How Much Do Illegals Pay in Taxes
People barely care to question how much do illegals pay in taxes. This is partly due to the wrong belief that illegal immigrants contribute losses rather than gains to the economy of the country. Illegals aren’t those who are engaged in several illegal online businesses to make money, rather, those who entered the United States without due process.
As the name implies, illegals are undocumented migrants in the US conceived by personalities like Donald Trump as invaders. If you aren’t aware of immigrant tax contributions, you’re seriously missing out on something.
First, understand that illegals contribute to the taxes in all 50 states of the country. Moreover, the contribution often amounts to billions and is active yearly. Furthermore, about $3.6 billion was the contribution of illegals in 2019, and $1.1 billion is estimated in 2020 as personal or state income charges.
Back to the question, how much do undocumented migrants pay in taxes each year? Apart from immigrant tax contribution to the economy, how do they get paid to have the money? This and a few more questions beg for answers.
Donald Trump’s Verdict on Illegals in the US
Trump, as usual, claimed during his campaign in 2016 that there is an emergency, probably security-oriented, at the southern border of the country. As earlier highlighted, he sees it as an ‘invasion’ which refers to the illegals or undocumented immigrants.
Interestingly, according to Aljazeera, the Supreme court cleared Donald Trump in 2019 to dispense billions of dollars from military funds for the erection of a wall against immigrants.
Trump, according to Vox, further added that illegals in the US cost the country billions of dollars.
Can this ever be true? It’s agreeable that several citizens are paying illegal immigrants under the table. But then, how would the illegal immigrants pay taxes to get to spend if they are not earning?
How Much Do Illegals Pay in Taxes in the US
You know, most immigrants or undocumented migrants stay on the payroll. Needless to talk of the illegals on the salary who incur payroll taxes just like every other US citizen.
Notably, the Institute on Taxation & Economic Policy estimated the taxes paid by illegals at $11.7 billion in 2014. This estimate also comprises the $7 billion excise and sales taxes, which refers to particular charges on vehicle registrations, gas sales, and electricity.
Furthermore, about $3.6 billion was the contribution of illegals in 2014 and $1.1 billion as personal or state income charges. Having confirmed these figures, would you still disagree that illegal immigrants pay taxes?
The US States that Benefit Most from Taxes Paid by Illegals
Annually, states in the US with most immigrants benefit from the influx of undocumented immigrants. So, how much do illegals pay in taxes to these states? Do these states publish an annual or monthly report on immigrant tax contributions? In any case, here are the states that benefited most in the 2010 report by American Immigration and the 2014 Institute on Taxation & Economic Policy report on illegals tax contribution in the US.
For the 2018 reports, the top 5 states are as follows:
California – $2.7 billion
Texas – $1.6 billion
Florida – $806.8 million
New York – $662.4 million
Illinois – $499.2 million
Top 20 States in 2019
(This data is retrieved from Institute on Taxation & Economic Policy report updated in 2019)
California – $3,199,394,000
Texas – $1,560,896,000
New York – $1,102,323,000
Illinois – $758,881,000
Florida – $598,678,000
New Jersey – $587,415,000
Georgia – $351,718,000
Maryland – $332,248,000
Washington – $316,624,000
North Carolina – $277,402,000
Virginia – $255,965,000
Arizona – $213,574,000
Massachusetts – $184,605,000
Colorado – $139,524,000
Pennsylvania – $134,872,000
Connecticut – $124,701,000
Tennessee – $107,465,000
Indiana – $92,200,000
Michigan – $86,692,000
Nevada – $86,101,000
Note: I retrieved only the top 20 earners—all 50 earning states to $11.7 billion.
How are Taxes Paid by Illegals Estimated?
It isn’t straightforward to arrive at an actual estimate due to several factors. Such delimiting factors may include the fact that IRS holds back taxes from illegals whose Social Security number (SSN) is fake. Also, illegal migrants may decide not to disclose their earnings or incomes, but some do file their taxes. Of course, this brings on the question, “how do illegal immigrants file taxes?”. Well, it’s quite common that undocumented migrants file taxes using their ITIN (Individual Taxpayer Identification Number), although they may be fake in some instances.
The estimates provided here are based on various sources.
First, the data is culled from the Migration Policy Institute and US Census Bureau. Do also note that Institute on Taxation & Economic Policy relies on the data provided by these two institutions to report the 2014 illegals taxes as updated in 2017 and estimated at $11.7 billion.
Secondly, the population of each state is being estimated and used to determine the number of illegals as well as to come up with an estimated figure which serves as the immigrant tax contribution.
Thirdly, the estimate also relies on the average income of illegals in the states. Even at that, it is difficult to ascertain because illegals do not disclose their income. Moreover, the estimate is also arrived at using state-specific taxes.
How Illegals File Taxes in the US
Still on the subject matter, how much do illegals pay in taxes, let’s shift a bit to how illegals file taxes. The so-called ‘invaders,’ according to Donald Trump, actually contribute primarily to the economy of the US. The taxes paid by illegals extend even onto federal benefits. Ironically, these undocumented migrants do not get to enjoy most of the benefits covered by the taxes they pay. Of course, this is a result of them not being documented in the US.
In 2015, the US Internal Revenue Service (IRS) launched a report showing that the agency received $4.4 million tax returns owing to workers with no SSNs, and most illegals do not have SSNs. The agency also reported that about $23.6 billion was the income tax and that the figure is restricted to workers with authentic SSNs only. The number would have been higher, had there been a record of workers with fake SSNs in the country.
How do illegal immigrants file taxes?
IRS allows illegals to file taxes even though they do not have access to several services. This would suggest that most of what documented citizens utilize stand firm with the tax contributions made by illegals.
Why Do Illegals File Taxes
The short answer is that it serves as a tool to inform the American government of the time they set into the US. Moreover, it shows that they have been actively paying taxes as contributions to the economy of the state. This may, in turn, do illegals favor of being granted permanent resident or, better still, made citizens of the US.
Why Illegals Are Vital for the US Economy
In 2017, illegals contributed about $27.2 billion in taxations to the US. This figure ridicules the 2010 report and the $11.7 billion in 2014. At this time of the year, the statistics are probably racking up, and before 2030, this figure would have hit over $50 billion.
In essence, this disputes Donald Trump’s Twitter post-claim in Dec. 18, 2019, that “illegal immigration costs the United States more than 200 Billion Dollars a year”.