Treasury Moves to Prevent Abuse of Refundable Tax Credit Benefits by Illegal Aliens

WASHINGTON – The U.S. Department of the Treasury announced today that it will issue regulations concerning the treatment of certain refundable individual income tax credits under the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA). Treasury will issue a forthcoming notice of proposed rulemaking to clarify that the refunded portions of certain individual income tax credits, including the Earned Income Tax Credit, the Additional Child Tax Credit, the American Opportunity Tax Credit, and the Saver’s Match Credit, are “federal public benefits” within the meaning of PRWORA. Accordingly, illegal aliens and other non-qualified aliens would no longer be able to receive these benefits funded by the American taxpayer.“Under President Trump’s leadership we are enforcing the law and preventing illegal aliens from claiming tax benefits intended for American citizens.