how many illegals file federal tax return,Understanding the Numbers

Understanding the Numbers

When it comes to the number of illegal immigrants who file federal tax returns, the figures can be quite surprising. According to the latest data from the Internal Revenue Service (IRS), a significant number of undocumented immigrants are taking advantage of the tax system to contribute to the economy.

IRS Statistics

According to the IRS, approximately 3.5 million illegal immigrants filed federal tax returns in 2019. This number represents a substantial portion of the total tax returns filed in the United States that year. The IRS has been collecting data on illegal immigrants for several years, and the numbers have been steadily increasing.

Reasons for Filing Taxes

There are several reasons why illegal immigrants might choose to file federal tax returns. One of the most common reasons is to claim the Earned Income Tax Credit (EITC). The EITC is a refundable tax credit for low to moderate-income workers, and it can be a significant financial boost for many immigrants. Another reason is to obtain a Social Security number, which is necessary for many legal and financial transactions in the United States.

The Economic Impact

The economic impact of illegal immigrants filing taxes is significant. According to a report by the Center for American Progress, illegal immigrants contributed approximately $15 billion in taxes in 2016. This includes income taxes, Social Security taxes, and Medicare taxes. The report also found that illegal immigrants paid more in taxes than they received in benefits, contributing positively to the federal budget.

Legal Challenges

Despite the benefits of illegal immigrants filing taxes, there are legal challenges that come with it. The IRS has faced criticism for not doing enough to prevent identity theft and fraud. There have been instances where individuals have used stolen identities to file tax returns, leading to financial losses for legitimate taxpayers. The IRS has been working to improve its systems and prevent such incidents.

Impact on Public Assistance

It’s important to note that while illegal immigrants can file taxes, they are generally not eligible for most public assistance programs. This means that the tax money they contribute goes directly into the federal budget and is used to fund various government programs and services. According to the Migration Policy Institute, illegal immigrants paid approximately $21 billion in state and local taxes in 2016.

Conclusion

Understanding how many illegal immigrants file federal tax returns is crucial for a comprehensive view of the economic and social impact of undocumented immigrants in the United States. While the numbers may be surprising, it’s clear that illegal immigrants play a significant role in the tax system and contribute positively to the economy. As the debate over immigration continues, it’s important to consider the contributions of all individuals, regardless of their legal status.