In Reply to: I've always wondered about undocumented people sending payments posted by DSCBruin on August 27, 2026 at 15:06:06
1. Payroll withholding through formal employment
When an undocumented worker is employed on the books, the employer must withhold Social Security, Medicare, and federal/state income taxes from every paycheck — immigration status doesn’t change that requirement. Employers typically do this using either a Social Security number the worker provides (sometimes real, sometimes fake) or an ITIN. Even if the SSN is invalid, the taxes are still withheld and sent to the IRS and Social Security Administration.
2. Filing taxes using an ITIN
Many undocumented immigrants file annual tax returns using an Individual Taxpayer Identification Number (ITIN), which the IRS issues specifically for people who cannot obtain a Social Security number. This allows them to pay income taxes legally even without lawful immigration status.
3. Contributions to Social Security and Medicare they cannot collect
A large portion of payroll taxes paid by undocumented workers goes into Social Security and Medicare trust funds, even though they are ineligible to receive benefits from those programs. Estimates show billions in contributions each year — for example, roughly $25.7 billion paid into Social Security in one recent analysis.