The regulations would clarify eligibility requirements for child, adoption, earned income, and American opportunity tax credits.
By Catholics for Catholics
For some illegal immigrants, the days of getting a cool tax refund every year may be over.
According to a story by the Epoch Times, the Trump administration recommended new regulations on Aug. 19 to stop illegal immigrants from getting refundable individual income tax credits subsidized by American taxpayers.
The Department of the Treasury and the Internal Revenue Service (IRS) proposed the regulations which would affect the child, adoption, earned income, and American opportunity tax credits.
The four individual tax credits mentioned are refundable, permitting taxpayers with a credit larger than the federal tax liabilities they owe to receive taxpayer-funded refunds from the federal government.
The regulations would stop illegal immigrants and other non-qualified individuals from getting tax benefits reserved for American taxpayers, said the Trump administration
“Under President Trump, the days of illegal aliens collecting taxpayer-funded benefits are over. The federal law is clear, and the Treasury is enforcing it,” Treasury Secretary Scott Bessent said.
“American taxpayers should not be forced to foot the bill for benefits going to those who are barred by law from receiving them. These proposed regulations end the abuse, protect the integrity of the tax system, and put Americans first.”
On Oct. 14, the Trump administration said it would look for public comments and stage a public hearing about the regulations.
“Refundable tax credits, like the Earned Income Tax Credit (EITC), were enacted to help low-to-middle income American families and workers receive critical financial support,” IRS Chief Executive Officer Frank J. Bisignano said.
“Today’s proposed regulations ensure that federally funded benefits are reserved for eligible taxpayers and protect the integrity of every taxpayer dollar.”
About 200,000 to 700,000 taxpayers would be ineligible to receive the refunded portion of the tax credits, use the refund to offset non-tax liabilities, or have the refund credited against federal tax liabilities under the proposed regulations, said the Treasury and IRS.
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