Undocumented immigrants pay billions into Social Security and Medicare every year, even though most cannot draw benefits from either program

Undocumented workers contribute to Social Security and Medicare through payroll taxes — the same deductions that come out of any worker's paycheck. The Social Security Administration estimates that undocumented immigrants paid approximately $13 billion into the Social Security trust fund in 2020 alone. They also pay Medicare taxes. Yet the vast majority cannot claim Social Security retirement benefits, disability benefits, or Medicare coverage based on those contributions, because they lack lawful immigration status.

This happens because employers withhold these taxes automatically, regardless of immigration status. A worker with a fake Social Security number, an Individual Taxpayer Identification Number (ITIN), or even no number at all may still have taxes removed from their paycheck. The money goes into the same federal accounts as everyone else's. But when that worker reaches retirement age or becomes disabled, they cannot file a claim.

Key Takeaways

  • Undocumented immigrants contribute billions annually to Social Security and Medicare through payroll tax withholding, but cannot draw retirement or disability benefits from either program.
  • An undocumented worker who uses a Social Security number — real, borrowed, or fabricated — will have earnings credited to that number, but cannot later claim benefits on it.
  • Workers paid under an ITIN (Individual Taxpayer Identification Number) have taxes withheld but no earnings record is created, so the money is not credited to any future benefit claim.
  • Some undocumented immigrants may become may be able to access for benefits if they later obtain lawful permanent resident status, but only if they have enough credited work history.
  • The money undocumented workers pay does not disappear — it stays in the trust fund and helps pay current beneficiaries' checks.

How payroll taxes are withheld from undocumented workers

When an undocumented worker is hired, the employer typically requires a Social Security number or tax identification number. If the worker provides a number — whether real, borrowed, or fabricated — the employer treats them like any other employee and withholds Social Security and Medicare taxes from each paycheck. These withholdings go directly to the federal government, just as they do for citizens and lawful residents.

Some undocumented workers use an ITIN instead. An ITIN is a nine-digit number issued by the Internal Revenue Service to people who need to file taxes but do not have a Social Security number. A worker with an ITIN can file a tax return and may receive a refund, but ITIN earnings are not credited to a Social Security account. The taxes are still withheld and sent to the government, but they do not build a work record that could later support a benefit claim.

In other cases, an employer may not withhold taxes at all — the worker is paid in cash under the table. In those situations, no contribution is made to either program.

Why undocumented immigrants cannot claim benefits

Social Security and Medicare are federal benefit programs tied to lawful immigration status. To claim Social Security retirement benefits, you must be a U.S. citizen, a lawful permanent resident (green card holder), or a citizen of a country with a Social Security agreement with the United States. Undocumented immigrants do not meet any of these criteria, so they cannot file a claim, even if they have paid into the system for decades.

The same rule applies to Medicare. While undocumented immigrants do pay Medicare taxes, they cannot enroll in Medicare at age 65 because enrollment requires proof of citizenship or lawful permanent resident status. Some undocumented seniors may be able to access emergency Medicaid (which covers emergency medical conditions only) in their state, but this is separate from Medicare and does not require the same immigration documentation.

This creates a one-way flow: the worker's money goes in, but the worker cannot take it out. The contributions do not transfer to a family member or return to the worker if they leave the country.

What happens to the money undocumented workers contribute

The billions of dollars that undocumented workers pay into Social Security and Medicare do not sit in a separate account or disappear. Instead, the money enters the general trust funds and is used when ready to pay current beneficiaries — retirees, disabled workers, and survivors receiving benefits today. This is how Social Security and Medicare operate: current workers' taxes pay current beneficiaries' checks.

Because undocumented workers cannot claim benefits, their contributions represent a net gain to the trust funds. The Social Security Administration has stated that this influx of revenue actually strengthens the solvency of the Social Security trust fund in the short term. Some researchers argue that undocumented workers' contributions help offset the aging population and rising benefit costs.

However, this benefit to the system is not intentional policy — it is a side effect of the immigration status rules. The worker receives no credit, no refund, and no future claim on the money they paid.

What changes if an undocumented immigrant becomes a lawful resident

If an undocumented immigrant later obtains lawful permanent resident status (a green card), they may become may be able to access to claim Social Security or Medicare benefits — but only if they meet the work history requirement. Social Security typically requires 40 credits of work history (roughly 10 years of full-time work) to claim retirement benefits. Disability benefits have different rules depending on age.

The key question is whether the earnings record exists. If the worker paid taxes under a real Social Security number or a number that was later matched to their identity, those earnings are credited and count toward the 40-credit requirement. If the worker paid under an ITIN or a fake number that was never linked to their actual identity, those earnings do not transfer and cannot be counted.

This is why some immigration attorneys advise undocumented workers to use their own Social Security number (if they have one) rather than a borrowed or fabricated number — it preserves the earnings record in case status changes later. However, using a number that is not yours is illegal, and the consequences can include criminal charges and deportation.

State and local tax contributions

In addition to federal payroll taxes, undocumented workers also pay state income tax (in states that have income tax) and local taxes. These contributions do not go to Social Security or Medicare — they fund state and local services like schools, roads, and emergency services. Undocumented immigrants can use these services regardless of status, but the tax burden is real and measurable.

Some states have explored whether undocumented immigrants should be able to claim certain state-level benefits or tax credits, but these remain limited and vary widely by state. Federal programs like Social Security and Medicare remain closed to undocumented workers regardless of state policy.

Frequently Asked Questions

Can an undocumented immigrant ever get back the money they paid into Social Security?

No. Once an undocumented worker's taxes are withheld, that money becomes part of the Social Security trust fund and is used to pay current beneficiaries. The worker cannot claim a refund, and the money does not transfer to a family member. If the worker leaves the country, they cannot reclaim their contributions.

What if an undocumented worker has been paying taxes for 20 years?

The length of time paying taxes does not change the rule. Without lawful immigration status, the worker cannot claim benefits, regardless of how long they have contributed. If they later become a lawful resident and have 40 credits of work history on record, they may then become may be able to access — but only if their earnings were credited to a valid Social Security number.

Do undocumented immigrants pay Medicare taxes?

Yes. Medicare tax (1.45% of wages) is withheld from undocumented workers' paychecks just like Social Security tax. However, they cannot enroll in Medicare at age 65 because enrollment requires proof of citizenship or lawful permanent resident status. Some undocumented seniors may access emergency Medicaid in their state, but this is a different program.

Does paying taxes help an undocumented immigrant's immigration case?

Paying taxes does not help or hurt an immigration case. Immigration status is determined by law and immigration court decisions, not by tax compliance. However, having a clean tax record can be useful in other contexts — for example, if someone is later able to pursue a legal path to status, tax compliance may be viewed favorably.

Can undocumented immigrants claim the Earned Income Tax Credit?

Undocumented immigrants with an ITIN can file a tax return and may be able to claim the Earned Income Tax Credit (EITC) if they meet income requirements. However, this is a tax benefit, not a Social Security or Medicare benefit. The rules vary by state, and some states have created state-level EITC programs for ITIN filers.