The Administration of the President of the United States, Donald Trump, announced this Thursday that it will issue regulations to prevent undocumented immigrants from receiving the refundable portions of income tax credits and that these could be applied starting in 2026.
Treasury Secretary Socott Bessent explained that the measure seeks to “enforce the law and prevent undocumented immigrants from appropriating tax benefits intended for American citizens.”
The measure, published on the official Treasury website, seeks to make clear that the refundable portions of credits such as the earned income credit, the additional child credit, the educational credit and the retirement savings credit are considered “federal public benefits” under the Personal Responsibility and Work Opportunity Act of 1996 (PRWORA).
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With that interpretation, supported by a recent opinion from the Office of Legal Counsel of the Department of Justice, only taxpayers with “qualified” immigration status will be able to access these payments, which will exclude the undocumented and other immigrants without legal authorization.
The Treasury Department will publish the notice of proposed regulations in the coming days, which will open a public comment period before the final version for possible application in 2026.
Current legislation already prohibits undocumented migrants from benefiting from tax credits such as the Earned Income Tax Credit because they do not have a valid Social Security number to work.
With information from EFE
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