How much do undocumented immigrants contribute to Social Security and why don’t they receive corresponding benefits?

1. How much do undocumented immigrants contribute—numbers and context

Estimates vary by methodology, but prominent analyses and advocacy groups converge on the scale: undocumented workers paid about $25 billion into Social Security in 2022 and an estimated $26.2 billion in 2023, figures that come from tax‑payment estimates aggregated by researchers and cited by policy groups ^{[1] [2] [3]}. Those amounts are part of a larger tax contribution picture—one source estimated undocumented immigrants paid roughly $89.8 billion in combined federal, state, and local taxes in 2023, with the Social Security portion a significant slice of payroll taxes ^[2]. Academic and actuarial work underscores that many undocumented workers participate in Social Security–covered employment and have earnings reported to the system, producing measurable payroll‑tax receipts ^{[6] [7]}.

2. How the money gets in: payroll taxes, ITINs, and “suspense” records

Undocumented workers can—and do—pay payroll taxes in several ways: some work under false or borrowed Social Security numbers, others pay income taxes using Individual Taxpayer Identification Numbers (ITINs), and still others have employer‑reported wages recorded to the system ^{[8] [9] [6]}. When wage reports cannot be matched to a valid Social Security number, the earnings go into the SSA’s “earnings suspense file,” meaning the funds are collected but not credited to an individual record until valid documentation is provided ^[9].

3. Why these contributors usually don’t receive benefits

Federal law restricts Social Security benefits to persons lawfully present and to workers whose contributions are legally credited; key statutes and reforms—most notably the 1996 welfare‑reform changes and subsequent additions—bar benefit payments to unauthorized aliens except in narrow circumstances ^{[10] [4]}. Contributions tied to fraudulent or unmatched Social Security numbers cannot typically be used to create an eligible earnings record, so workers who paid taxes while undocumented generally cannot later claim those years unless they obtain lawful status and the SSA can properly match their earnings ^{[9] [8]}.

4. The paradox: “free” contributions that help the system

Because Social Security operates on a pay‑as‑you‑go basis, any additional payroll tax receipts bolster current benefit payments; analysts and think tanks note that undocumented workers’ taxes improve the program’s cash flow and long‑term finances even if the payers themselves are barred from receiving benefits ^{[5] [1]}. Some researchers caution, however, that legalization or amnesty that converts undocumented workers to beneficiaries could shift the fiscal calculus—legal status would allow those workers to claim future benefits and could therefore reduce the net fiscal gain from their prior contributions ^{[5] [11]}.

5. Exceptions, remedies, and lingering policy questions

Not all contributions are permanently “lost” to the worker: if an individual later obtains lawful status and the SSA can verify and link earlier earnings, those years can potentially count toward benefit eligibility, though the rules and practical hurdles are substantial ^{[9] [6]}. Policymakers and scholars remain divided about the best approach: some argue for stricter enforcement of immigration and benefit rules, while others point to the fiscal and ethical implications of millions of workers funding a program from which they and their families are largely excluded ^{[4] [1]}. Reporting and estimates differ in scope and methodology, and the available sources make clear there are tradeoffs between enforcement, legalization pathways, and Social Security’s solvency that continue to drive debate ^{[5] [4]}.