Keep Factually independent
Whether you agree or disagree with our analysis, these conversations matter for democracy. We don't take money from political groups - even a $5 donation helps us keep it that way.
Fact check: Do undocumented immigrants pay Social Security and Medicare taxes using ITINs or fake SSNs?
Executive Summary
Undocumented immigrants do pay Social Security and Medicare taxes in multiple ways: some use Individual Taxpayer Identification Numbers (ITINs) to file and pay, while others work with false or borrowed Social Security numbers and have payroll taxes withheld that largely fund trust accounts to which they cannot claim benefits. Multiple studies and reporting concur that undocumented workers contribute billions to payroll taxes even though many cannot collect benefits, but published estimates and trends vary across sources and years [1] [2] [3]. The pattern is legally and administratively complex, producing differing headline figures but consistent underlying facts: payroll taxes are collected from undocumented labor through ITIN filings, payroll withholding under SSNs, and self-employment tax filings [4] [5].
1. What people claim — clear competing assertions and the core question driving debate
The key claims to extract are: that undocumented immigrants use ITINs to file taxes and thereby pay Social Security and Medicare taxes; that they use fake or someone else’s Social Security number to have payroll taxes withheld by employers; and that these contributions are substantial yet do not entitle undocumented workers to benefits. Advocates and some media emphasize the billions paid into the system and the unfairness of nonreceipt of benefits, while others stress that not all undocumented workers pay, and estimates of total contributions differ significantly by methodology and year [1] [2] [6]. These competing claims drive policy debates on immigration reform, tax enforcement, and program solvency.
2. Evidence that undocumented workers use ITINs and that payroll taxes are collected
IRS-issued Individual Taxpayer Identification Numbers exist precisely to allow taxpayers without Social Security numbers to comply with tax law. ITIN filings enable undocumented workers and other nonresident individuals to file federal tax returns and pay income and self-employment taxes, including Social Security and Medicare where applicable, as explained in tax guidance and reporting on tax filing behavior [3] [5]. Reporting also documents that many undocumented workers obtain jobs using someone else’s SSN or counterfeit numbers, leading employers to withhold payroll taxes that are credited to the SSN holder rather than the worker. This administrative reality means payroll taxes are collected even when the worker cannot later claim benefits tied to the withheld Social Security account [1] [7].
3. How much do they pay? Conflicting estimates and what drives the gaps
Published dollar estimates vary by study year, scope, and methodology. Older reporting cited roughly $13 billion in Social Security contributions from undocumented workers in 2016, while more recent aggregated analyses attribute tens of billions in federal, state, and local taxes to undocumented households—nearly $97 billion in a 2022 estimate—but the portion specifically earmarked for Social Security and Medicare differs by source [1] [2]. A June 2025 study provided a higher figure for a specific trend, while earlier work reported lower growth; these discrepancies reflect different sample frames, whether self-employment and withholding under false SSNs are included, and whether state and local taxes are counted alongside payroll taxes [6] [2].
4. The legal and payroll framework that produces collected taxes without benefit eligibility
U.S. payroll tax law requires employers to withhold Social Security and Medicare taxes for wages paid to employees unless a specific exemption applies. Noncitizen status alone does not exempt wages from payroll taxes; residents and many nonresidents working in the U.S. are subject to the same payroll tax rules as citizens, and self-employed individuals must pay self-employment tax using either SSNs or ITINs [8] [5]. Benefits eligibility, however, relies on legal authorization and a valid Social Security record tied to earnings credited to the true worker; where earnings are reported under another person’s SSN or the worker lacks work authorization, the worker may be unable to claim Social Security benefits even after contributing via payroll withholding [7].
5. What research gaps and institutional incentives shape the narrative
Estimates and narratives are shaped by data limitations, methodological choices, and organizational agendas. Government and academic studies must infer undocumented status indirectly (tax records, surveys, and modeling), creating uncertainty; advocacy groups emphasize fiscal contributions to argue for legalization, while enforcement-focused actors highlight rule-breaking or fraud associated with false SSNs, affecting which studies are cited and how figures are presented [2]. Media summaries can compress complex tax accounting into headline numbers, obscuring whether figures count payroll withholding under stolen SSNs, self-employment tax paid with ITINs, or broader tax contributions at multiple jurisdictional levels [6] [1].
6. Bottom line — what is established and what remains open
It is established that undocumented immigrants both pay and have payroll taxes withheld: some use ITINs to file and pay taxes including self-employment tax, and many are paid through payroll systems that withhold Social Security and Medicare taxes via SSNs that may not belong to them. Quantitative estimates of total contributions differ substantially across studies due to methodology, scope, and year, but multiple reputable sources agree the amounts are material and recurring [4] [2] [3]. Remaining uncertainties are the precise national totals apportioned to Social Security and Medicare in any single year and the scale of benefits lost to workers when contributions are credited to other SSN holders or when legal eligibility is absent.