Although many individuals may not realize this, immigrants actually contribute billions of dollars in taxes to the United States each year. This number includes both documented and undocumented immigrants.
If you are an immigrant that is authorized to work in the United States, you will file the same taxes that United States natives pay. This includes local, state, and federal taxes.
This may make you wonder how undocumented immigrants contribute. Unauthorized immigrants often pay using the Individual Tax Identification Number. They are basically paying the U.S. government for benefits that they can’t even use.
What is an Individual Tax Identification Number?
The Individual Tax Identification Number (ITIN) is a tax processing number issued by the Internal Revenue Service (IRS) to ensure that people – including unauthorized immigrants – pay taxes even if they do not have a Social Security number and regardless of their immigration status.
These contributions do add up. Immigrant households across the country collectively paid $223.6 billion in federal taxes. They also paid $104.6 billion in combined states and local taxes according to data from 2014.
Undocumented immigrants contributed a lot of money as well. They paid approximately $11.7 billion in state and local taxes. If these individuals were legal this amount in taxes would increase to #13.9 billion.
It’s not just the states with a high amount of immigrant residents that make these contributions. These contributions are made all over the country.
Learn more about current data or immigration by checking out the source below.
Source: Immigration Impact