Like all US citizens, undocumented immigrants must pay taxes
Immigrants of any legal status are required to pay the same taxes as US citizens. Most have income and payroll taxes deducted from their wages. If they purchase a home, or any goods and services, they pay state and local property taxes or sales taxes like others in their community.
US citizens and undocumented immigrants interact differently with the federal tax system in the forms of identification they use to file their taxes each year.
If you are a US citizen, you can use your Social Security number (SSN) to file your income taxes. Immigrants who do not have a valid visa or other proof of legal status are not eligible for an SSN. Instead, these workers can apply through the IRS for an individual taxpayer identification number, or ITIN, to file their taxes. As of January 2021, there were an estimated 5.4 million active ITINs.
Don’t be intentionally stupid. It’s done via the exact same mechanism that your taxes get paid when you get your paycheck, associated with their ITIN instead of a SSN. Payroll systems are automated; virtually no employer handles payroll themselves, just like virtually no website handles credit card transactions themselves.
This is a very google-able question. From the Tax Policy Center:
I mean, yeah… sales taxes make sense,
“Most have income and payroll taxes deducted”
But HOW?! like the employer takes off % money, they need like an SIN # or something to tie it to. So what does the employer do?
I don’t see how any undocumented pays ‘income’ tax… other than the employer either doesn’t deduct it, or does and just pockets it.
Don’t be intentionally stupid. It’s done via the exact same mechanism that your taxes get paid when you get your paycheck, associated with their ITIN instead of a SSN. Payroll systems are automated; virtually no employer handles payroll themselves, just like virtually no website handles credit card transactions themselves.