This study estimated the economic penalty that immigrant underemployment imposes, both in forgone earnings and tax payments, using U.S. Census Bureau data to analyze demographic characteristics and estimate the forgone earnings and taxes at federal, state, and local levels. It focuses on three groups of workers: (1) Immigrants who are foreign-educated college graduates; (2) Immigrants who are U.S.-educated college graduates; and (3) U.S.-born college graduates. The research produces findings nationally, as well as for seven states that include a mix of traditional immigrant destinations (California, Florida, New York, and Texas), a relatively new destination state (Washington), and two industrial states that have recently sought to attract skilled immigrants (Michigan and Ohio). Findings indicate that the underemployment of immigrant college graduates results in tens of billions of dollars in forgone earnings and taxes annually, which in turn affects our economy at every level by lowering productivity and consumer demand. Given that skills and education degrade over time if not put to productive use, brain waste can also have long-term detrimental effects on foreign-born workers. Highly skilled immigrants who cannot fully utilize their skills are less likely to earn family-sustaining wages and achieve financial stability for themselves and their families. Finding a way to tap underutilized skills would have a positive impact on national and local economies. [For the full report, see ED586143.]