Fact check: Do undocumented immigrants contribute to federal taxes and how

1. Summary of the results

The analyses provide overwhelming evidence that undocumented immigrants make substantial contributions to federal taxes. Multiple sources confirm that undocumented immigrants paid approximately $96.7 billion in federal, state, and local taxes in 2022, with $59.4 billion specifically going to the federal government ^[1]. Another analysis shows that in 2023, households led by undocumented immigrants paid $55.8 billion in federal taxes ^[2].

The mechanisms for these contributions are well-documented: undocumented immigrants use Individual Taxpayer Identification Numbers (ITINs) to file tax returns and contribute to federal programs including Social Security and Medicare ^[3]. The federal tax contributions break down into $43 billion in payroll taxes and $22 billion in individual income taxes for 2023 ^[4].

Remarkably, the data shows that undocumented immigrants often pay higher effective tax rates than wealthy Americans - in 40 states, they pay higher tax rates than the top 1% of income earners, with an average effective state and local tax rate of 8.9% ^[5].

2. Missing context/alternative viewpoints

The original question lacks several critical pieces of context that emerge from the analyses:

• Potential policy changes could dramatically increase contributions: Providing work authorization to undocumented immigrants would increase their tax contributions by $40.2 billion per year, bringing the total to $136.9 billion ^[1].
• Current enforcement policies may reduce tax revenue: The IRS-ICE data sharing agreement could result in a loss of $25 billion in federal tax revenue in 2026 and $313 billion over the next decade due to decreased tax compliance among undocumented immigrants who fear deportation ^[4].
• Surveillance and data sharing implications: The IRS is building systems to share sensitive taxpayer data including home addresses, familial relations, employment information, and banking details with immigration enforcement ^{[6] [7]}.

Organizations that benefit from highlighting tax contributions include immigrant advocacy groups like the American Immigration Council, which can use this data to argue for comprehensive immigration reform. Conversely, immigration enforcement agencies benefit from data sharing agreements that could reduce compliance but increase deportation capabilities.

3. Potential misinformation/bias in the original statement

The original question itself appears neutral and factual - it simply asks whether undocumented immigrants contribute to federal taxes and how they do so. There is no apparent bias or misinformation in the phrasing of the question.

However, the question's framing could be seen as addressing a common misconception that undocumented immigrants don't pay taxes. The analyses demonstrate this assumption is categorically false, as undocumented immigrants contribute tens of billions of dollars annually to federal coffers through multiple tax mechanisms ^{[1] [2] [4]}.

The most significant potential bias would come from omitting the substantial scale of these contributions or the fact that undocumented immigrants often pay higher effective tax rates than the wealthiest Americans ^[5].