Key Points About Immigrants and Taxes in the U.S.
Tax Contributions: • In 2019, immigrants paid $331 billion in federal taxes and $492 billion total including state and local taxes • Immigrants make up 13.5% of the U.S. population but pay close to 20% of individual income tax revenue
Undocumented Immigrants and Taxes: • Paid nearly $24 billion in federal taxes in 2019 • $16 billion went to Social Security and Medicare, programs they can't access • High tax compliance rates, often to support potential legalization efforts
Challenges Faced by Immigrant Taxpayers: • Language barriers limiting access to tax help • Lack of tax professionals serving non-English speakers • Limited availability of tax forms in languages other than English • High anxiety around tax filing due to immigration status concerns
Tax Filing Based on Immigration Status: • Green card and work visa holders file like U.S. citizens (Form 1040) • Undocumented immigrants use Individual Tax Identification Numbers (ITINs) • ITIN holders can claim most deductions but are ineligible for some tax credits
Resources for Immigrant Taxpayers: • Certifying Acceptance Agents (CAAs) to help with ITIN applications • Volunteer Income Tax Assistance (VITA) program for free tax preparation help
Key Takeaways: • Immigrants often overpay taxes due to lack of information and fear of mistakes • Filing taxes is crucial for maintaining legal status and potential citizenship applications • Undocumented immigrants contribute significantly to tax revenue despite limited access to benefits