.
