Undocumented Immigrants Contribute Billions in Federal Taxes Annually
Undocumented immigrants in the U.S. are significant contributors to federal taxes, paying billions each year through tax returns and paycheck deductions. This often-overlooked facet of the immigration debate sheds light on the economic role these individuals play in American society.
Why It Matters
The contribution of undocumented immigrants to federal taxes challenges long-held perceptions about their economic impact. By highlighting their financial contributions, this issue calls for a reevaluation of policies and attitudes surrounding immigration, particularly during discussions of reform.
Key Developments
- Experts estimate that undocumented immigrants contribute billions in federal taxes annually.
- Many file taxes using Individual Taxpayer Identification Numbers (ITINs), as opposed to Social Security numbers.
- In 2019, over 2.5 million tax returns were submitted using ITINs, generating nearly $6 billion in tax revenue.
- Unauthorized workers reportedly contribute around $12 billion to Social Security each year through payroll taxes.
- Advocacy groups have recently spotlighted this issue on social media, aiming to shift public perception.
Full Report
Tax Contributions of Undocumented Immigrants
Undocumented immigrants pay substantial amounts in federal taxes, with experts estimating their total contributions in the billions annually. This includes money generated from tax returns filed with ITINs—a method used primarily by individuals without Social Security numbers. In 2019, the IRS reported that more than 2.5 million tax returns were submitted through this system, resulting in an influx of approximately $6 billion in tax revenue.
Payroll Deductions and Social Security
In addition to tax returns, undocumented immigrants contribute significantly to Social Security through payroll tax deductions. The Social Security Administration estimated in 2010 that payments from unauthorized workers accounted for about $12 billion in revenue. This financial influx supports social programs that these individuals are not eligible to access, directing attention to the paradox of their contribution.
Advocacy and Public Discourse
Over the years, immigrant rights advocates have used social media platforms to highlight the financial contributions of undocumented immigrants. For instance, Belén Sisa, a Deferred Action for Childhood Arrivals (DACA) recipient, went viral in 2017 for asserting her contributions amidst public criticism of undocumented immigrants. Similarly, journalist and activist Jose Antonio Vargas has publicly shared his experiences, emphasizing the irony of undocumented immigrants funding systems designed to detain and deport them.
Context & Previous Events
A version of this story first appeared in 2019, illustrating how the narrative around undocumented immigrants has evolved. During that year, social media posts brought widespread attention to the issue, challenging stereotypes and calling for a reconsideration of immigration policies.
