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Trump admin axes refundable tax credits for illegal migrants, saving taxpayers $3B
New York Post • • business
Key Points:
- The Trump administration is implementing new rules to restrict illegal immigrants from receiving refundable tax credits, aiming to save taxpayers approximately $3 billion.
- The Treasury Department and IRS announced that only US citizens, US nationals, and qualified aliens will be eligible for the adoption, child, American opportunity, and earned income tax credits.
- These refundable tax credits provide refunds when credits exceed tax liability; the new rules specifically deny the refunded portion to ineligible individuals, though they can still use credits to reduce tax owed.
- Nearly 1 million people are estimated to become ineligible for the refunded portion of these tax credits under the new regulations.
- Treasury Secretary Scott Bessent and IRS CEO Frank J. Bisignano emphasized the move protects taxpayer dollars and ensures benefits go only to eligible recipients.
