Illegals can currently claim dependents and receive up to $1,000 per child…
(Joshua Paladino, Liberty Headlines) The Center for Immigration studies analyzed the impact of the GOP “Tax Cuts and Jobs Act” on illegal immigrants and found that it ends Additional Child Tax Credits for non-citizens.
The ACTC is a refundable tax credit, which means it can reduce taxes below zero, effectively serving as a welfare payment.
Illegal aliens can currently claim dependents under the ACTC and receive up to $1,000 per child, even if neither the parents nor dependents are U.S. citizens.
The only requirement for parents is to have an earned income of $3,000 or more.
The GOP tax bill will partially address this system that rewards illegal aliens by creating stricter requirements.
Illegal alien parents will now have to present valid Social Security numbers for their children, though the parents themselves will not have to show proof of citizenship.
So, illegal alien parents will receive welfare payments only for children who are U.S. citizens.
The Center for Immigration Studies says the reform helps discourage payments to illegal immigrants, though it does not entirely fix the problem.
The anti-illegal immigration group wants the federal government to require parents and children to prove citizenship before receiving welfare payments.
“What is needed, of course, is a law or an IRS ruling that says if a filer’s SSN does not match with a legally obtained one, there will be no refunds. None. But this bill does take one big step towards ending a huge welfare benefit that illegal aliens have received for years,” CIS Fellow David North said.
Non-citizen parents can still receive the nonrefundable $500 credit for their non-citizen children under the Child Tax Credit.
The nonrefundable credit reduces taxes for illegal aliens with an obligation to pay, but it cannot serve as a welfare payment.
The CIS report noted that it will be well-off illegal immigrants who qualify for the $500 nonrefundable credit, while poorer illegal alien families will lose the $1,000 per child credit.
The refundable child tax credit increases from $1,000 per child this year to $1,100 in 2018. The CIS estimated this change will save taxpayers $3.9 billion a year, starting in 2019.