Illegal immigrants and taxes

February 11, 11:08 AMImmigrant Community ExaminerWilfredo Rodriguez-Padilla

Previous Next

1 comment Print Email RSS Subscribe

Subscribe

Get alerts when there is a new article from the Immigrant Community Examiner. Read Examiner.com's terms of use.

Email Address   Include other special offers from Examiner.com Terms of Use

(AP Photo/ Manuel Balce Ceneta)

Despite their fear of deportation, illegal immigrants are flocking into tax-preparation offices and nonprofit organizations to get help filling state and federal income taxes.  Unbeknownst to the rest of the nation (or at least to a minority), they pay taxes just like everyone else.

“Anyone who has US-sourced income of a certain amount must pay US taxes” said Nancy Mathis, an IRS spokeswoman, in a Boston Globe article.

How do illegal immigrants pay taxes?

All they need is an Individual Tax Identification Number (ITIN). Experts believe that most of the people using ITINs are illegal aliens, although the system was originally designed for those living abroad with investments in the US. According to the IRS, the number of individuals using ITINs has increased dramatically in the past couple of years.

Why do illegal immigrants want to pay taxes?

Some illegal immigrants work in jobs that pay under-the-table, but the majority of them have jobs that withhold state and federal income taxes. Another reason many of them succumb to paying their taxes is that they believe doing so will help them become citizens.  They see it as a symbol of their commitment to the host country, as their duty, even though nothing drastic would happen to them if they failed to pay the IRS. For years, the IRS has maintained a policy of confidentiality. They don’t track a worker’s immigration status and that gives many illegal aliens another incentive to work with them.  

The big question is: How much do illegal immigrants contribute to the US government?

The figures and statistics about their contribution remain very controversial. Some argue that illegal aliens don’t contribute at all because they suck dry government programs and don’t pay nearly enough to make up for it. Others go as far as saying they pay more than they should because in the end they won’t be eligible for the Social Security they are paying for until their immigration status is resolved. Dr. William F. Ford a professor at Middle Tennessee State University and expert on taxes and immigration, calculates that illegal aliens contribute $428 billion dollars to the nation’s $13.6 trillion gross domestic product in 2006.

“If anything we need more immigrants coming into the country, not less, especially with the baby boomers retiring,” said Ford in an Associated Press article.

    My point:    

    Perhaps contributing to Uncle Sam encourages illegal immigrants to become legit. Something is certain though: paying taxes remains the one thing even illegal immigrants cannot escape.