Treasury Department to Issue Rules Limiting Tax Credit Benefits for Illegal Immigrants

The Treasury Department announced on Nov. 20 that it would issue new regulations to bar individuals with unlawful status in the United States from accessing tax credit benefits.
In a statement, the Treasury said the proposed rulemaking will cover the “refunded portions” of certain individual income tax credits, such as the earned income tax credit, additional child tax credit, American opportunity tax credit, and saver’s match credit.
Under the proposals, those credits would fall within the definition of “federal public benefits” in the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996, which will exclude illegal immigrants from eligibility to access them….