Undocumented Immigrants Contribute to Tax Revenue
It's a little-known fact that undocumented immigrants contribute billions in federal taxes each year, through both filed tax returns and paycheck deductions. This phenomenon is explained by several factors outlined by the National Immigration Law Center:
- Paying taxes demonstrates compliance with federal tax laws.
- It can help establish "good moral character," which may be beneficial if they seek to legalize their status.
- Tax records can serve as proof of work history and presence in the U.S., potentially aiding in future eligibility for legal status if immigration reforms are enacted.
Critics argue that undocumented immigrants use stolen Social Security numbers to pay taxes. However, many pay taxes without Social Security numbers, using an Individual Taxpayer Identification Number (ITIN) instead. The Bipartisan Policy Center highlights that most ITIN tax returns are believed to be filed by undocumented immigrants, though some legal noncitizens also use this method.
In 2019, the IRS reported over 2.5 million tax returns filed with ITINs, contributing nearly $6 billion in taxes. Additionally, undocumented immigrants contribute billions to Social Security through payroll taxes. For instance, in 2010, unauthorized workers' payments added about $12 billion to Social Security tax revenue.
Social media posts by immigrant rights advocates have spotlighted this issue during tax season. The National Immigration Law Center has emphasized that undocumented immigrants fund programs they can't access. In 2017, Belén Sisa's viral post challenged misconceptions about undocumented immigrants, highlighting their contributions despite lacking access to benefits.
Jose Antonio Vargas, a Pulitzer Prize-winning journalist and activist, also shared his perspective on social media, noting that undocumented immigrants help fund systems that often work against them.