It's Tax Day

As tax day arrives, many undocumented immigrants in the United States are weighing whether to file their returns. Although some political figures have claimed that undocumented immigrants do not pay taxes, researchers estimate that they contribute about $20 billion in income taxes each year. Federal tax authorities allow people to file returns even without a Social Security number, and many undocumented workers have long complied in hopes of demonstrating good faith and responsibility.

This year, however, fear is shaping decisions. Under the Trump administration, tax authorities shared some address information with immigration officials for the first time, prompting concerns that filing could expose immigrants to deportation. Economists warn that if large numbers choose not to file, federal revenue could fall significantly, with one research group projecting a potential loss of $300 billion over a decade.

Meanwhile, many legal residents are seeing the effects of last year’s Republican tax cut. Higher earners in particular reported larger refunds, using the money to pay down debt or boost savings, while lower-income taxpayers often saw smaller gains or none at all. Across the country, Americans continue to spend billions of hours each year navigating a tax system that many find burdensome and frustrating.